Key Takeaways from the 2024 Venture Revolution Conference in San Francisco

Foley & Lardner LLP recently sponsored the Venture Revolution Conference in San Francisco, looking at what’s next in artificial intelligence and venture capital. The event was organized by Kayvan Baroumand of SignalRank and Innowise and featured discussions with some of Silicon Valley’s most iconic venture capitalists, entrepreneurs, and professionals who are leading the way in AI. Foley partner Louis Lehot also led a fireside chat at the event.

Some highlights from the conference discussions are below:

• The event included speakers like Jeremiah Owyang, who discussed the rise of the AI agent economy, as well as Ronald Ratcliffe of BlackRock, who covered the eponymous investment firm’s use of AI and its integration into their systems, particularly through their “Theme Machine” to identify investment themes.

• Faraj Aalaei compared AI to the early days of the internet, highlighting the opportunity to leverage AI models to create products that are tailored to specific market needs. Max Gokhman and Franklin Templeton also discussed the need for explainable AI for both compliance and risk management, as well as transparency.

• Foley partner Louis Lehot noted that while AI does not replace lawyers, it does help firms improve efficiency and accuracy.  He also noted that the incoming Presidential administration would likely be more focused on deregulation than regulation.  Given the pending change of SEC chair in January 2025, the outlook for AI applications to the digital asset industry looks particularly buoyant.  With no current government bodies claiming jurisdiction to regulate artificial intelligence, Lehot expects that while the new administration will not likely jump in, some states like California may seek to both legislate and regulate.

• A multistage panel also covered the multifaceted ways in which venture capital firms invest in AI startups, as well as how they see the future of the industry. Reema Khan of Green Sands Equity said she sees the great potential of cost saving in many larger companies, and she feels public market investment processes will be more likely to be replaced by AI than within venture capital. Eric Benhamou of BGV also stated his team is using AI to streamline deal flow, generate summaries, and ensure accountability.

• Gené Teare with Crunchbase discussed the robust seed funding in the AI sector today while Series A rounds have tightened. Investment in the sector continues to drive new cycles of innovation. Peter Walker and Carta discussed timing between investment rounds, saying to plan for at least 24 months between fundraisers. He noted that it could stretch from 30-36 months.

Foley & Lardner goes beyond the law to partner with key industry leaders across the technology sector and innovation economy.  We seek to foster intimate conversations where new ideas can be shared and help build new business.