We will come up with a new logo in the future!
Before we get into it, I’ll be attending a Search, HoldCo, Indy Sponsor happy hour this Thursday (tomorrow) in NYC. If you are building or investing in the ecosystem, sign up here (free but limited space). Would love to hang out with you in person.
Hi all – this is part 3 of the 4-part pilot series on AI for private equity. You can find part 1 here and part 2 here.
First off, we appreciate all the feedback. One questions for you: would you like us to continue the AI series? We have a lot more (advanced) topics we can cover, but would love to get your thoughts! Reply or comment on the survey at the bottom.
Let’s dive into today’s topic. A basic but important fundamental: writing better prompts (for investors).
State of Play
Hi I’m Davis—an ex-PE investor who’s spent the last two years building and deploying AI tools across the world's largest investment banks, hedge funds, and private equity firms. Every Wednesday, Edwin and I will be closing the gap in AI knowledge in PE, one use case at a time.
We asked AI to identify risks in a sample Bessemmer investment memo into Twitch (note: while we do have PE CIMs, we use this publicly available VC memo to avoid legal liabilities). The first response just repeated risks mentioned in the memo.
The second response uncovered fundamental holes in the memo and points to diligence further.
We didn't change the model or the document. We changed one thing: how we asked the question. Prompt engineering is a skill, and we think all investors should practice that skill.