How AI is Changing Venture Investing

1300
03:48:19.870 –> 03:48:22.910
Julia Nimchinski: Welcome to the show. Robert Robert Filters.

1301
03:48:23.870 –> 03:48:26.499
Robert Felters: Thank you for having me. It’s great to be here, guys.

1302
03:48:28.270 –> 03:48:36.269
Julia Nimchinski: Great to have you on the show. Robert is the CEO of Insight Innovation Fund, and we will discuss how AI is reshaping

1303
03:48:36.390 –> 03:48:40.039
Julia Nimchinski: surprise venture investing and capital.

1304
03:48:40.860 –> 03:48:49.710
Julia Nimchinski: So, Robert, to just kick things off. What’s your prediction for AI and venture investing for 2025.

1305
03:48:50.520 –> 03:48:53.880
Robert Felters: My personal prediction is that

1306
03:48:54.140 –> 03:49:01.069
Robert Felters: the whole game’s going to change. And the presentation I’m going to show everyone today will kind of probably really give

1307
03:49:01.360 –> 03:49:17.829
Robert Felters: some real clarity and vision around one what I think and what we believe as a team is going to happen. And also how things are. You know, we need to be thinking 3, 4, 5 years ahead of the curve at the moment, because things are changing at such a fast pace. It’s hard to keep up.

1308
03:49:17.970 –> 03:49:22.260
Robert Felters: So I’ve got a presentation to share with everybody today.

1309
03:49:22.410 –> 03:49:27.299
Robert Felters: If I can share my screen, it’d be great and kind of go straight into it. If that works for you.

1310
03:49:27.640 –> 03:49:28.550
Julia Nimchinski: Let’s do it.

1311
03:49:28.750 –> 03:49:34.420
Robert Felters: Perfect. Me, just try. And

1312
03:49:47.180 –> 03:49:53.070
Robert Felters: okay, can you see that screen.

1313
03:49:55.030 –> 03:49:57.830
Julia Nimchinski: Oh, I was on mute! I actually cannot.

1314
03:50:00.490 –> 03:50:02.659
Robert Felters: Okay. One second apologies.

1315
03:50:06.360 –> 03:50:11.170
Robert Felters: This is why, here we go.

1316
03:50:11.950 –> 03:50:12.555
Julia Nimchinski: Amazing

1317
03:50:13.990 –> 03:50:25.030
Robert Felters: Perfect. Okay? Well, welcome to the Insight Innovation Fund’s 15 min deep. Dive into AI IP

1318
03:50:25.480 –> 03:50:27.540
Robert Felters: and the future of venture capital.

1319
03:50:27.780 –> 03:50:37.430
Robert Felters: This is our honest and unfiltered take on where the market is headed and what it means for you, whether you’re an investor, a founder.

1320
03:50:37.650 –> 03:50:39.569
Robert Felters: or building in the AI space.

1321
03:50:47.620 –> 03:50:55.050
Robert Felters: So you know, AI is reshaping capital markets, as we all know, and Vc.

1322
03:50:55.230 –> 03:51:09.650
Robert Felters: Hasn’t quite caught up, you know. For me you might have built something incredible an AI product that could change industries. But most AI founders kind of fall into the same trap which is, raise money

1323
03:51:09.750 –> 03:51:16.389
Robert Felters: business on customer acquisition, race to outscale competitors and pray they don’t get

1324
03:51:16.560 –> 03:51:39.440
Robert Felters: swallowed up by Openai, Google, or Amazon, or one of the big tech and not swallowed up for the right reasons, either, which isn’t an acquisition. It’s normally something different. And for us the reality is capital alone won’t protect you, and without AI infrastructure patents and real defensibility. You’ll be outspent.

1325
03:51:39.440 –> 03:51:54.060
Robert Felters: outcompeted, and obsolete, you know. It’s a tall order, and the next AI giants won’t just be apps. They’ll be the ones who own the rails. AI runs on, and that’s my firm belief, and the team’s firm belief. And I think that’s where

1326
03:51:54.070 –> 03:51:57.579
Robert Felters: the world and the direction of travel truly is at the moment.

1327
03:51:57.930 –> 03:52:03.330
Robert Felters: And so, you know, AI is reshaping capital markets.

1328
03:52:04.020 –> 03:52:07.660
Robert Felters: But it hasn’t caught up like we’ve said. And

1329
03:52:08.430 –> 03:52:31.069
Robert Felters: you know AI is not a software as a service, but Vcs kind of fund it like it is software as a service still. But for us, everyone understands now that AI requires infrastructure, compute and defensibility not just recurring revenue to be successful, and Vcs kind of bet on traction, but not moats.

