The firm is also investing in AI infrastructure, with bets on Delphina, Rerun.io, and OpenPipe. However, it has observed that the infrastructure for model management has not grown as much as expected in the past 18 to 24 months. Despite the advancements in AI, Costanoa maintains that excellent product management and data are still as important as the algorithm. The firm's guiding principles include investing in extraordinary people and focusing on technologies and problems that matter.
Key takeaways:
- Costanoa Ventures, a Palo Alto-based firm, has been investing in generative AI startups from the early stages of the AI wave. The firm's focus today is applied AI, AI infrastructure, and B2B fintech.
- With advancements in AI, problems that were unsolvable two years ago can now be addressed. The firm is also doubling down on cybersecurity and national security.
- Costanoa Ventures believes that generative AI has opened up vertical opportunities that might have been too small in the past. The firm is closely looking at each vertical to understand how big it can be with the rise of AI.
- Costanoa Ventures has made several bets in AI infrastructure. However, the infrastructure for model management broadly has not grown as much as was expected 18 to 24 months ago.