Very interesting read! I would be interested in your opinions on the following two aspects:
1) Assuming that Handcraft VCs will continue to work completely without engineers, while imagining pure quant VCs will rather resemble the typical tech hedge funds (e.g. Renaissance Technologies, Two Sigma, ...), what would be a probable long-term scenario regarding the share of engineers in the staff of Augmented VCs? And do you think the respective VC's industry focus or similar factors are mainly determining this?
2) Regarding the investment team members of Augmented VCs (assumingly non-engineers / non data-scientists) who presumably make the final decision where to invest: how important do you think it will become for them to understand the machine-learning / data-science / tech side of their fund - at least - to a certain degree? It seems that in very quantitatively oriented investment firms the employees making the investment decision are expected to have a quite deep understanding of the code generating the investment signals - one example would be Jane Street.
You forgot to add the sheep VC. The VC who mostly invests in companies where top VC brands are invested.
Very interesting read! I would be interested in your opinions on the following two aspects:
1) Assuming that Handcraft VCs will continue to work completely without engineers, while imagining pure quant VCs will rather resemble the typical tech hedge funds (e.g. Renaissance Technologies, Two Sigma, ...), what would be a probable long-term scenario regarding the share of engineers in the staff of Augmented VCs? And do you think the respective VC's industry focus or similar factors are mainly determining this?
2) Regarding the investment team members of Augmented VCs (assumingly non-engineers / non data-scientists) who presumably make the final decision where to invest: how important do you think it will become for them to understand the machine-learning / data-science / tech side of their fund - at least - to a certain degree? It seems that in very quantitatively oriented investment firms the employees making the investment decision are expected to have a quite deep understanding of the code generating the investment signals - one example would be Jane Street.