AI of the Tiger

Investors are pouring money into AI startups with AI deals accounting for 71% of VC funding in Q1. It’s a goldrush. The technology is reshaping white-collar work and accelerating at a staggering pace. But venture capital now faces a fork in the road:

Chase every potential power law winner, paying whatever it takes to avoid missing out.
Invest non-consensus, targeting differentiated returns by going where others won’t.

The surge in AI deals and valuations is unprecedented. To justify them, you have to believe in new markets, new revenue streams, and new venture math. For the elite few, that’s possible. For the rest, history tells us speculative bubbles eventually pop when results fail to match the capital inflows.

So where do we stand? We’ve built selective exposure to specialized, agentic AI that can accelerate climate solutions. But we’re putting all software investments through a tougher lens: do they unlock an entirely new growth paradigm, or are they easily disrupted by AI?

Meanwhile, climatetech is being rattled by U.S. policy headwinds. Many investors are backing away. We see this as a chance to make high-conviction, non-consensus bets on what the future will undeniably require (and that are hard to displace with AI).

In short: we’re long climate, with AI exposure where it strengthens the case.