Why are Artificial Intelligence based start-ups turning the heads of investors?

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Since the outbreak of Covid-19 pandemic, most of the sectors around the world have faced numerous challenges to keep the business alive and kicking. Several economic activities have been disrupted and majority of the enterprises have been hit hard during these testing times.

Especially, the budding start-ups have been unsettled the most, with the circumstances driving the investors away from the scene.

At this juncture, investors are sceptical about spending their money, especially when the opportunities are far and few. However, the scenario with AI-based start-ups is different altogether. These start-ups have found quite a few takers even amidst the global crisis, on the back of innovative and technologically advanced models.

The global business has witnessed a transformation of sorts with the advent of artificial intelligence and machine learning, and the investors are seizing this opportunity to stay afloat. 

According to some researches, AI start-ups have succeeded in raising $61.6 bn funds in the second quarter of 2020. The trend is likely to continue even during the most volatile market conditions with investors showing interest in deep tech.

Some of the investment firms have completely shifted their focus towards enhancing the capabilities of AI-based start-ups, while companies like Rajat Khare-led Boundary Holding have already been tapping the potential of budding businesses from a long time through timely funding.         

Investment companies mostly rely on past records before making an investment, without bearing in mind the capabilities of technologically advanced start-ups.

The success of Artificial intelligence firms though has convinced many investors to consider the newly-incorporated names for investment, even with little or no prior experience of the industry. With increased trust, these budding start-ups are turning many heads to rule the roost, giving new hope to the investors to sail through the tide. 

Overall, the potential of the AI firms can no longer be disputed after witnessing decent growth in the recent years. The time is ripe for the investment firms to boost the capabilities of such companies to innovate without compromising on the usage of funds and resources.

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