Deven Parekh, co-leader of Insight Partners for over 25 years, shared insights into the firm's investment philosophy during a recent TechCrunch event in New York. Unlike many venture capitalists who actively promote their views on social media, Parekh emphasizes a quieter approach focused on letting portfolio performance speak for itself.
Insight Partners manages $90 billion in assets and invests across early-stage, growth, buyouts, and secondaries globally. Parekh explained that the firm does not maintain fixed allocations by stage or geography, adapting to market conditions and opportunities. For example, buyouts have been less attractive recently due to high interest rates and lower exit multiples.
Regarding the current AI investment boom, Insight Partners holds stakes in major players like OpenAI and Anthropic but maintains a diversified portfolio rather than concentrating heavily in a few companies. Parekh noted that while some funds allocate a large portion of capital to these AI leaders, Insight prefers spreading risk over many investments, a strategy that has historically yielded better long-term returns.
Parekh also addressed concerns about AI risks, acknowledging potential dangers but emphasizing the technology's positive impact, particularly in healthcare. As a board member of NYU Langone, he highlighted AI’s ability to analyze vast patient data to predict health risks, underscoring AI’s role in addressing challenges like an aging population and limited medical professionals.
The firm’s investment decisions also reflect the geographic distribution of talent, with AI infrastructure concentrated in San Francisco, while vertical AI applications like financial services are more dispersed. Insight competes globally, illustrated by its pursuit of companies such as the Swedish legal-tech startup Legora.
On internal dynamics, Insight has invested in both OpenAI and Anthropic, a practice once considered taboo. Parekh explained that such dual investments occur primarily at later stages when governance influence is limited, and that early-stage investments avoid direct competition due to information-sharing restrictions.
Physical AI and robotics remain areas of interest but are viewed as longer-term bets, given the current stage of technology and adoption uncertainty.
Parekh also discussed the importance of liquidity for limited partners, noting Insight’s recent returns of over $20 billion through sales and IPOs. He encourages founders to consider de-risking their holdings during frothy market conditions, though timing remains unpredictable.
Looking ahead, Parekh expects more AI companies to go public, following the examples of Anthropic, OpenAI, and SpaceX, which have reached significant valuations quickly. However, he cautions that sustained high growth rates are unlikely indefinitely, and public markets will play a key role in the next phase of expansion.
Overall, Insight Partners’ approach contrasts with the current trend of concentrated AI bets, favoring a diversified portfolio to manage risk and capitalize on a broad range of opportunities across sectors and geographies.