AlphaFund’s Post

AI in 2024: A Year of Innovation and Investment - Unveiling the Funding Landscape When an artificial intelligence (= a computer system that has some of the qualities that the human brain has, such as the ability to produce language in a way that seems human) hallucinates, it produces false information.' The impact of AI on the online world has been monumental in the past year, so much so, that AI is starting to embody some exclusively human words, like “hallucinate”. Even those who are not particularly tech savvy have by now heard of ChatGPT, or at the very least, that something is up with AI. In 2023, venture dollars truly flowed in heaps to this sector without much restraint, but will AI continue to stay hot on the VC radar for 2024, and what trends can we expect to see? Let’s take a look. The Figures First off, let’s do a quick recap on the AI companies that raised the most money in 2023: OpenAI - raised $10 billion Anthropic AI - raised $4 billion Inflection AI - raised $1.3 billion According to AltIndex, the global AI industry has more than doubled its value in just three years to a massive $240 billion, along with a quarter of a billion users worldwide. This has prompted investors to bet on AI and inject billions of dollars in the hopes of making that 10x return. Although 2023 was mostly the year of OpenAI (ChatGPT reached 100 million users in just two months), AI funding was already hot on the investor radar in late 2022, with Stability AI, Descript, and Jasper all raising huge funding rounds. Even teenagers were raising money for their AI startups, with AI companies raising a total of $50 billion in funding in 2023, which was actually still less than the all-time high of $78.5 billion in 2021. What’s interesting about these figures is that despite the increased total funding amount, the number of investments was lower in 2023 than in 2022. Whereas the total number of VC investments in 2022 reached 1,101, that number went down to 842 in 2023. This means that AI companies secured more capital with fewer funding rounds. https://lnkd.in/dJMxquzt By @ Ivelina Niftyhonta

Exciting news in the tech world! AI startups have raised an impressive $100M in 2024. These trailblazing companies are at the forefront of innovation, pushing the boundaries of what's possible with artificial intelligence. Learn more about the key players and their game-changing projects. . Learn more: https://lnkd.in/daT-R3sE . #AI #Startups #Funding #Investment #Technology

How to Launch Your AI Startup in 12 Steps - Exclusive Report | Cryptopolitan: AI's remarkable progress is reshaping industries, creating entrepreneurial ventures, and driving innovation. Creating a successful AI startup requires identifying market needs, acquiring expertise, developing a unique solution, building a prototype, managing data, refining algorithms, formulating a business plan, securing funding, assembling a diverse team, launching a pilot program, and scaling the startup. - Artificial Intelligence topics! #ai #artificialintelligence #intelligenzaartificiale

Artificial intelligence and venture capital investments. In a new paper with Annalisa Croce and Benedetta Montanaro, we explore whether and to what extent investments in AI ventures differ from those in similar non-AI ventures, and whether they are moderated by venture-level, country-level, and investor-level factors. We test our hypotheses on a sample of 5235 investments in 2689 AI ventures and 9215 investments in 4373 non-AI ventures belonging to the Industry 4.0 domain, observed from 2000 to 2019. We find that the amount invested in AI ventures is significantly lower than non-AI ones: this negative relationship is, however, moderated by a venture’s development stage, VC investor’s experience and the AI development level of the country in which the invested venture operates. The paper is open-access! #venturecapital #AI https://lnkd.in/d5Szcim9

