AI- a next big wave:
Artificial Intelligence is expected to contribute $15.7 trillion to the global economy in 2030, more than the current output of China and India combined. AI is a technological wave that shall affect almost every aspect of business and life for decades to come.
Challenges of Investing in AI:
Evaluating and investing in AI startups is not easy. Seductive story-telling, snazzy marketing, high-profile past employers and university degrees, while effective, sometimes hide the reality under the hood. It is extremely critical for early-stage investors to be able to distinguish between hype and reality from both technology and business angles.
SenseAI's VDAT framework to evaluate AI Startups:
A critical part of investing in AI startups is understanding the technology. But before going deeper, we first try to understand whether the problem the startup is solving requires AI.
Once the need for AI is clear, we do a deep dive into the startup’s technology. To help us structure this assessment, we apply SenseAI’s own VDAT framework, that uses 4 core factors required for success as an AI-centric startup:
Variety in data
Identifying the multi-bagger in AI:
Investors have to think 24-36 months ahead of the time while investing in Artificial Intelligence-based startups.