Chennai: AI startups seem to be bucking the trend as ChatGPT and generative AI lure India Inc. despite a funding winter looming in the startup ecosystem. Deep technology, especially AI, is emerging as the darling of venture capitalists (VCs) in its early stages. Financing.
According to data obtained from research firm Venture Intelligence, the share of VC investment in AI startups is equivalent to 15% of total VC funding in the first five months (January to May) of 2023, but by 2022 AI startups will account for 10% of the market. is shown.
Against the backdrop of the severe economic environment in 2023, overall VC investment is sluggish, and as a result, AI investment is 114 in 2022 (equivalent to 2.4 billion dollars), and 500 million dollars in 2023 (January to May). Only 28 cases were reported.
But the rising share of AI investment over the past three years reflects investors’ bullish stance on AI, industry trackers and investors told TOI. Growing interest in and trading activity in AI in the US is also mirrored in the Indian ecosystem, with more AI-centric ideas from existing and new start-ups, they said.
In addition to Microsoft’s backing, this year’s major AI deals include AI-powered software composer Builder.ai raising $250 million from the Qatar Investment Authority. The round doubled the valuation of the startup. Enterprise AI player Mad Street Den has raised $30 million in a Series C round led by Avatar Growth Capital.
Exfinity Fund (3 deals), Peak XV Partners (2, formerly Sequoia India), and Lightspeed Ventures (2) topped the tally of VC investors making the biggest bets on AI in 2023.
Speciale Invest’s Vishes Rajaram says many entrepreneurs are looking for ways to leverage AI to enhance their business proposition. “Some companies are doing this to prevent AI from destroying their products, while others are doing it as a fad,” he added.
3One4 Capital has a similar theory when it comes to investing. “The best teams are thinking about AI right now, and teams with unique insight and strong execution capabilities are the ones who are making the most money, especially in the pre-seed and seed stages,” said Sonal Saldanha, vice president of investment at 3one4 Capital. I’ve seen them procure the
India-only funds now hold tens of billions of dollars in dry powder, suggesting a steady stream of early-stage deals can be expected in the coming months. Arun Venture Intelligence founder Natarajan said: “In that situation, tailwind areas such as AI and electric vehicles (EVs) will be the first beneficiaries,” he added.
According to data obtained from research firm Venture Intelligence, the share of VC investment in AI startups is equivalent to 15% of total VC funding in the first five months (January to May) of 2023, but by 2022 AI startups will account for 10% of the market. is shown.
Against the backdrop of the severe economic environment in 2023, overall VC investment is sluggish, and as a result, AI investment is 114 in 2022 (equivalent to 2.4 billion dollars), and 500 million dollars in 2023 (January to May). Only 28 cases were reported.
But the rising share of AI investment over the past three years reflects investors’ bullish stance on AI, industry trackers and investors told TOI. Growing interest in and trading activity in AI in the US is also mirrored in the Indian ecosystem, with more AI-centric ideas from existing and new start-ups, they said.
In addition to Microsoft’s backing, this year’s major AI deals include AI-powered software composer Builder.ai raising $250 million from the Qatar Investment Authority. The round doubled the valuation of the startup. Enterprise AI player Mad Street Den has raised $30 million in a Series C round led by Avatar Growth Capital.
Exfinity Fund (3 deals), Peak XV Partners (2, formerly Sequoia India), and Lightspeed Ventures (2) topped the tally of VC investors making the biggest bets on AI in 2023.
Speciale Invest’s Vishes Rajaram says many entrepreneurs are looking for ways to leverage AI to enhance their business proposition. “Some companies are doing this to prevent AI from destroying their products, while others are doing it as a fad,” he added.
3One4 Capital has a similar theory when it comes to investing. “The best teams are thinking about AI right now, and teams with unique insight and strong execution capabilities are the ones who are making the most money, especially in the pre-seed and seed stages,” said Sonal Saldanha, vice president of investment at 3one4 Capital. I’ve seen them procure the
India-only funds now hold tens of billions of dollars in dry powder, suggesting a steady stream of early-stage deals can be expected in the coming months. Arun Venture Intelligence founder Natarajan said: “In that situation, tailwind areas such as AI and electric vehicles (EVs) will be the first beneficiaries,” he added.
