San Francisco–based DVC has launched DVC AI Fund I, a $75 million fund focused on Series A and B rounds. The new vehicle zeroes in on core AI infrastructure, vertical model stacks, and application-layer solutions. It has already made five investments.
In addition to this, the firm has taken a bold step by firing its entire analyst team and replacing them with proprietary AI agents and a global network of more than 170 limited partners.
Instead of relying on analysts, DVC’s new structure is powered by a collective of founders-turned-investors from OpenAI, Google, Meta, Microsoft, Tesla, and SpaceX. These LPs not only identify new investment opportunities but also actively mentor and connect portfolio companies. In exchange, they earn carried interest, creating a distributed, performance-based model where the ecosystem itself drives returns.
“At DVC, AI is the backbone of a complete rethink of how a venture firm operates, flipping the traditional due diligence process on its head. Instead of reaching out to founders first, DVC’s AI agents build a comprehensive deal memo and conduct most of the preliminary due diligence before initial contact. T
his is possible because much of the necessary information (like company decks, market data, competitor analysis, and valuation principles) is available before the call, so there’s no need to waste founders’ and investors’ time. What used to take a full day for an expensive analyst can now be done in minutes for under 30 cents, ” said DVC exclusively to TFN.
This model has already fueled the success of over 120 startups backed by DVC’s seed fund. Its portfolio includes major players such as AI search decacorn Perplexity AI, chipmaker Etched, Mira Murati’s Thinking Machines Lab, and Higgsfield, an AI video startup that skyrocketed from zero to $50 million ARR in under a year.
Experienced team doubling down growth
Founded by husband-and-wife duo Marina Davidova and Nick Davidov, DVC has brought in heavyweights. Mel Guymon, a former Google and Yahoo executive, joins as General Partner to guide enterprise go-to-market strategies. Charles Ferguson, creator of Microsoft’s FrontPage and an Oscar-winning filmmaker, will lead deal origination. Alexey Rybak, formerly of Meta AI and Perplexity AI, steps in as VP to enhance product and technical depth.
Notable LPs backing the new fund include Mike Arrington (Arrington Capital), Denis Yarats (Perplexity AI), and Andrew Filev (Wrike). Their combined experience and capital signal strong confidence in DVC’s unconventional model.
Rewrites the venture playbook
At the heart of DVC’s transformation lies its AI-driven decision engine. It automates data-heavy tasks like deal sourcing, due diligence, and performance tracking, and processes that traditionally consume analysts’ time. DVC’s system analyses 120 signals across traction, team strength, and investor interest to build deal memos automatically. What once took a day now happens in minutes and costs under 30 cents.
Once data collection and analysis are complete, DVC’s partners focus on human-centric insights, such as founder motivation, culture, and team chemistry. The system also predicts which portfolio startups are nearing breakout moments, allowing DVC to make early, low-friction investments before competitors step in.
“If the system detects an inflexion, say, exceptional growth plus soft signals like Sequoia partners connecting with the founder on LinkedIn, DVC will offer a $1M+ SAFE cap months before a formal raise. Founders get cash without distraction and a better negotiating position for the round; DVC locks in an allocation that can reprice 2–3x higher within a quarter,” said. Nick Davidov, DVC Co-Founder and GP.
“We fired our analysts and hired our LPs — empowering them with AI so they can focus on the most impactful work without the chore. Thus, we get megafund‑level resources on one‑hundredth of the budget. We proved the model works. Now we scale,” adds Marina Davidova, DVC Co‑Founder and GP.
