Publications
Publications
- January 2025
- HBS Case Collection
AI Meets VC: The Data-Driven Revolution at Quantum Light Capital
By: Lauren Cohen, Grace Headinger and Sophia Pan
Abstract
Ilya Kondrashov, CEO of Quantum Light Capital, was driven to harness AI for identifying high-potential scale-ups. Collaborating with Nik Storonsky, founder of Revolut, the duo observed that most venture capital (VC) decisions were heavily influenced by emotion, with strategic intuition often masking inherent biases. They saw these judgment-driven inefficiencies as an opportunity to disrupt the market. To address this, they developed Aleph—an AI system capable of analyzing millions of data points to predict a scale-up's potential for success.
However, Aleph was not without its flaws. There were moments when Kondrashov found himself questioning the algorithm's conclusions and considering whether to rely on human judgment instead. This raised critical questions: Could AI truly outperform human intuition in VC decision-making? And when, if ever, should Kondrashov override the model’s recommendations to make a call based on his own insights?
Keywords
Artificial Intelligence; Business Finance; Data Analysis; Angel Investors; Cognitive Biases; Scale; Venture Capital; Investment; Business Model; Forecasting and Prediction; Technological Innovation; Innovation Strategy; Behavior; Cognition and Thinking; Public Opinion; Private Sector; Business Strategy; Competitive Advantage; Business Earnings; Behavioral Finance; AI and Machine Learning; Analytics and Data Science; Business Startups; Financial Services Industry; London; United Kingdom
Citation
Cohen, Lauren, Grace Headinger, and Sophia Pan. "AI Meets VC: The Data-Driven Revolution at Quantum Light Capital." Harvard Business School Case 225-053, January 2025.