The ideal founder profile for vertical software has shifted. Previously, VCs backed deep domain experts from a specific industry. Now, with the rapid pace of AI model development, the advantage goes to scrappy, high-hustle teams whose ability to quickly productize the latest AI advancements is more valuable than static industry experience.

Redpoint Ventures' Erica Brescia describes a shift in their investment thesis for the AI era. They are now more likely to back young, "high-velocity" founders who "run through walls to win" over those with traditional domain expertise. Sheer speed, storytelling, and determination are becoming more critical selection criteria.

In VC, where being wrong is the norm (80%+ of the time), the most critical trait is not righteousness but deep curiosity. This learning-first mindset is what uncovers non-obvious opportunities and allows investors to see future market shifts before they become mainstream, according to True Ventures' Jon Callaghan.

In new, rapidly growing categories like AI, waiting for a perfectly differentiated company is a mistake. Differentiation is achieved over time through speed and execution. The right strategy is to bet early on strong teams in categories you have high conviction in, even if the initial competitive moat isn't obvious.

Venture capital has become a scaled, specialized business with large teams. The future, however, belongs to compact firms of well-rounded individuals who can source, exercise judgment, sell, and help companies. Over-specialization where one person sources and another helps is an inefficient model.

Resist the common trend of chasing popular deals. Instead, invest years in deeply understanding a specific, narrow sector. This specialized expertise allows you to make smarter investment decisions, add unique value to companies, and potentially secure better deal pricing when opportunities eventually arise.

Unlike a research scientist who focuses deeply on a single project, a biotech investor's work involves constant topic rotation. Their value comes from looking broadly across therapeutic areas and company stages, speaking with up to 10 companies a day to identify patterns and opportunities in a rapidly changing sector.

Competing to be a founder's "first call" is a crowded, zero-sum game. A more effective strategy is to be the "second call"—the specialist a founder turns to for a specific, difficult problem after consulting their lead investor. This positioning is more scalable, collaborative, and allows for differentiated value-add.

The ideal founder profile for AI startups is shifting. Previously, deep domain expertise was paramount. Now, the winning archetype is a scrappy, fast-moving team that can keep pace with rapid model development and quickly productize the latest advancements, outpacing slower, more established experts in their respective fields.