Foster Sisters Take Bold Stand: Why These Creative Moguls Are Hesitant About AI Investment
In a surprising revelation at TechCrunch Disrupt 2024, the dynamic duo behind Oversubscribed Ventures, Sara and Erin Foster, openly shared their unconventional approach to AI investment, sparking discussions across the tech industry.
“I don’t even have ChatGPT on my phone,” Sara Foster candidly admitted during Monday’s session, drawing attention from the packed audience. This statement might raise eyebrows in the venture capital world, especially considering ChatGPT’s revolutionary impact on the tech landscape.
The Foster sisters bring a refreshingly different perspective to the investment world. Their strength lies in their diverse background—they’re not your typical Silicon Valley investors. Instead, they’ve built their empire through creative ventures, including their successful clothing line Favorite Daughter and their popular podcast.
Erin Foster, who created the hit Netflix show “Nobody Wants This” starring Kristen Bell, brings her entertainment industry expertise to the table. Her recent experience with the writers’ strike has shaped her views on AI in creative industries. “We did a strike over this last year,” she explained, referencing the clever protest signs, including the memorable “ChatGPT doesn’t have childhood trauma.”
The sisters maintain a practical approach to investment decisions. “If we don’t understand it, we don’t invest in it,” Sara emphasizes, highlighting their commitment to authenticity in the venture capital space.
This philosophy extends to their fund’s name, Oversubscribed Ventures, which they chose with a touch of humor, acknowledging their unique position in the investment world.
While they haven’t completely dismissed AI, their cautious approach stems from real-world observations. Erin has experimented with ChatGPT in the writers’ room, notably for generating creative names like “The Matzo Ballers” for a Jewish basketball team.
However, she maintains a balanced perspective: “ChatGPT came up with that, but it can’t write a script… I think it can be pointless in some areas, and I’m sure it’s evil in some areas.”
Their investment portfolio reflects their consumer-focused strategy, ranging from boxed wine startups to the NFT marketplace OpenSea. The sisters leverage their understanding of consumer behavior and their extensive network across entertainment, fashion, and media to add value to their investments.
“We’re of no value if we just have oversubscribed ventures,” Sara explained. “Our value is the flywheel—it’s the ecosystem. It’s the same world that’s buying Favorite Daughter, listening to the podcast, watching the TV show.”
The Foster sisters’ approach challenges traditional venture capital norms. While they might not be experts in artificial intelligence, they excel in understanding consumer behavior and cultural trends.
Their success proves that sometimes staying true to one’s expertise and maintaining a degree of skepticism towards new technologies can be a viable investment strategy.
As the tech world continues its rapid evolution, the Foster sisters’ perspective offers a valuable reminder: authentic understanding and genuine expertise in one’s field might be more valuable than jumping on every technological bandwagon. Their story suggests that sometimes the best investment strategy is knowing when to say “not yet” to even the hottest trends in tech.