What Daniel Nikic’s Cohres Brings to the Global Venture Capital Market
The venture capital world is experiencing a seismic shift. As tech valuations soar into the billions and AI companies multiply by the thousands, the traditional Silicon Valley playbook is showing its age.
Gone are the days when pattern matching and “gut feelings” could guide billion-dollar investment decisions. In this new landscape, thorough research and global perspective aren’t just advantages – they’re necessities for survival.
Enter Daniel Nikic, who has quietly revolutionized how venture capital firms evaluate AI investments. As the founder of investment research firm Cohres, Nikic brings an unconventional background to the VC world. Rather than following the well-worn path through Silicon Valley, he cut his teeth analyzing real estate markets during the 2009 financial crisis, developing a methodical approach to market analysis that would later prove invaluable in the AI boom.
The numbers speak for themselves. After analyzing over 15,000 of which over 8,000 were specifically AI focused companies and advising leading American VC funds, Nikic has developed a research methodology that challenges traditional investment approaches. His firm, Cohres, has become a trusted advisor to AI-focused venture funds, offering something increasingly rare in today’s hyped-up tech market: insights based on rigorous analysis rather than industry buzzwords.
Beyond Traditional Due Diligence
“When evaluating AI companies, we look at their competition and what’s the product? How do they come up with that idea?” Nikic explains. This seemingly straightforward approach belies a deeper methodology that has proven particularly valuable in the AI and technology sectors. Through his work with American AI funds, Nikic has developed a comprehensive framework that goes beyond traditional metrics.
The value of this approach became evident during the 2021 market bubble. “I think the VC market had a bubble in 2021 and then it popped,” Nikic observes. “But I think it’s somewhat good too because it was kind of like, as you say, in some recessions, it cleans up… the unrealistic valuations.” This perspective highlights Cohres’ role in helping investorsnavigate market cycles while maintaining focus on fundamental value.
The Global Perspective
Operating outside traditional venture capital hubs has given Daniel Nikic unique insights into emerging opportunities. “Europe, London definitely is a financial capital I would say in Europe when I see the VC market. But there are interesting markets like Germany because Germany has such a big population too, and they’re quite innovative,” he notes.
This global perspective extends to emerging markets, particularly Saudi Arabia, where Nikic sees parallels with Silicon Valley’s early days. His approach involves connecting with high-net-worth individuals actively seeking to diversify their investments beyond traditional assets, creating bridges between emerging technologies and established wealth.
Creating Value Beyond Capital
aligns with a deeper understanding of venture capital’s role. “With a VC, you get the networking, you get the BMO, you get the insight, and you get the mentoring,” he explains. “Obviously there’s a cost rate ownership, and if they have voting rights, they can kick you out. So I think a lot of people are not saying VCs gambling, not all startups succeed, but I think they also create a lot of jobs too because those that succeed, they really succeed.”
This holistic view of venture capital’s impact shapes how Cohres approaches research and advisory services. Rather than focusing solely on financial metrics, the firm emphasizes understanding the complete ecosystem surrounding potential investments.
Innovation and Patent Strategy
One of Cohres’ distinctive contributions has been its emphasis on patent analysis in technology investments. “One thing I noticed when evaluating a lot of AI companies was the main parents will look at the patents and what’s the exits,” Nikic shares. “Because they’re like, yeah, they might not generate revenue right now and there’s so much cost to R&D, but it could be a Cisco Qualcomm or someone to acquire them.”
This focus on intellectual property and strategic value has proven particularly relevant in the AI sector, where traditional revenue metrics might not fully capture a company’s potential.
Building Trust Through Expertise
Cohres’ success in the venture capital market stems partly from Daniel Nikic’s relationship-building approach. “I’m not your employee so you don’t have to worry about salary fees or anything. You could cut me off whenever you want,” he explains, describing his pitch to potential clients. This transparency and deep technical expertise have helped establish Cohres as a trusted partner for venture capital firms and investors.
The firm’s methodology often includes providing initial research at no cost, allowing potential clients to evaluate the quality of insights before committing. This approach has proven particularly effective in building long-term relationships with both venture capital firms and high-net-worth individuals.
Navigating Market Cycles
In today’s market environment, Nikic sees both challenges and opportunities. The recent cooling of valuations, particularly in the AI sector, has created conditions where thorough research and due diligence become even more crucial. “I think it wasn’t good because it wasn’t fair to other companies who probably did not have the right network and stuff to compete,” he reflects on the previous period of inflated valuations.
This perspective has helped Cohres guide clients through market fluctuations while maintaining a focus on fundamental value creation and sustainable growth.
The Future of Venture Capital
Looking forward, Nikic sees venture capital continuing to evolve, particularly in how it approaches technology investments. His experience analyzing thousands of AI companies has provided unique insights into emerging trends and opportunities. The increasing importance of global perspectives and cross-border investments aligns well with Cohres’ approach to market analysis.
The firm’s expansion into emerging markets like Saudi Arabia represents a broader trend in venture capital – the growing importance of connecting global capital with innovation wherever it occurs. As Nikic observes, success in venture capital increasingly requires understanding not just technology and markets, but also cultural and regional dynamics.
For entrepreneurs and investors navigating the venture capital landscape, Cohres’ approach offers valuable lessons. The emphasis on thorough research, understanding of patent strategy, and appreciation for global opportunities provides a framework for evaluating investments in an increasingly complex market.
As venture capital continues to evolve, firms like Cohres that can combine deep technical analysis with global perspective and relationship-building will play an increasingly important role in shaping the future of technology investment. Nikic’s vision of research-driven, relationship-based venture capital offers a compelling model for success in this changing landscape.
