A venture capital firm, NFX, laid off four employees in September as the firm seeks to "rebalance" its resources from its software and product teams to its investing team, general partner Pete Flint told TechCrunch.

The layoffs included one product leader and three engineers, Flint said. About a week ago, Amy Lin, chief product officer since 2017, announced that she had left the firm on LinkedIn.

NFX built and runs its own internal software to find and evaluate companies, but, Flint said, the firm has recently found that it can use AI to do the same level of output with less people. Flint said the firm's product and engineering teams remain large and that the firm's investing team wasn't affected.

In fact, the company intends to invest the released resources from the layoff by doubling the investment team. Flint said NFX is looking to hire new folks for the investment team in both San Francisco and in Israel.

NFX also promoted several members of its current team. In July, the firm promoted Sarai Bronfeld from principal to partner. Bronfeld has been with NFX since 2021 and is located in Tel Aviv. The firm promoted Daniel Museles to principal. Museles joined the firm as an associate in 2022 and is based in San Francisco.

The firm could end up with more people on the overall NFX team than it had before the rebalance, Flint said. That's the focus for us, the investment team, which has worked really well, Flint said. "We will still do software and product. We have had great success. The investment team is going to increase 20%, that's really the focus for us.".

NFX is a 2017 San Francisco-based firm that has made investments in pre-seed and seed-stage companies by categories including but not limited to biotech, gaming, generative AI, and fintech, among many others. It is one of the early VCs to approach venture investing with a software and data-driven strategy. NFX has raised nearly $1 billion across three early-stage funds and one opportunity fund. Some notable unicorns or stocks where the firms backed are Lyft, Mammoth Biosciences, Doordash, and more.

NFX is not alone, of course, among venture firms who have reshuffled resources and cut personnel. Just last week, Initialized Capital said it was letting go of multiple partners and investment support staff. TechCrunch estimated the firm had trimmed its staff by 36%. Greylock reduced its investor count by five last fall. Sequoia Capital cut a third of its platform team in 2023.