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Morphais AI VC Fund: Berlin's Edge in Early-Stage Investing

February 25, 2021
Morphais AI VC Fund: Berlin's Edge in Early-Stage Investing

MorphAIs: An AI-Driven Venture Capital Approach

MorphAIs, a newly established venture capital firm based in Berlin, is focused on utilizing artificial intelligence to enhance its investment strategies within the early-stage startup landscape.

Founding and Background

The firm was founded by Eva-Valérie Gfrerer, whose prior experience includes leading growth marketing efforts at the fintech company OptioPay.

Gfrerer’s expertise lies in the fields of behavioural science and advanced information systems, providing a strong foundation for her current venture.

Evolution of the Business Model

Initially, Gfrerer envisioned MorphAIs as a technology company, developing AI-powered tools for assessing venture investments and offering these as a service.

However, she subsequently determined that the platform could be more effectively utilized as an internal fund, leading to the current fundraising efforts.

Early Backers and Support

MorphAIs has already secured initial financing from a group of experienced serial entrepreneurs, including:

  • Max Laemmle, CEO & founder of Fraugster, with previous roles at Better Payment and SumUp.
  • Marc-Alexander Christ, co-founder of SumUp, formerly with Groupon (CityDeal) and JP Morgan Chase.
  • Charles Fraenkl, CEO of SmartFrog, and previously CEO at Gigaset and AOL.
  • Andreas Winiarski, chairman & founder of awesome capital Group.

A Vision for Innovation in Venture Capital

Gfrerer asserts that the venture capital allocation process has remained largely unchanged for decades.

She believes that MorphAIs’ technology has the potential to revolutionize these processes, fostering more precise capital allocation and a more equitable startup ecosystem.

Addressing Industry Challenges

It is noted that a significant percentage – over 80% – of early-stage VC funds fail to achieve the minimum expected return for their investors.

While acknowledging this reality, it’s understood that the VC model inherently involves accepting numerous losses in pursuit of a few highly successful investments.

Fundraising Goals and Team

The company is now targeting a pre-seed/seed fund, supported by a team comprised of machine learning scientists, mathematicians, and behavioral scientists.

MorphAIs claims to be demonstrating consistent 16x return rates through real-time predictions based on current market data.

Technical Leadership

Jan Saputra Müller serves as the CTO and co-founder of MorphAIs, bringing experience from his previous role as co-founder and CTO of several machine learning companies, including askby.ai.

Competitive Landscape

The approach taken by MorphAIs is not entirely novel.

For example, InReach Ventures, based in London, has also prominently featured the use of data in its startup discovery process.

Furthermore, many other venture capital firms across Europe are employing similar data-driven strategies to varying degrees.

Future Outlook

The ultimate success of Gfrerer’s vision remains to be seen.

Only time will reveal whether MorphAIs can achieve significant breakthroughs in the venture capital industry.

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