Upgrading market trends in the world trigger the venture capital (VC) to make investments in AI. The VC community realized that AI can transform a company from tiny start-ups to huge public market exits of acquisitions. Start-ups started adding the terms AI, ML jargon, buzzwords into business plans which raised more money than ever.
Stages of Investment in AI
The latest demand in AI research, development, and investment is the third major stage of demand. The previous two stages were known as AI winters and the latest is called AI summer. The market sees signs of an impending chill in the latest stage of AI-based on the attention, interest, and resources.
During the 1950s, when the first stage of AI occurred, the government supplied the initial funding in a large amount. The further government lost interest and funding dried up. During the 1980s, when the second stage of AI came into the market, there was a rise in venture capitalism. An increase in research, projects, and more diverse projects were seen when new avenues opened up for funding.
The current stage of AI is moving forward due to various factors such as big data and computing power, cloud-based technology, the emergence of data-hungry deep learning neural network algorithms. Moreover, start-ups are raising funds to work in the AI space.
In the past, Silicon Valley made the most investment in the AI market. China-based firms made a major investment in AI and start-ups are starting from places like Bucharest to Bangalore gaining profit out of the AI investment. Companies in the US and in oversees are also posing challenges to Silicon Valley to become the top investor in AI.
The perspective of a venture capitalist
VC is still committed to the AI investment because they feel that AI is going to stay for a long time. VCs are investing more in companies applying machine learning and AI leading to the transformation of existing markets from retail to real estate.
ff Venture Capital (ffVC) founded by John Frankel along with partner Alex Katz in 2008. The interest of the company is for those companies which use artificial intelligence, robotics, drones, and cybersecurity. They have combines with New York University to assist start-up companies to accelerate their effort in AI.
Financial strength, research and academic strength, and the location of major companies that can apply technology is the reason for New York To have such strength in AI companies. AI provides a larger scope in finance, advertising, insurance, and other markets across the world.
AI should be seen as a way to improve or build upon what we had and not as a replacement strategy for the things that are not working.
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