How to invest in AI startups?
I already had experience investing in traditional businesses, but artificial intelligence is something new and I want to try investing in this niche.
I started studying the market, looking at which AI startups really attract the attention of venture funds, which of them receive grants and investments from large tech companies. It turned out that it is important not only what problem a startup solves, but also how easily its technology scales, whether it has real customers and how it is going to monetize its product.
Discussion
Investing in startups is inherently risky, as nine out of ten startups fail. Whether you are investing in an AI startup or any other startup, you should only invest money that you can afford to lose, as there is never a guarantee of success.
To reduce risk, you should conduct financial, legal, HR, technical, and commercial due diligence before investing.
Before investing in an AI startup, I did a thorough background check of the startup https://www.sembly.ai/participate/ analyzed their business model, checked how competitive their technology was, whether they had a sustainable revenue stream, and real customers. One of the key factors was that their product was already being used by large companies to automate meeting analysis and negotiations. This meant that they were not just testing an idea, but already had a working product with proven value.
Depends on why you are investing. I assume to make a profit and become a big benefactor to society :)
To make a profit, you will need to find companies that have AI technology and sell it. To get the most out of it, if you have a lot of money, I would hire a specialist to filter for me all the best new small AI startups that have a lot of potential but need money. You or your specialist should know what a killer new idea is. For example, voice recognition that actually works offline!