Nvidia (NVDA) shares have soared thanks to its early investment in artificial intelligence. Now, investors are constantly on the lookout for the next Nvidia-like stock, especially as the buzz around AI also continues to be the center of discussion on Wall Street.

Costanoa Ventures Partner Martina Lauchengco, an early investor in startups, joins Yahoo Finance to discuss where the next round of innovation will come in the AI sector.

Lauchengco affirms what’s the most important factor in investing in AI-based companies: “For sure the team is the most important thing, you have to assess that through references, but the bar has just become higher. There was $11.5 billion invested into the seed stage last year, but thats down from its peak from a couple of years ago. So we always want to make sure is this a team that knows how to learn and adapt quickly.”

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor’s note: This article was written by Nicholas Jacobino