In a bold move to redefine venture capital, Eldad Tamir, the leader of the AI-powered asset management firm FINQ, has unveiled a new initiative to integrate artificial intelligence deeply into investment strategies. Announced on June 15, 2025, Tamir’s plan aims to replace human biases in venture capital with algorithmic intelligence, signaling a pivotal shift in the industry.
Tamir asserts that traditional venture capital methods are becoming obsolete in the face of rapid AI advancements. In a LinkedIn post that resonated widely across the tech investment community, he emphasized the need for reinvention over iteration in venture capital. “The old rules no longer apply,” Tamir declared, warning that sticking to conventional approaches could cost investors their competitive edge.
Amplifying Tamir’s message, a Banking Dive article recently highlighted the industry’s growing unease with AI technologies that function beyond conventional tools. Tamir criticized this apprehension, noting that while investors are eager to fund AI innovations for enhanced dashboards, they hesitate when AI begins to supplant human judgment, which he considers a perilous blind spot.
To address this challenge, FINQ is launching a suite of AI-driven ETFs that employ machine-led rebalancing and adaptive asset selection. This groundbreaking approach eschews the reliance on sector nostalgia, index mimicry, or traditional fund manager discretion. FINQ’s initiative echoes similar moves by firms like QuantumLight, led by Nik Storonsky of Revolut fame. QuantumLight has reported that its AI-sourced portfolio companies outperform top-tier VC benchmarks by a factor of two without traditional gatekeeping.
The use of AI in venture capital is gaining momentum. Recent data from PitchBook indicates that 30% of VC firms now use AI to source at least half of their deals, a significant rise from 7% in 2019. However, Tamir distinguishes between using AI as a mere accessory and making it central to investment strategies.
FINQ’s long-term vision is to establish an investment landscape where algorithms drive the creation of new value, not traditional managers. With internal rates of return declining across conventional VC funds and competition for access intensifying, FINQ believes the next top-performing funds will originate from firms prioritizing machine-learning agility over elite partnerships or Silicon Valley networks.