1330
03:52:31.370 –> 03:52:36.819
Robert Felters: And so AI founders kind of burnt cash to survive pricing shifts

1331
03:52:36.870 –> 03:52:40.869
Robert Felters: rather than build real defensibility. And

1332
03:52:40.910 –> 03:52:52.979
Robert Felters: you know, number 3, big tech will always win unless you own the rails. So if you don’t own the AI infrastructure. You’re just renting from Openai and Google or Amazon

1333
03:52:52.980 –> 03:53:19.279
Robert Felters: and AI. Eventually, in our opinion, will become a commodity like electricity. So a foundational element that people will build on in the future. So it’ll just be embedded in our daily lives. And it’s becoming more commonplace, especially in the Us. They’re probably 5 years ahead of the curve of Europe and the Uk. In my opinion, I’m in the Uk, and the personal kind of perception of AI over here versus the Us. Is not commonplace like it is

1334
03:53:19.480 –> 03:53:34.250
Robert Felters: over in the Us. Obviously, business is integrating things in a rapid way. However, us is slightly ahead of the curve. And you know, 2 weeks ago we spoke to a

1335
03:53:34.520 –> 03:53:44.500
Robert Felters: an AR startup founder who built a brilliant automation tool. This is an example, by the way. So you know that we spoke to somebody, and they were 100% dependent on Openai’s Api.

1336
03:53:44.660 –> 03:53:51.890
Robert Felters: And for us they were one price change away from their entire business model being underwater, which you know.

1337
03:53:52.070 –> 03:54:01.249
Robert Felters: kind of brings us back to this approach for us, where we invest in AI 1st startups focused on infrastructure, orchestration and automation.

1338
03:54:01.670 –> 03:54:06.839
Robert Felters: And we have filed patents and will work alongside founders to lock in competitive moats.

1339
03:54:07.110 –> 03:54:17.380
Robert Felters: You know. For us, it’s about building category defining AI companies, not just software tools. And the result of that is AI 1st companies that are protected from day one

1340
03:54:17.560 –> 03:54:22.710
Robert Felters: not just trying to keep up and trying to keep their head above water.

1341
03:54:23.260 –> 03:54:31.980
Robert Felters: So you know our approach. You know our approach to market was fairly simple. In that

1342
03:54:32.130 –> 03:54:43.310
Robert Felters: we asked the question of what if venture capital didn’t just fund AI startups, but actually protected them and and kind of what if

1343
03:54:43.420 –> 03:54:49.060
Robert Felters: defensibility was built into the investment process from day one, you know. So for us.

1344
03:54:49.340 –> 03:55:07.869
Robert Felters: Insight Innovation Fund isn’t just a fund we’ve kind of trying to become, or we are becoming, co- architects of the AI economy, which is a very different approach to the traditional Vc. And you know this is where the game changes, in my opinion. So you know.

1345
03:55:08.020 –> 03:55:27.820
Robert Felters: we’ve already filed 9 provisional patterns across core AI infrastructure layers. So we’re not really focused on the Llm models and the big data. We’re focused on how it works, and the integration of said kind of layers, so orchestration and secure computing, massive

1346
03:55:28.030 –> 03:55:40.249
Robert Felters: trust and compliance, cyber security and AI defense and kind of the whole adaptive learning piece, which is massive at the moment alongside another 6,

1347
03:55:40.320 –> 03:55:57.820
Robert Felters: you know, kind of provisionals that we’ve put in place at the moment. And what’s interesting around. What we’re doing is these aren’t just patents on their own. They form a strategic AI ecosystem, giving portfolio companies companies built in defensibility from day one

1348
03:55:57.820 –> 03:56:10.790
Robert Felters: so, and they all interlock, and they all work together. So each pattern works in its own way. But they also work in synchronicity around the application of use. So it’s a very interesting model.

1349
03:56:10.790 –> 03:56:20.599
Robert Felters: something. We’re very excited about taking a lot of work to get to this point. But this is the way the game is going to be played, in my opinion.

Julia Nimchinski:
1350
03:56:20.830 –> 03:56:26.660
Julia Nimchinski: and you know for us, you know, the traditional Vc model, you know.

