The Indian venture capital company Together Fund announced the creation of an early-stage fund to provide financial assistance to firms that operate in the area of artificial intelligence.
The purpose of this fund is to benefit from the process of using a new generation of technology in the software-as-a-service market. The total amount of funding intended for material support of companies specializing in AI developments is $150 million.
The Fund is the second such initiative of an Indian venture capital company. As part of the new project, the firm will support seed and Series A companies with a capital of up to $5 million each.
The first Together fund, created in 2021, had a volume of $85 million. Within the framework of this project, the firm provided support to 20 companies that develop software as a service and were selected among more than 1,700 startups in such areas as security, healthcare, and recruitment.
Manav Garg, founding partner of Together and co-founder of Eka Software Solutions, says that the emergence of generative artificial intelligence in the field of practical application as a tool for activities in various industries has caused a wave of AI use, which, according to him, significantly exceeds the scale of the trend of the spread of cloud services. He also, referring to the forecast of Goldman Sachs, noted that the introduction of a new generation of technology can become the foundation for global economic growth of $7 trillion over the next ten years.
Manav Garg stressed that startups operating in the field of artificial intelligence will contribute to the active use of AI in enterprises.
Generative machine intelligence, which is applied in chatbots, such as, for example, ChatGPT from OpenAI, has a high level of scaling intensity in the business sphere. The new generation technology has a significant potential for automating tasks and improving the quality of the customer service process.
Manav Garg says that there are currently more than 3,500 SaaS startups and several million software developers in India. According to him, their activities have a financial result in the form of income of $7 billion. He also noted that this base of companies and specialists is evidence that India is ready to use all currently available artificial intelligence capabilities.
Manav Garg stated that the slowdown in the pace of venture financing did not significantly affect the emergence of new firms specializing in developments in the field of artificial intelligence. The creation of companies of the appropriate profile has not become something practically inaccessible and has not come close to the edge of the unpossible.
Manav Garg said that over the past three months Together, based in Bangalore, has supported three firms that operate in the field of artificial intelligence. He says that AI is a bright spot in the business landscape. Also, according to him, all 20 companies that the fund, established in 2021, helped, have a large component of generative artificial intelligence or are implementing it.
As we have reported earlier, Softbank Invests in AI Company Tractable.