Andrew Ng's AI Fund has made its first investment in India, backing AI healthcare firm Jivi.  The booming Indian AI market is expected to grow to $22 billion by 2027, with startups accounting for 1...

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- Andrew Ng's AI Fund has made its first investment in India, backing AI healthcare firm Jivi.
- The booming Indian AI market is expected to grow to $22 billion by 2027, with startups accounting for 15-17% of the market.
- Jivi uses AI for diagnoses, treatments, health reports, and administrative tasks.
- The investment amount and stake bought by AI Fund were not disclosed.
- AI Fund, backed by Sequoia Capital and Softbank Group, has also invested in Podcastle and Octagon AI.

Source: [Reuters](https://www.reuters.com/technology/artificial-intelligence/andrew-ngs-fund-makes-first-india-investment-with-ai-healthcare-firm-jivi-2024-10-08/)

Andrew Ng's AI Fund Invests in Indian Healthcare Firm Jivi

Journalist

Andrew Ng's AI Fund Invests in Indian Healthcare Firm Jivi- Grapevine

Welcome to Indian Startups's Private Community

willl try my best to be honest, ask me anything

AMA - I work at a VC fund

Analyst

In a landmark deal, Silicon Valley powerhouse General Catalyst has acquired Venture Highway, a seed-stage investment firm with a track record of backing winners like Meesho and Mobile Premier League.

The Deal:
- Rare instance of consolidation in the Indian VC market
- VH to be rebranded as General Catalyst India
- GC plans to invest $500 million to $1 billion in India over the next three years
- Acquisition driven by desire to build strong local team and tap into local LP network

But the move also raises important questions. Will this trigger a wave of consolidation in the Indian VC market? Will other global firms follow suit and snap up local players to gain a foothold in the country? And how will this influx of foreign capital shape the trajectory of India's startup ecosystem?

As the dust settles on this landmark deal, one thing is clear: India's startup scene is entering a new era, one where local innovation and global capital are increasingly intertwined.  Always long on India 🇮🇳

Image Credits: The Arc

General Catalyst's Venture Highway Acquisition: A Strategic Play for India 🇮🇳

- Sarvam AI - $41M (Lightspeed and Peak XV) 
- Mad Street Den - $67M (Avatar, Peak XV) 
- Wysa - $25M 
- Neysa Networks - $20M (Matrix Partners) 
- Scribble Data - $2.3M (Blume Ventures) 
- Expertia AI - $1.3M (Chiratae Ventures) 
- OnFinance - $ 1.1M (Silverneedle Ventures) 
- Krutrom AI - $50M (Matrix Partners)

India’s biggest Ai startups that raised more than $1M

Operations Manager

Been spending way too much time on Grapevine lately - absolutely loving it @Micheal_Scott!

Posted the Prosus report takeaways yday - lots of you DMed asking questions. Then I saw NewsAnchor break down the entire Prosus Annual Report - great stuff.

I was an Associate at one of the largest VC funds in India, so I enjoy going through new reports and summarising them - found my notes from Bain's India Venture Capital Report 2024. Thought of sharing the unedited summary that I shared with the Partners at the fund, have a bunch of these - can share more if of value to any of you here (ofc removing the confidential parts)

Notes:
1/ India's maintaining its gravitational pull despite the global funding crunch. Sure, overall funding nosedived 63% to $9.6B, but we're still the #2 destination in Asia-Pacific. Might not necessarily be a crash, it's a necessary course correction.
2/ Early-stage investing is showing remarkable resilience. Seed deals now comprise 70% of all deals, up from 60%, with average check sizes holding steady at $1.4M. Smart money is quietly positioning itself for the next wave of innovation.
3/ The tech-only playbook is being rewritten. While consumer tech, fintech, and SaaS still command 60% of funding, traditional sectors like BFSI are gaining ground, with average deal sizes jumping from $8M to $15M. We're witnessing the birth of tech-enabled, not just tech-centric, growth stories.
4/ The unicorn factory has hit pause, with only 2 new billion-dollar valuations vs. 23 in 2022. Mega-rounds ($100M+) plummeted from 48 to 15. This isn't a drought; it's a return to fundamentals. The era of grow-now-profit-later is firmly behind us.
5/ Generative AI isn't just hype; it's reshaping the landscape. Funding exploded from $15M to $250M, with 80% flowing to existing companies integrating AI. India's quickly becoming a laboratory for practical AI applications, not just speculative moonshots.
6/ Electric mobility is rewiring itself. While overall funding dipped slightly to $600M+, charging infrastructure investment surged 50%. The real opportunity isn't just in vehicles; it's in building out the entire EV ecosystem.
7/ Exits are defying gravity, leaping 1.7x to $6.6B. Public market sales led the charge at 55%, even as IPOs cooled. LPs are getting liquidity, and the secondary market is proving surprisingly robust. There's still appetite for quality assets.
8/ PE is no longer just watching from the sidelines. These players doubled their share to 25% of investments, going toe-to-toe with traditional VCs. The lines between growth equity and venture capital are blurring, and it's changing the game for late-stage rounds.
9/ We're watching natural selection in real-time. Yes, 35,000+ startups shuttered and 20,000+ layoffs hit the headlines. But companies like Groww and Indifi turned profitable. This isn't a bubble bursting; it's an ecosystem strengthening its foundations.
10/ Domestic VCs are coming of age. While overall fund-raising halved to $4B, homegrown VCs led 90%+ of raises. They're not just following; they're specializing, with thematic funds like Omnivore's $150M agritech vehicle. The ecosystem is bootstrapping its own future.
11/ Regulation isn't just tightening; it's evolving. Angel Tax expanded and lending norms got stricter, but we're also seeing innovative policies like UPI for foreign travelers. India's crafting a uniquely balanced approach to fostering innovation while maintaining stability.

