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Apple’s recent announcement (see Techcrunch summary here) is too big not to comment on. Given that we don’t invest in deep tech, AI foundation models, or even in the enterprise tools sitting on top of AI foundation models, you might ask what’s the connection to our applied GenAI strategy? The answer is nothing and everything. The nothing part I’ve already addressed. The everything part is centered around Apple’s pragmatic approach to applying AI, which I deeply admire and that I am confident will pay off for them as well as for our portfolio companies who adopt similar pragmatic approaches.
In a nutshell, Apple is doing a few things very wisely: 1/They didn’t race ahead to put half-baked tech in front of consumers, creating a bad experience – noting that Google is still licking its massive self-inflicted wounds from doing the opposite; 2/ They are using smaller task-specific models that can run locally wherever possible, providing faster response times, more privacy, lower operating costs, and a better experience for the tasks they can do; 3/ Their overall focus is on making something they already do well work even better; and 4/ They are providing users with easy access to the large foundation models of multiple providers as a way to accomplish things that their focused models can’t do. These principles are very similar to those we’ve discussed with many of our portfolio companies and those that Apple now has started showing the world how to execute at scale. I see Apple’s announcement as a big step forward for applying AI, whether you think AI means Artificial Intelligence, Augmented Intelligence, or Apple Intelligence.
Capria Portfolio Highlights
- Masai School launched a Minor in AI in collaboration with the Indian Institute of Technology, Ropar, and the National Skill Development Corporation. This foundational course curriculum is designed to equip students with skills that bridge the AI skills gap. And it’s a huge endorsement of Masai’s pedagogical model and growing presence in tech education.
- Despite operating from a base in Nigeria that has experienced significant currency headwinds in the past year, Moniepoint and SeamlessHR, were recognized in The Financial Times’ prestigious ranking of Africa’s Fastest Growing Companies for 2024, showcasing the region’s resilience and potential for sustainable growth.
Learning on the Road
During my recent trip to the GCC (the Gulf Cooperation Council, which includes UAE and Saudi where we are focused), I led a workshop for the Abu Dhabi Investment Council where I shared insights on how private-market VC investors can tap into the GenAI potential. The session focused on helping their team grasp the speed of GenAI innovation and also offered strategies for identifying and investing in companies applying GenAI to build sustainably better businesses with strong “AI Moats”. I also shared a real-time demo showing how the Capria Ventures team is becoming more efficient using our internal GenAI tool “Due Diligence Copilot”
Over the last few months, my partners and I have developed some insights based on three visits to the GCC. After our trip last month, I penned my observations and insights about the region’s VC ecosystem maturation in a blog here. I discuss the importance of global VCs looking beyond just capital and truly adding value to the ecosystem by offering seasoned guidance, connectivity, and Global South domain expertise to support the growth of GCC startups. By continuing to build strong local partnerships, we will accelerate the development of a vibrant startup ecosystem in the region.
Moving beyond the GCC, it’s interesting to see parallel advancements in Southeast Asia. Southeast Asia remains a key focus for major tech companies, with Google making a multibillion-dollar investment in Malaysia shortly after Microsoft announced a $2.2 billion investment in the country’s technology sector. The region’s potential is driven by its young, dynamic workforce and rising incomes, creating a fertile ground for tech and consumer market innovation. This and the region’s relatively neutral geopolitical stance make it an attractive destination for global investments, further driving economic growth and technological advancement. With two team members residing in Jakarta and three strong investing partners (in Indonesia, Vietnam, and Singapore), we continue looking for breakout opportunities and have brought three to our IC in the past 2 months.
Insights from Capria’s Partners in the News
- Dave Richards was recently featured in DealStreetAsia where he discusses how Generative AI is revolutionizing the startup world. Dave highlights how GenAI can be a game-changer for startups, positioning them for future success and opening doors to new investors.
- Business Insider recently featured Susana Garcia-Robles, where she challenges the conventional wisdom of chasing unicorns in venture capital. She advocates for a shift towards a more sustainable and resilient approach epitomized by the “camel” model over the hyper-growth pursuit of unicorns.
