In a move that’s sending shockwaves through Europe’s venture capital landscape, Borys Musielak, Founding Partner at SMOK Ventures, has announced he’s joining No Cap as a co-founder—the world’s first AI angel investor that recently made headlines by autonomously wiring $100,000 to a startup.
Breaking the Traditional VC Model
Musielak’s announcement on LinkedIn pulled no punches about his motivations: “Let’s be real: the VC industry is f***ed up. The sooner we admit it, the better. So I’m jumping ship early—better to be the disruptor than wait around to be disrupted.”
His critique targets pain points familiar to founders across Central and Eastern Europe’s tech ecosystem:
- The fundraising marathon of pitching hundreds of funds
- Constant ghosting and communication black holes
- Decision processes that drag on for months
- A fundamental lack of transparency between entrepreneurs and investors
The AI Investor That’s Changing the Game
No Cap, co-founded by Alexander Nevedovsky and Jeff Wilson, is making waves as an AI-powered angel investor that’s eliminating traditional fundraising friction. “No cold emails. No wasted time. Just instant, AI-powered investment decisions,” according to recent coverage.
In a case that’s gone viral across tech circles, No Cap demonstrated its capabilities by moving from initial pitch to wiring $100,000 in just days. “Within just a few days, No Cap moved from an initial introduction to signing a SAFE agreement, wiring $100,000, introducing five new investors, and even providing a hiring lead—all within a single three-minute closing call.”
From VC to AI Pioneer: Musielak’s Journey
Musielak’s jump from traditional VC to AI investing represents a profound shift for one of CEE’s most influential tech investors. With a background as an entrepreneur who sold his startup Filmaster to Samba TV and co-founded Poland’s first coworking space for startups (Reaktor), he brings substantial ecosystem credibility to the No Cap team.
Borys Musielak, Founding Partner at SMOK Ventures, Co-Founder at No Cap
“As CEE, we are an obscure market… We should be doing a lot of marketing, and we shouldn’t be doing national marketing because no one cares about Poland or Bulgaria,” Musielak previously noted about the region’s challenges, suggesting that technologies like AI could help CEE startups overcome historical geographic disadvantages.
The “No Cap Mafia”: Building a New Investment Paradigm
The No Cap team isn’t operating in isolation. They’ve assembled what they call the “No Cap Mafia”—a community of over 60 Y Combinator alumni founders who are training the AI to ensure “she’s always there for coaching/advising and, most importantly, the ‘dirty work’ like intros for fundraising, biz dev, hiring, PR, and more.”
Musielak clarified that while making this bold move, he’s “staying as an advisor till Diana & Paul find a replacement” at SMOK Ventures and remains focused on supporting their existing portfolio companies.
What This Means for ITKey.Media Readers
For CEE’s tech ecosystem that ITKey.Media covers, this development signals several transformative possibilities:
- Democratized Access: AI-powered investment platforms could level the playing field for CEE founders who have historically struggled with accessing Western European and American capital.
- Reduced Bias: Algorithmic investment approaches may help overcome geographic and cultural biases that have limited investment in the region.
- Speed to Market: For time-sensitive startups, cutting fundraising timelines from months to days could provide crucial competitive advantage.
- Transparent Feedback: Even startups that don’t receive investment could benefit from structured, immediate feedback rather than silent rejection.
A Polarizing Vision
Reaction to Musielak’s announcement has been mixed, with excitement, skepticism, and humor all evident in responses. Some commenters highlighted how AI could finally solve endemic problems in venture funding, while others questioned whether AI can truly evaluate the human elements that make startups successful.
As one prominent VC observed in response to the announcement: “Curious if NoCap truly understands the founder’s story, resilience, and vision beyond execution… their story, grit, and passion, which somehow has been part of a human sense Angel Investors develop over time?”
The Future of Venture?
With No Cap claiming to be “the future of venture: finally putting an end to the fundraising dread of 1,000s of emails, 100s of calls, and only a few wired checks,” Musielak’s move signals that we’re witnessing the beginning of a profound shift in how startups and capital connect.
Whether AI investors represent the future of venture capital or simply another tool in the ecosystem remains to be seen. What’s clear is that the traditional VC model faces growing pressure to evolve, particularly in regions like CEE where access to capital has historically been more challenging.
For founders across Central and Eastern Europe—and the growing audience of ITKey.Media—these developments demand close attention as they could fundamentally reshape how the next generation of startups secure both funding and strategic guidance.
ITKey.Media will continue monitoring this story as it develops.
