Artificial Intelligence is no longer a buzzword on the sidelines of venture capital. It’s becoming the backbone of an emerging breed of venture capital (VC) firms – from sourcing deals and conducting due diligence to supporting founders and boosting portfolio performance.
But this isn’t just about chasing efficiency. It’s a direct response to a fundamental shift in startup culture. The era of “blitzscale or bust” is past. A new generation of ventures – what we call camel startups – is rising. These companies grow deliberately, use capital wisely, and are designed to survive turbulence, not ride hype cycles.
To find and support these companies, venture capital needs a new playbook. And AI is writing it.
How AI Helps Spot the Camels in a Unicorn-Obsessed World
Camel startups are often overlooked by traditional filters that prioritize explosive growth and short-term metrics. Instead, these ventures signal resilience in more subtle ways – through consistent unit economics, lean operations, and mission-aligned leadership.
AI technologies are especially suited to uncovering these nuanced signals. By analyzing large volumes of unstructured data, such as customer feedback, founder behavior, or product usage trends, AI can detect:
- Operational discipline in capital deployment
- Early product-market fit in niche segments
- Long-term thinking in founder communications
- Growth signals in underserved or unconventional markets
These insights help investors identify companies that may not look flashy – but are built to last.
AI-Powered Techniques Reshaping Venture Capital
Across the VC lifecycle, AI is transforming high-leverage activities into structured, data-informed processes. Here are three key areas where firms are gaining an edge:
AI-driven tools can scan thousands of pitch decks, websites, and digital footprints to identify promising startups early. Algorithms prioritize companies based on unique sets of data points and insights ranging from relevance, traction, and founder signals – saving hours of manual research.
Large Language Models (LLMs) and Natural Language Processing (NLP) help firms analyze legal documents, financial reports, and customer sentiment. These tools highlight red flags and identify patterns that humans may miss – turning diligence into a dynamic, continuous process.
Generative AI automates reporting, KPI tracking, and risk flagging. This allows firms to maintain real-time visibility across their portfolio, while freeing up time to focus on strategic support rather than manual data gathering.
Case in Point: How Startups Are Using AI to Build Better
It’s not just investors using AI – savvy startups are baking AI into their operating models to scale smarter and faster.
- Sniff.so, a UAE-based AI-powered lead generation platform, leverages advanced artificial intelligence to monitor and analyze real-time data from public social media channels. By using natural language processing and machine learning, Sniff.so filters out irrelevant or outdated information and delivers high-quality, actionable business leads directly to users. Its intuitive, conversational interface and personalized alerts help professionals, freelancers, and enterprises efficiently discover new opportunities and clients – streamlining a process that once required hours of manual searching across multiple platforms.
More and more startups are using AI not just as a feature, but as infrastructure. It’s no longer a competitive advantage – it’s a prerequisite for staying lean and future-ready.
From Hype to Infrastructure: Embedding AI Strategically
Despite the benefits, many firms still treat AI as a plug-in tool, not a foundational capability. The shift toward intelligent capital requires:
- Robust data governance to protect sensitive financial and customer data
- Modern infrastructure that supports integration across systems and workflows
- Cross-functional teams, where investment professionals collaborate with data scientists and AI engineers
The firms that will lead in the next decade are those investing in AI capabilities today – not just for speed, but for insight. Not just for efficiency, but to discover new growth and massive new market expansion.
Conclusion: The Future of Capital Is Intelligent
As LPs demand more transparency, founders expect more value, and markets remain unpredictable, AI is becoming the connective tissue between capital and conviction. It allows investors to move beyond noise, hype, and short-term metrics – and toward ventures that signal real staying power.
In this new era, camel startups are leading the way. And AI is the compass helping venture capital find them.
