Differential Ventures is led by practicing data scientists including co-founder David Magerman from Renaissance Technologies, who built the firm "by data scientists and entrepreneurs for data-focused entrepreneurs" to provide unusually deep technical expertise in data infrastructure and ML compared to most early-stage VCs. Despite their quantitative backgrounds, they argue "you cannot apply data science to VC investing" and instead emphasize judgment and relationships, while specializing exclusively in AI-native B2B data companies through a concentrated $60M fund that provides hands-on technical guidance on model architecture and data strategy rather than typical board-level oversight.