The generative AI landscape: Top startups, venture capital firms, and more The State of Generative AI in 7 Charts Are you curious about the latest trends in generative AI? Here's what you need to know: Funding Trends: Generative AI startups have experienced a funding boom in 2023, with equity funding surpassing $14.1B across 86 deals in the first half of the year alone. This indicates a growing interest and investment in this technology. Company Breakdown: Among the 360+ generative AI companies identified, 27% have not raised any outside equity funding yet, highlighting the untapped potential in the market. More than half of these companies are still in the early stages, with Series A or earlier funding. Investor Focus: The generative AI infrastructure category has attracted over 70% of funding since Q3'22, despite accounting for only 10% of all generative AI deals. Investors are particularly interested in foundational models, APIs, MLOps, and emerging infrastructure like vector database tech. Cross-Industry Applications: A significant portion (25%) of generative AI funding since Q3'22 has been directed towards cross-industry applications. These applications encompass text and visual media generation, as well as generative interfaces, indicating their potential for widespread adoption. Emerging Focus Areas: Within the generative AI space, companies developing generative interfaces have received the most funding. These include productivity and knowledge management, general search, and AI assistants. They have raised an impressive $2.7B in equity funding across 23 deals since Q3'22. Top Valuations: OpenAI renowned for its AI research lab and ChatGPT leads the pack with a $10B corporate minority round. Other notable startups with high valuations include ($1.3B Series B), Anthropic ($850M across a Series C and corporate minority round), Adept ($350M Series B), and Cohere ($270M Series C). Headcount Growth: Startups developing generative AI models and technologies have been rapidly expanding their teams. Notable startups with significant headcount growth include OpenAI, Inflection AI, Anthropic, Adept and Cohere Are you excited about the potential of generative AI? Stay tuned for more developments as this technology continues to evolve. Share your thoughts and join the conversation on the future of generative AI on LinkedIn #GenerativeAI #AI #Startups #Investment #Technology #Innovation #LinkedIn

The generative AI gold rush is in full swing. Billions are pouring into startups promising to revolutionize everything from content creation to drug discovery. But as the excitement grows, so do the challenges. The AI Funding Landscape ➕ Money is flowing: Investments in generative AI startups are booming, with a particular focus on early-stage ventures. ➕ Winner takes most: The industry is consolidating, with a small number of big players attracting the lion's share of funding. ➕ High stakes, high risks: Legal battles over copyright, soaring training costs, and profitability concerns are casting a shadow over the sector. Due Diligence is Key ➕ While the allure of AI can be irresistible, it's crucial to approach career opportunities with a critical eye. ➕ Evaluate the company's stage: Early-stage startups offer high growth potential but also carry greater risk. ➕ Understand the business model: How does the company plan to generate revenue and achieve profitability? ➕ Assess the team: A strong team with a proven track record can increase your chances of success. ➕ Consider the long-term outlook: The AI landscape is rapidly evolving. Can the company adapt to changing market conditions? The AI industry is undoubtedly exciting, but it's essential to approach it with caution. Do your research, weigh the pros and cons, and choose a career path that aligns with your long-term goals. What are your thoughts on the AI funding landscape? Share your insights in the comments below.

2023 turned out to be a turning point for AI.  IT companies underperformed but one thing remained common in their order book. Generative AI, Generative AI, and some more Generative AI. But a few days back I was reading an interesting blog post from GoingVC and they discussed whether hardcore AI still has more fumes left in it. According to AltIndex, AI companies raised a whopping $50B in funding in 2023, which marks the second-highest fundraising achievement in the history of the global AI Market. At a time when funding remained low, AI defied all the odds! The largest fundraisings were seen by: 1. Yours Truly, Open AI: $10B  2. AI Safety Research Company, Anthropic: Nearly $7B 3. Personal AI Chatbot development company, Inflection AI: $1.3B 4. Car Parking Modernisation Startup, Metropolis: $1.1B It's interesting to note that several of these companies are not hardcore AI but utilize AI to transform their product offerings. However, what grabs attention here is, apparently the deal numbers were fewer but the deal sizes were bigger. Where the total number of deals was 1101 in 2022, it got slashed by 23.5% in 2023 to 842 deals.  It could mean that VCs became much more diligent and risk-averse in 2023. So they parked a large chunk of their funds where they saw a good opportunity.  Another point could be that AI or generative AI is costly. Training the model, developing the infrastructure, R&D, and experimentation is costly, leading to higher cash burn and thus the need for higher funding. Now, if we were to talk about AI funding predictions this year, the article does a wonderful job showcasing the views of various venture capitalists themselves.  1. A common theme that they predict is that hard-core AIs might take a backseat but startups who utilize AI as a complementary product, are expected to steal the show. These could be anything ranging from customer service products that utilize generative AI, or employee engagement products that use AI to track and suggest employee engagement activities. Or it could be a combination of two of the hottest trends right now, EV and AI where AI could be used to track EV performance or EV infra performance. The opportunities are endless.  2. According to other experts, they are hoping to see innovation in AI data centers. High computer power, storage, energy, risk management, and data distribution can all become a direct beneficiary of the AI revolution. It also excites me since India comes among the top 20 countries with the highest number of data centers.  3. Another area that is seeing traction right now is humanoid robot space, which NVIDIA is entering soon. It seems 2024 will be another exciting year for us tech enthusiasts! For those interested, the original article can be found here: AI in 2024: A Year of Innovation and Investment - Unveiling the Funding Landscape.

