Deven Parekh, co-leader of the $90 billion investment firm Insight Partners, shared insights on the firm’s investment approach in an in-depth discussion at TechCrunch’s StrictlyVC event. Unlike many venture capitalists who heavily focus on a few frontier AI companies such as OpenAI and Anthropic, Insight Partners purposely maintains a diversified portfolio. Parekh emphasized that diversification across different sectors and stages is essential to managing risk and generating sustainable returns over many fund cycles, rather than concentrating capital in a handful of headline-grabbing AI labs.

Insight Partners invests broadly, spanning early-stage startups to buyouts, though they have recently pulled back on buyouts due to unfavorable market conditions like high interest rates and shrinking exit multiples. In venture rounds, Parekh noted a shift toward earlier-stage investments where valuations and follow-on risk are more favorable. He explained how their strategy allows smaller initial checks with the option to double down on high-performing companies, citing their investment in the cybersecurity startup Wiz as an example where incremental follow-on investments significantly boosted returns.

Geographically, Insight adopts a global stance, with investments aligned to talent hubs appropriate for different verticals. Parekh cited AI infrastructure talent as concentrated in San Francisco, while financial services AI is centered more in New York. The firm is comfortable holding stakes in competing AI companies—such as both OpenAI and Anthropic—particularly when investing in later stages where governance roles are limited. This contrasts with earlier-stage deals where Insight maintains strict boundaries to avoid conflicts of interest.

Regarding market dynamics, Parekh addressed concerns about the concentration of investment capital in the top AI firms, explaining that while some venture funds place a large share of capital into companies like OpenAI and Anthropic, Insight believes the data favors a diversified approach over the long term. He also underscored the importance of liquidity for limited partners, revealing that Insight has returned over $20 billion through sales and IPOs recently. As IPOs for large AI companies loom, Parekh anticipates more public listings in the next 18 months, which could set new benchmarks for valuations and growth expectations in the evolving AI ecosystem.