ARTPARK foundation establishes a $100 mn venture fund to support 10-15 AI, Robotics startups
- ByStartupStory | July 29, 2022
ARTPARK, a Bengaluru-based AI and robotics foundation, has announced a $100 million venture fund to invest in 10-15 early & growth-stage AI and robotics firms developing solutions for the education, mobility, and healthcare sectors over three years. The Securities and Exchange Board of India (SEBI) has approved the fund, and it will make its maiden closing by December of this year. It will make investments in both new and current portfolio firms.
The AI & Robotics Technology Park (ARTPARK), a non-profit foundation created in 2020 by the Indian Institute of Science, Bengaluru, and venture studio AI Foundry, aims to foster technological advances in the sectors. The Department of Science and Technology (DST), as well as the Karnataka government, have awarded ARTPARK a $32 million initial grant.
In addition to opening a venture capital fund, ARTPARK intends to promote almost 52 AI and robotics firms in India over the next 5 years. “We hope that a couple of our supported firms will not only become unicorns, but also decacorns, with the potential to become revolutionary engines of change that can shift the whole business ecosystem,” Soni added.
Soni stated, citing a PwC estimate, that the artificial intelligence (AI) & robotics business will generate around $15.7 trillion in economic value by 2030. Despite their bright future, AI and robotics firms confront several difficulties, according to him. Finding the proper people is one of the most difficult issues for entrepreneurs managing AI firms. It is extremely difficult to attract talent unless the cofounder or CTO knows AI and can connect with research and produce a technical output, according to Soni.
Soni also stated that persuading venture capitalists to invest in AI and robotic firms is a challenge. “VCs usually attempt to second-guess AI and robotic businesses and invite them to come when they start making money.” Entrepreneurs almost die by the time they start generating money… “Getting financing in the robotics business is challenging since entrepreneurs must create massive robots,” he explained.
According to one report, India’s AI sector would be valued at $3.1 billion in 2020. The sector is expected to expand to a $7.8 billion market by 2025, with a CAGR of 20.2 percent. Among the firms in the field are Sudip Nandy-backed Navikenz, Prosus Ventures-backed Detect Technologies, and MassMutual Ventures-backed Qure.ai.
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