What is Equitable AI? Equitable #AI refers to AI technologies that humans intentionally design, develop, and implement to result in equitable outcomes for everyone. We believe there is an opportunity for Equitable AI to lead to smarter investing and drive growth of #startups. Interested in learning more? We invite you to read our whitepaper, authored by MT>Ventures team members Aliya Ramji, Eashan Karnik, John Durland and our McCarthy Tétrault colleagues Charles Morgan and Charlene Theodore. The whitepaper was also supported by Krystel Ametepeh, Mitch Spragg, Archanah Thurairatnam, and Raye Willms, MBA. Visit our website to access the abstract and download the whitepaper: https://lnkd.in/dVHnTCyt #equitableai #investing #venturecapital 

Over the past year, I’ve engaged in conversations about the impact of #DEI on #artificialintelligence. I worked with Aliya Ramji, Charles Morgan, and our MT>Ventures, a Division of McCarthy Tétrault team to connect both topics in the whitepaper titled “Equitable AI: How Bias-Conscious AI Leads to Smarter Investing”. I was thrilled to have the opportunity to contribute, and I invite you to read more about these important considerations on how bias in investing can be addressed – albeit carefully – with the use of AI to enable better decision-making in investing in the startup community. #diversityintech #aiadvancements

The AI Revolution: Transforming Startup Funding Perspectives In recent years, the landscape of startup funding has undergone a profound transformation, largely fueled by advancements in artificial intelligence (AI). This technological revolution is reshaping traditional funding models and opening up new avenues for entrepreneurs around the globe. One of the most significant ways AI is changing the funding game for startups is through its ability to analyze vast amounts of data with unparalleled speed and accuracy. This capability allows investors to make more informed decisions by leveraging predictive analytics to identify promising investment opportunities. By analyzing market trends, consumer behavior, and competitive landscapes, AI-powered algorithms can uncover insights that were previously inaccessible, helping investors mitigate risks and maximize returns. Furthermore, AI is democratizing access to funding for startups, particularly in regions where traditional funding channels may be limited. Crowdfunding platforms, powered by AI algorithms, are enabling entrepreneurs to reach a global audience of potential investors, bypassing the need for traditional venture capital firms. These platforms utilize AI-driven algorithms to match startups with investors based on their preferences, interests, and risk profiles, leveling the playing field for entrepreneurs from diverse backgrounds. Moreover, AI is revolutionizing the due diligence process, streamlining and automating tedious tasks such as document analysis, legal research, and background checks. By leveraging natural language processing (NLP) and machine learning algorithms, AI systems can sift through mountains of data in a fraction of the time it would take a human, allowing investors to expedite the decision-making process without sacrificing accuracy. Another area where AI is making waves in startup funding is in the realm of alternative data sources. Traditional financial metrics only provide a partial view of a startup's potential, often overlooking critical factors such as social media sentiment, online reviews, or even satellite imagery analysis. AI algorithms can harness these alternative data sources to provide a more comprehensive assessment of a startup's viability, giving investors a competitive edge in identifying high-growth opportunities. As AI continues to play an increasingly prominent role in startup funding, questions around data privacy, algorithmic bias, and transparency become paramount. It's crucial for investors and entrepreneurs alike to navigate these complexities responsibly and ethically to ensure the equitable and sustainable growth of the startup ecosystem. #AIRevolution #StartupFunding #TechInnovation #DataDrivenInvesting #FutureofFinance #AIInVentureCapital #GlobalEntrepreneurship #TechForGood #InvestmentInsights #AIAnalytics #EmergingTechnologies #InnovationEconomy #CrowdfundingRevolution #DataDrivenDecisions #AIforGood #VentureCapitalInsights