Every now and then, an industry pops up that is so transformative, it literally changes the way society functions forever. In much the same way there was a world before electricity and after it, high technology has radically altered life. For Generation X, and to a lesser extent millennials, the dawn of the internet represented a sea change in the way they saw the world and lived in it.
It’s literally impossible for anyone younger than 50 to imagine life without social media, 24-hour online banking, streaming platforms and a host of other innovations. While all these innovations are designed to be convenient, the reality is that there is an entire digital infrastructure beneath the surface. Increasingly, that digital infrastructure is relying on artificial intelligence (AI) to do jobs that humans can’t do, won’t do or would take too long to do.
It’s a trend that is not going anywhere. Facebook may have started as a social media app, but it relies on artificial intelligence and algorithms to deliver targeted advertising to its users. As police departments and militaries all over the world begin forays into robotics, these robots will be almost entirely reliant on AI. Perhaps the most famous robot in the world, Boston Dynamic’s AI dog Spot, was recently seen patrolling some American cities in cooperation with local police.
Believe it or not, Boston Dynamics was once a small startup in need of funding, and the people who bought in early are reaping tremendous rewards. Every day, hundreds of AI startups put their shingles out in the hope of receiving the funding they need to go to the next level. What that means for investors is that AI offers tremendous opportunity as an investment. Perhaps it’s time to learn how to get to the party early and (hopefully) make yourself a lot of money in the process.
Looking for AI Startups to invest in? We've compiled some of the best startup investment opportunities for you to consider.
Why Invest in AI Startups?
The answer to this question is very simple: AI is already part of daily life, and in the years to come, the role it plays will only increase. A partial list of fields that are touched by AI, or rely on AI for one reason or another, includes:
- Blockchains
- Cryptocurrency
- Robotics
- Biotechnology
- Computing
- Education
- Machine learning
That translates to a lot of opportunity and money. In fact, a recent study by the Organization for Economic Co-operation and Development found that venture capitalists spent more than $75 billion on AI startups in 2020. That’s up from $12 billion in 2012.
Many of the venture capitalists banking so heavily on AI startups are the same ones who made a mint off of their early investments in e-commerce and social media such as Amazon.com Inc. (NASDAQ: AMZN), eBay Inc. (NASDAQ: EBAY), Facebook Inc. (NASDAQ: FB) and Instagram. These heavy bets can only reveal one simple conclusion: People in the know are banking on AI as being here to stay.
Why wouldn’t they? The potential applications of AI are almost limitless. When you get beyond the science fiction run amok with fears of killer robots, you could be left with a host of innovations that could save your life. Imagine a nanobot or a group of AI-enhanced nanobots that are programmed to seek out and destroy brain cancer cells in a tumor that is inoperable by human hands.
The autopilot feature in new Teslas relies on AI technology. The same is true for the self-driving cars being pioneered by a number of different tech companies. The single common thread running through the latest innovations in a multitude of different fields is their increasing reliance on AI. That means anyone who gets in on the ground floor of an AI startup that fills an existing need, or advances an existing technology, stands to profit richly from that investment.
Where To Find AI Startups To Invest In
This is where it gets a little complicated for the everyday retail investor. If you’re like most people, you don’t have a direct line to Silicon Valley, China or any of the other typical launchpads for AI startups. That makes it a bit of a challenge for you to find AI startups before they are publicly traded — and unaffordable.
Thankfully, there are a number of online crowdfunding platforms that offer equity shares in AI startups in exchange for early investor seed money. The Wefunder platform has more than 40 AI startup offerings and has already fully funded over 50 other ventures. If the idea of picking and choosing which AI startup to invest in is intimidating because you lack specific knowledge, there are still a number of funds, such as the one offered by Alumni Ventures.
The good thing about AI startups is that they are so tech-oriented that their mission dovetails beautifully with any number of online crowdfunding and investing platforms. That’s why AI startups are one of the most popular alternative investments, and because of this there are a multitude of AI startup offerings on all the best online crowdfunding platforms.
Best AI Startup Investments
The world is moving toward a future powered by artificial intelligence (AI) tools. As AI begins to influence more industries, check out these 3 AI crowdfunding campaigns to invest in now.
Knightscope
Knightscope plans to redefine public safety by providing the safest possible surroundings for the United States with its line of American-made Autonomous Security Robots (ASRs).
The Company: Knightscope's Autonomous Security Robots would patrol the country 24 hours a day, 7 days a week, to keep the locations people live, study, work and visit safe.
This way, the company is rethinking public safety when most Americans believe the country most needs it. With over 28,000 investors and more than $100 million funded since launch, including $13+ million in lifetime revenue, Knightscope's ASRs have logged over 1,000,000 hours in the field.
The startup is currently taking the necessary steps to build on its track record of successful crime prevention and enhanced public safety..
