Insight Partners' Devin Parekh Discusses Diversified Investment Strategy Amid Rising AI Focus
Devin Parekh, co-founder of Insight Partners, discussed the firm's diversified investment strategy during a TechCrunch interview at its StrictlyVC event. While many venture capital firms are heavily investing in frontier AI labs like OpenAI and Anthropic, Insight has maintained a broader approach across early-stage, growth, buyout, and secondary investments. Parekh emphasized that high valuations and fast-moving rounds have increased risk without sufficient data to justify higher prices, prompting the firm to focus on smaller bets with room for scaling winners. Parekh also addressed concerns around AI risks but expressed optimism about its potential in healthcare innovation, citing examples from NYU Langone. He noted Insight's $90 billion AUM and a preference for letting portfolio performance speak rather than aggressive public relations efforts. The firm has not pursued major buyouts since 2024 due to high interest rates and unfavorable debt markets. Geographically, while Insight invests globally, AI infrastructure talent remains concentrated in San Francisco. Despite losing deals like Legora to other VCs, Parekh believes a diversified strategy is key for long-term returns.
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Topics: AI Insight Partners Investment Strategy Venture Capital