๐ค Theory Ventures Marks Three Years: How AI Rewired Venture Economics
Reflecting on its third anniversary, Theory Ventures details how AI moved faster than expected since ChatGPT - from demos to production, with open-source models substituting for enterprise workloads and inference now the dominant AI market. New frontier models are shipping roughly every 41 days, and some AI-native companies are reaching $100M in revenue in record time. The firm argues AI is also reshaping venture firm economics: rather than scaling headcount, small AI-native teams can operate at 10x+ leverage, citing Theory's own build-out of just three investors plus a nine-person engineering 'intelligence' team (13 people total) using in-house agents for market mapping and research. For fintech and VC-adjacent readers, this is a data point on how AI is compressing both portfolio company growth timelines and the operating model of investment firms themselves.
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