In the fast-paced world of venture capital and private equity, making informed investment decisions is paramount. Traditionally, investors have relied on generic expert networks like GLG (Gerson Lehrman Group) for insights. However, a notable shift is occurring as top investors and VC funds increasingly turn to specialized due diligence (DD) firms. This trend is particularly pronounced in complex, rapidly evolving sectors such as artificial intelligence, biotech, and clean energy. Here's why this shift is happening and what it means for the investment landscape.

The lack of specialized DD for AI Startups evaluating their unique risks and challenges leaves investors caught between FOMO (Fear of Missing Out) and investment fatigue. Recognizing these challenges, Jazz Computing has developed a unique, battle-tested approach to technical due diligence that addresses the complexities of AI investments.

AI startups often command high valuations without the ARR to support them, creating a unique challenge for investors. This phenomenon stems from the perceived potential of AI technologies and the scarcity of true AI innovation, leading to intense competition among investors. These unique challenges of AI investments create a complex landscape for investors, characterized by a paradoxical tension between Fear of Missing Out (FOMO) and investment fatigue.