Bain Capital Tech Fund says AI investing is too speculative

bain capitaltechnology fund reportedly stands out from other funds by not rushing to back the latest artificial intelligence (AI) startups.

Darren AbrahamsonA partner in Bain Capital’s Tech Opportunities team told Bloomberg: report posted on Thursday (February 22), said the fund’s focus is on supporting late-stage companies looking to scale and grow with the help of capital and expertise.

“Over time, it will evolve,” Abrahamson said of AI companies, according to the report. “But right now, that feels a little premature to us and a little more speculative than what we’re focused on.”

The fund’s portfolio includes leading companies from various sectors, including securities companies. black point cyberhealthcare company athena health sports video analysis company huddleaccording to the report.

While other Bain Capital funds do focus on cutting-edge investments, Bain Capital Tech Opportunities’ strategic approach includes founders and owners who have already reached a certain level of scale. This includes investments in established businesses led by the company, the report said.

The Bain Capital AI Fund does not seek to invest in pure AI companies, according to the report, despite the growing importance of generative AI tools in improving enterprise productivity. Abrahamson emphasized that while nearly every company in the portfolio leverages AI tools, the fund focuses on established businesses rather than early-stage AI startups.

Bain Capital’s technology fund has a dedicated team based in Europe and is looking for global talent and founders to partner with, according to the report. The fund aims to identify companies around the world with growth potential and provide them with the support and resources they need to reach the next level.

“Our job is to go find these founders. Often they’re not where you’d expect them to be, but they’re quietly building incredible businesses.” Abrahamson said. “And eventually they will reach a size and scale where they want partners like us to help them scale and grow.”

This report comes at a time when AI has become a central focus of society. investment pitch. At the same time, some investors say AI success stories are the exception, not the rule. Overvalued sectors.