Topics we can discuss during our standup:
1/ Can India produce global tech giants if it's primarily adopting rather than pioneering in areas like AI? How do we enable this?
2/ How will the shift towards profitability impact India's ability to foster truly disruptive innovations? Implications for us, how should we be evaluating deals differently?
3/ With domestic VCs leading the charge, how will this change India's startup narrative on the global stage?
4/ Is this maturation setting the stage for more resilient, globally competitive Indian startups, or are we risking our innovation edge? How do we look at thesis driven investing v/s fomo investing?

Link to Bain's report - https://www.bain.com/insights/india-venture-capital-report-2024/

P.S. Do note that this is 6+ months old - data points mostly look diff now but sharing it anyways. Will post more as and when I get time :)

My notes on Bain's 2024 VC report as a VC Associate

Investor

- Premji Invest, led by billionaire Azim Premji, may invest $10-$15 million in San Francisco-based AI startup Galileo.
- This investment is part of Galileo's Series B funding round, following an $18 million Series A round in November 2022.
- Galileo specializes in MLOps, helping data scientists and engineers improve machine learning model accuracy.
- This marks Premji Invest's fifth AI investment in the past year, including stakes in Hippocratic AI, Hugging Face, Canva, and Poolside.
- Premji Invest aims to build a global portfolio in the wake of the generative AI boom. 

 Source: [Moneycontrol](https://www.moneycontrol.com/technology/premji-invest-may-pump-in-10-15-million-in-san-francisco-based-ai-startup-galileo-article-12814083.html)

Premji Invest Eyes $10-$15 Million Stake in AI Startup Galileo

- OpenAI has secured $6.6bn in new funding and is now valued at $150bn, the highest in Silicon Valley's history.
- The company has asked investors to avoid backing rival start-ups such as Anthropic and Elon Musk’s xAI.
- OpenAI's move to seek exclusive relationships with investors could limit rivals' access to capital and strategic partnerships.
- The company's latest funding round was led by Thrive, a venture capital firm founded by Joshua Kushner.
- OpenAI plans to use the new funding to double down on its leadership in frontier AI research, increase compute capacity, and continue building tools that help people solve hard problems.

Source: [Financial Times](https://www.ft.com/content/66e0653e-c446-47b2-8a7f-baa54ccbfb9a)

OpenAI Secures $6.6bn Funding, Asks Investors to Avoid Rivals

Which are promising Gen AI startups from India?

Project Manager

Inc42 just released their Indian Tech Startup Funding Report H1 2024 - find it at tinyurl.com/24lr2s6c

As we dissect the data, several key trends emerge that paint a picture of an ecosystem in transition:

1. Resilience Amid Global Headwinds: Indian startups raised $5.3B in H1 2024, down just 2% YoY despite the global funding winter. This demonstrates the ecosystem's resilience and continued investor confidence in India's long-term potential. The country maintains its position as the second-largest funding destination in Asia-Pacific, signaling its growing importance in the global startup landscape.
2. Early-Stage Momentum Accelerates: Seed stage deals grew 23% YoY, now comprising 70% of all deals. With median ticket sizes holding steady at $1M, it's clear that investors are strategically positioning themselves for the next wave of innovation. This surge in early-stage activity could be the breeding ground for India's next generation of transformative startups.
3. Sector Diversification Beyond Pure Tech: While tech sectors like fintech and enterprise tech remain dominant, we're witnessing a notable pivot towards traditional sectors. BFSI deals, for instance, saw average sizes jump from $8M to $15M. This isn't indicative of a tech bubble bursting, but rather an ecosystem diversifying and recognizing the potential for tech-enabled disruption in traditional industries.
4. The AI Revolution Gains Momentum: Generative AI funding exploded from $15M to $250M YoY. Interestingly, 80% of this capital went to existing companies integrating AI rather than AI-native startups. This suggests India is rapidly becoming a laboratory for practical AI applications, focusing on real-world implementation rather than speculative moonshots.
5. Unicorn Creation Recalibrates: Only 3 new unicorns emerged in H1 2024, compared to 17 in H1 2022. This isn't necessarily a drought, but a return to fundamentals. The era of growth-at-all-costs appears to be giving way to a focus on sustainable business models and clear paths to profitability.
6. Exit Momentum Defies Funding Slowdown: Despite the overall funding deceleration, exits surged to $6.6B, up 70% YoY. This indicates a maturing ecosystem where quality assets are finding liquidity, a crucial factor for maintaining LP confidence and ensuring the long-term health of the venture ecosystem.
7. Rise of Domestic Capital: Over 90% of new funds raised were by domestic VCs, many launching sector-specific vehicles. This growing local capital base could reshape India's startup narrative on the global stage, potentially leading to more India-centric innovation and investment strategies.

