Insight Partners’ Devin Parekh Defends Diversified Strategy Amid AI Investment Frenzy

At one outlet’s StrictlyVC gathering in New York, Insight Partners co-leader Devin Parekh detailed why the firm maintains a diversified investment mix while many venture firms pile into frontier AI labs. He highlighted notable wins, including leading rounds for Databricks and holding positions in OpenAI and Anthropic, and noted losses such as the Legora deal to General Catalyst. Parekh warned that rapid AI financing offers little incremental data, prompting Insight to favor smaller, earlier bets that have generated outsized returns, as seen with its continued backing of Wiz.

He described the firm’s flexible allocation across early-stage, growth, and buyout investments, noting that buyouts have slowed due to high rates and weaker exit multiples. Regarding liquidity, Insight has returned over $20 billion to LPs through secondary sales and IPOs and expects a wave of AI-related public listings, including Anthropic, within the next 18 months. He concluded that diversification across funds and sectors remains the prudent long-term approach for both the firm and its investors.