1351
03:56:27.790 –> 03:56:55.070
Robert Felters: we don’t back startups. We back. Don’t start from scratch. They plug into our AI patent ecosystem, and we help founders build moats before they scale. Or as they’re scaling. So it’s done sequentially as they’re building their go to market strategy and how they’re building their product out. You know, we’re building the motor alongside it. So they’ve got that protection mechanism as they’re building their product out. And

1352
03:56:55.210 –> 03:57:23.749
Robert Felters: you know, we’re not here to invest in quick exits. We’re here to invest and dominate the AI infrastructure. So this for us isn’t just funding. It’s a strategic play in redefining AI in itself, in terms of how the Vc. World operates and works very disruptive. And I think, as a case study. If you look at Nvidia, they didn’t just build AI tools. They built the infrastructure that AI runs on, and now they control the market. So this is where it’s heading.

1353
03:57:23.750 –> 03:57:36.900
Robert Felters: There’s going to be a bit of a bumfight in a way, in the coming months and years to come. So we’re kind of gearing up for the fight a little bit in a different way. So.

1354
03:57:36.910 –> 03:57:40.989
Robert Felters: and as everyone knows, the second, your AI gets noticed

1355
03:57:41.420 –> 03:57:52.090
Robert Felters: someone will try and copy it. So one of the 1st things we do with founders bang secure their competitive moat. But we take it further because startups. We back don’t just start from scratch.

1356
03:57:52.200 –> 03:58:04.350
Robert Felters: They get access to pre-existing the ecosystem that locks in defensibility from day one. So they’ve got time to breathe and go to market and build the product alongside what we’re doing.

1357
03:58:04.450 –> 03:58:08.609
Robert Felters: So like, I say, very different approach.

1358
03:58:09.090 –> 03:58:29.860
Robert Felters: And for us, insight innovation Fund, we aren’t just funding. AI. We’re securing AI’s future by being vertical and industry agnostic. So these patents that we’ve you know, the provisionals that we’ve put in to start, you know we’re only just getting started here, but you know they cover a vast array of sectors. So we’re targeting from finance and Fintech

1359
03:58:30.250 –> 03:58:35.449
Robert Felters: healthcare and life sciences, cybersecurity and AI defensibility.

1360
03:58:35.600 –> 03:58:46.710
Robert Felters: climate tech manufacturing robotics, you know. And each of these kind of sectors you know, we’re ensuring, we build defensible AI first, st companies that dominate their space.

1361
03:58:47.150 –> 03:58:52.979
Robert Felters: and you know, very different. And the application of use for these provisionals that we’ve we’ve put in place.

1362
03:58:53.470 –> 03:58:54.340
Robert Felters: you know.

1363
03:58:54.480 –> 03:59:01.670
Robert Felters: cover a broad broad, as you can see here in terms of the sectors we’re covering so very interesting from that perspective.

1364
03:59:01.910 –> 03:59:25.059
Robert Felters: And you know, fast forward. 5 years. AI is embedded in everything, and the biggest players aren’t the ones who raise the most money. It’s the ones who control the infrastructure from day one. So for us, inside innovation fund. We’re making sure our founders are those players. So my kind of message really is, if you’re a founder, we’re only backing a select few of AI 1st companies

1365
03:59:25.230 –> 03:59:29.939
Robert Felters: this year, you know, if you want to build AI infrastructure and not just another app.

1366
03:59:29.940 –> 03:59:59.790
Robert Felters: you need to kind of talk to us today, because, you know, we’re super keen to kind of get the right companies on board inside what we’re doing and work with them. And you know, for investors. The next trillion dollar kind of AI companies won’t just build applications. They’ll own the AI infrastructure. And that’s what we’re investing in. So you know, if you really want to connect with us. Obviously, Innovationfundai is our website. Send us your decks to Pitch Innovation Fund. And if you’re interested in the Investment material again, Investor Innovation Fund.

1367
03:59:59.790 –> 04:00:22.909
Robert Felters: We’re here very open. We’ve got a very, very capable team for the likes of cybersecurity. We’ve got Pierre Noel, who is ex-global head of Microsoft security for Asia. As an example, we’ve got Wayne Kirk-smitt. He’s based in Japan. He’s our product, Guy. He’s been fundamental to our patent applications.

1368
04:00:22.940 –> 04:00:33.109
Robert Felters: very very capable, very interesting in terms of how we can help. And the teams, you know, we’ve got a Rock Star team to be honest in terms of

1369
04:00:33.170 –> 04:00:37.199
Robert Felters: the support mechanism here. If so, you know, do reach out.