Investment Highlights: Knightscope aims to deliver its Autonomous Security Robots (ASRs) to help in preventing crime and improve public safety.
The company's ASRs collaborate with people to give law enforcement officers and security guards unprecedented situational awareness. They are equipped with eye-level 360° cameras, thermal scanning, public address announcements and various other functions.
Each ASR is intended to supplement (not replace) existing security operations. Users will have a streamlined monitoring system at their fingertips when combined with the Knightscope Security Operations Center (KSOC), the company's browser-based user interface.
Investors can learn more about Knightscope and the current offering through the company’s page on StartEngine (1).
Offering Circular
Related Risks
This Reg A+ is made available through StartEngine Primary, LLC, Member of FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Cortex
Cortex wants to change the way advertisers go about content by developing an AI-powered tool that helps companies choose the most suitable content type that will help them succeed in their campaigns.
The company: Cortex is a software as a service (SaaS) platform aimed at advertisers worldwide. The platform offers AI-powered specific advice on what content will work and what won't before an enterprise starts creating any. Cortex is a first in that it can reliably predict how an audience will react to content by using AI, resulting in campaigns that perform 50% better.
Investment highlights: So far, no technology that focuses on improving images, which are the foundation of today's advertising, marketing and packaging, has been developed. Cortex aims to take the lead by providing a much-needed answer to a market worth $600 billion and increasing.
Cortex is already used by advertisers all around the world to better their creative material and develop more successful campaigns for their brands. The startup requires a minimum investment of $100.
Pickzen
Pickzen's goal is to make the client's journey a pleasurable experience through personalization. Using the company's no-code platform, users can develop any type of experience in days or even hours instead of weeks or months.
The company: From a simple decision tree to more complicated and intricate business rules, Pickzen wants to provide developers with the tools they need to create the recommendation engine they aim for. The startup uses artificial intelligence to provide quantitative value that grows over time.
Pickzen's tool allows AI-powered recommendations to display the most relevant items from your product feed. In addition, developers may also utilize the company's software development toolkit and application program interfaces to fully customize their experiences from start to finish. The end result is an online purchasing experience that is personalized and casual.
Investment highlights: Pickzen allows developers to create measurable value recommendation engines rapidly and simply. The platform makes customer journey personalization solutions faster to be produced, freeing up expensive resources and allowing developers to focus on the core business.
Pickzen's tool regularly offers a 2x greater conversion rate, reduces checkout time and return rate, and improves the overall customer experience with millions of engaged users. Prickzen has a $100 minimum investment requirement.
Choosing Which AI Startups To Invest In
Choosing when and where to invest your hard-earned money is never a simple process. This is especially true when it comes to investing in startups, which is inherently risky. After all, a startup is basically an idea.
Weighing that good idea versus the cost of bringing it to reality at a reasonable price point is one of the most difficult equations to balance. That’s not even taking into account the fierce nature of what has become a global competition for AI advancement. All of this serves to make choosing which AI startup to invest in a very difficult task for retail investors.
The good news is that the same fundamentals that guide wise investing in other fields apply to AI startups. Due diligence, patience and, perhaps most importantly, a focus on diversification are the keys to choosing AI startups to invest in.
It’s very likely that AI is making inroads into a field or business that you already have an affinity for. AI is literally everywhere — from crypto and banking to biotech and all points between. If you’ve got investments, professional experience or an interest in any particular field, think critically about where and how AI could be put to use in that field. This is a great place to begin looking for investments.
The key thing to keep in mind here is that AI startup investing is a lot like fishing. You’re probably going to have to cast your line and lure into the water a whole lot before you catch a big fish. That’s why it might be a better idea to invest in a venture capital fund that specializes in AI startups rather than trying to pick them yourself. If you invest in a fund, your capital will be spread across a number of different startups that have already been vetted by people with a history of successfully funding them.
The AI Revolution Train Is Coming, so Get on Board
The words artificial intelligence can invoke strong reactions in people. Some see it as having the potential to truly revolutionize humanity. Others see it as a genie that should be kept in a bottle before it gets out of control. Regardless of where you sit on that debate, the fact remains that AI is a part of life, and that’s not going to change anytime soon.
If anything, AI will continue to become a larger and larger part of all of life in the years to come. You can either lament that fact, or try to figure out how to take advantage of it because the AI the train is coming, and there’s no stopping it. The good news is that the potential applications of AI are limitless, which means the investment opportunities are, too. It’s the wave of the future, and that future is now. That’s why the sooner you begin making wise investments in AI startups, the sooner you can start riding the wave and building wealth.
(1)Benzinga may receive monetary compensation by the issuer, or its agency, for publicizing the offering of the issuer’s securities. Benzinga and the issuer of this offering make no promises, representations, warranties or guarantees that any of the services will result in a profit or will not result in a loss.