The challenge - and opportunity - lies in identifying these emerging trends early and supporting promising ventures in building truly global businesses from India. As the ecosystem matures, those who can navigate this changing landscape stand to reap significant rewards.

What are your thoughts on these trends? Are you seeing similar patterns in other emerging markets? Let's discuss in the comments below.

India's Startup Ecosystem: Resilience and Recalibration in H1 2024

Hello everyone,

I’m eager to connect with individuals involved in health tech startups in India! Are there any professionals here who are part of or leading health tech ventures in this space? I’m curious about the experience in this dynamic field.

Could you share your insights on the different aspects of working in health tech startups? I’m particularly interested in understanding the challenges, growth opportunities, and the impact it offers.

Additionally, I’d love to know more about the notable companies making strides in the health tech sector in India. Who are the key players transforming the landscape and driving innovation in this domain?

Thank you for reading this message.

Health tech startups

Welcome to Software Engineers's Private Community

interested may kindly apply to https://www.sarvam.ai/

The first genuine AI company from India which seems promising because (a) Founders are extraordinary (b) backed by Khosla Ventures

Software Engineer

https://themorningcontext.com/internet/what-does-softbank-know-about-india-that-others-dont

Softbank is looking to offload India investments at any cost.

Can someone please upload a pdf?

Dude wants to desperately invest in AI Indian startups...

A nice read for ai enthusiasts

Kunal having AI fomo

Senior Consultant

- Accel gearing up for eighth India fund, aiming for $600-700M by end of 2024
- First major VC fundraise after 2022's funding winter, signaling potential market thaw
- Firm's stable team and strong track record expected to attract significant LP interest
- Accel known for early bets on Flipkart and Freshworks, seeks to maintain early-stage edge
- Company culture praised for alignment and handling of failures, but some sector gaps noted 

 Source: [The Arc](https://thearcweb.com/article/accel-india-fund-flipkart-freshworks-venture-capital-1lhpqpT5OmDbBxTs)

Accel Targets $700M India Fund, Largest Yet Amid VC Landscape Shifts

Stupid move by Indian government in GenAi sector

I've been curious about whether there are any good Indian startups in the AI field that are not building "tools" like meeting summary or anything of that sort. But more like research based such as OpenAI, Anthropic, Midjourney, etc.
They could be early stage or late stage, doesn't matter. Have you guys seen any around you with potential?

Any good Indian AI startups?

Founder

I'm thrilled to share our latest developments in our startup:
 We launched our prototype and it's gaining momentum! Our previous product, currently in stealth mode, has remarkable insights. 
However, the GPU usage costs have skyrocketed.

 Our new goal? To build an AI platform that serves as a cost-effective hub for training AI models. No one's tackling this issue, so we are the first ones to solve this issue. We already have some ties with the microchip manufacturer.

 Here's the thing: While we've been self-funded until now, we're now exploring seed funding. But there's a catch – we're cautious about accelerators and VCs. I have seen them undervalue my mate's company and prioritize quick revenue over steady growth.

So how should we go about it ?

I'll drop an example post for much clearer problem statement.

Exploring Seed Funding Options for Our AI Innovation

Tiger Global invests in an Indian startup after long (I think first investment this year)

Corporate Strategist

Software Engineer -  Cognition ($21M+)
Software Engineer -  Magic ($145M+)
Product Manager - Version Lens ($1.6M)
Data Scientist - TextQL ($4.1M)
Data Analyst - Fluent ($7.5M)
Chief of Staff - Mindy ($6M)
Universal Employee - Ema ($25M)
Financial Analyst - Finpilot ($4.5M)
Financial Analyst - Rogo ($7.5M)
Compliance - Norm Ai ($11.1M)
Receptionist - Arini ($0.5M)
Loan Officer - Casca ($3.9M)
Hotel Concierge - Runnr ($1.2M)
Designer - SevnAI ($0.5M)
Customer Support - Sierra ($110M)
Customer Support - Rasa ($70M)

Andrew Ng's AI Fund Invests in Indian Healthcare Firm Jivi

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