1370
04:00:37.320 –> 04:00:47.640
Robert Felters: and that’s kind of where we are open to questions, Julia. I don’t know if I’ve got anything to ask, but feel free to fire away, so

1371
04:00:47.750 –> 04:00:49.179
Robert Felters: I’ll try my best to answer.

1372
04:00:49.800 –> 04:01:01.700
Julia Nimchinski: Yeah, thanks so much, Robert. Amazing presentation. And Matt, we’re about to start off if you want to join the conversation. And in case you have some questions. Stop

1373
04:01:01.960 –> 04:01:17.949
Julia Nimchinski: that, Gerard. Here. You can also join. Question for me, Robert. What are your patents? You kind of showed it slightly in one of the slides. But I’ve never seen this model before. So just curious what?

1374
04:01:17.950 –> 04:01:19.630
Julia Nimchinski: Yeah, sure to create this model.

1375
04:01:20.402 –> 04:01:22.480
Robert Felters: Yeah. So we

1376
04:01:22.700 –> 04:01:39.680
Robert Felters: we was looking at the future of where AI is heading and not just where it is. Right now, everyone’s focused on big data and the Llms. And the agents. We’ve kind of gone the next stage of evolution, I suppose, in terms of where it’s going to go in terms of the infrastructure play.

1377
04:01:39.730 –> 04:01:50.869
Robert Felters: So we’ve been very selective, and, you know, very adaptive, I suppose, almost in terms of our approach to this and kind of gone. Well, what does AI need

1378
04:01:50.870 –> 04:02:20.719
Robert Felters: to function in terms of automation, orchestration and all the decision making abilities to take it from where it is currently in its box to kind of everywhere. And this is not the roadmap we’ve built. So it’s been very, very intricately thought out, and, you know, applied in a way that as we build this core infrastructure over the next several months, you know, it’s in place. It’s starting to be built at the moment in place.

1379
04:02:20.750 –> 04:02:28.300
Robert Felters: you know, it’s going to kind of change the game in terms of how that supports that ecosystem. I don’t know if that answers your question, but hopefully.

1380
04:02:29.100 –> 04:02:32.790
Julia Nimchinski: Yep, and question from the audience, which verticals

1381
04:02:32.950 –> 04:02:37.229
Julia Nimchinski: and use cases are most appealing for the kind of AI you’re building.

1382
04:02:37.900 –> 04:02:56.969
Robert Felters: Yeah. So in answer that question, I wholeheartedly believe that the use cases and verticals that we can apply this technology to in terms of the provisionals and defensive mode is pretty much every sector, because everything that we’re building here on the screen you can see I’m sorry. Wrong screen

1383
04:02:56.980 –> 04:03:19.309
Robert Felters: this screen here. Sorry. Everything we’re building on the screen here effectively applies to all in every sector that everyone’s working at the moment. I believe you know, it’s got some application of use, whether it be individually or in Lego blocks. And that’s how we’re building it in Lego block formation. So you know, we can build and adapt as and when required.

1384
04:03:21.690 –> 04:03:28.470
Julia Nimchinski: And last question here. People are curious to know if you will share the deck after this Webinar.

1385
04:03:28.470 –> 04:03:54.659
Robert Felters: Yeah, so more than happy to share what we’re doing. You know, we’re trying to be collaborative in the right ways. You know, we went live with the fund last week. So we are brand new to market in terms of our approach, keen to collaborate, keen to build relationships with the right people, and kind of, you know, every day’s a school day, so more than happy to share the information we’ve got. Obviously, the provisionals are.

1386
04:03:54.910 –> 04:04:15.010
Robert Felters: you know, under lock and key in terms of nda and kind of we’re only sharing certain information to protect the IP for now. But if people go down the process of kind of engaging with us. Either, be it from a startup point of view or an investor, we can disclose and obviously share the relevant information at the right time. That’s no problem.

1387
04:04:15.950 –> 04:04:18.010
Julia Nimchinski: Amazing thanks so much. Robert.

1388
04:04:18.140 –> 04:04:21.529
Robert Felters: Not that cool is we want. We owe a lot of time.

1389
04:04:22.150 –> 04:04:24.350
Julia Nimchinski: Yep, perfect. You guessed it.

1390
04:04:24.700 –> 04:04:29.120
Robert Felters: Cheers. Guys, appreciate it and have a good day. Thank you. Bye, bye.