Why the Foster Sisters Are Holding Back on Investing in AI — and Why It Matters to Them

Sara and Erin Foster, the creative minds behind Oversubscribed Ventures, had a candid moment onstage at TechCrunch Disrupt 2024, surprising the crowd with a simple confession. "I don’t even have ChatGPT on my phone," Sara admitted. For two venture investors in a tech-dominated world, this might sound unusual, especially with how significant tools like ChatGPT have become. But what sets the Foster sisters apart is their unique blend of creativity and authenticity; they’re artists and creators first, and investors second.

The Foster sisters are known for co-founding the clothing brand Favorite Daughter, leading creative campaigns for Bumble Bizz and Bumble BFF, and hosting a popular podcast together. Erin even created the hit Netflix series Nobody Wants This with Kristen Bell. Standing on stage, Erin shared a glimpse into their unconventional journey. “Even calling it Oversubscribed Ventures was a joke for us. We know this isn’t really our world," she said, laughing. "We’re not here to play the part of fund managers. We’re just bringing ourselves and our unique perspective into this space. We're here to be honest and real.”

In keeping with that honesty, the sisters also explained why they’ve stayed cautious about AI. “If we don’t understand it, we don’t invest in it,” Sara explained simply. For Erin, a writer herself, AI hits closer to home. "We were on strike over this last year," she shared, referring to how generative AI is affecting creators. During the strike, Erin recalled the clever signs writers held up, like “ChatGPT doesn’t have childhood trauma,” highlighting how AI lacks the human depth behind genuine storytelling.

Yet, Erin is no stranger to using AI in small ways. In the writer’s room, she’s even asked ChatGPT for ideas, like coming up with the name “The Matzo Ballers” for a fictional Jewish basketball team. “ChatGPT helped with that, sure, but it can’t write a whole script,” she explained. “You see movies made by AI, and they just feel… off. There’s good potential, sure, but there’s also a lot of empty noise, and sometimes even a bit of an ‘evil’ vibe in how it’s being used.”

Sara added with a shrug, “We’ve looked at some AI companies; one almost got our investment, but it didn’t feel right. And I still haven’t downloaded ChatGPT...yet.”

Even with this reluctance, the sisters' unique approach to investing is exactly what makes them appealing. When asked what value they bring to founders, Erin joked, “They can hang out with us.” Beneath the humor, though, there’s a truth: Oversubscribed Ventures invests in consumer-focused startups, from boxed wine to NFTs, and they know what resonates with real people. “Our real value is the whole ecosystem,” Sara explained. “It’s not just the venture fund. It’s the same world that’s buying Favorite Daughter, listening to our podcast, and watching the show.”

So while the Fosters may not have ChatGPT on speed dial, they certainly understand what makes people care. And that’s the magic behind their investments.