On 20th July 2022, INDIAai organized an exclusive webinar on the Introduction to AI startup investment landscape on LinkedIn live. The insightful session was mediated by Jibu Elias, Content & Research Lead of India AI. Mitesh Shah, Co-Founder Inflection Point Ventures; Vinayak Shrivastav, Co-founder, VideoVerse; Sharmin Ali, Founder and CEO, Instoried; and Dr Somdutta Singh, Founder and CEO of Assiduus Global Inc were the panelists of the event. 

The webinar analyzed the landscape of raising capital for the next AI startup and how one can attract investors. During the event, Mitesh Shah, one of the country's leading investors, explained India's investor landscape today. "Looking at the past years, the overall ecosystem has evolved", says Mitesh Shah.  

Investor's landscape in India 

"The idea of 'only revenue earning businesses' has transformed. Disruptive ideas are welcome, and most importantly, the IIT and IIM tags are not necessary to earn funding", says Mitesh Shah. In the AI ecosystem, no sectors are too bad to be written off. But, at the same time, no sector is too good to fund everything that comes in your way. 

According to Mitesh, this is an excellent time to be a founder. However, it is essential to understand that seeking or receiving funding should not be the end goal. Unreal years like 2021 might come our way. The founder and the investor should be ready to tackle the struggle it brings. Expecting the world to be the same would be the biggest mistake while investing in a startup. In Mitesh's opinion, some founders could get the best out of available investments in the previous year.  

Also, investors should remember that startup investments should be made persistently. A spray and pray strategy were investing in multiple startups, hoping one of them would pan out well should not be the approach. Instead, the investor should be capable of supporting the founder to create a long-term story. 

Founder-investor relation 

Vinayak, the Co-founder of VideoVerse, pointed out during the discussion that every company has its cycle. Therefore, a strategy cannot be universal. It should be applied according to the nature, vision and approach of the particular startup. Also, we are now standing in an ecosystem where the availability of capital is abundant for those who need it, but it is wise for entrepreneurs to find the right investors for their firm. In his opinion, finding the right investor is not an issue confined to an Indian setting. It is a global phenomenon that needs to be addressed and thought through whilst seeking funding. 

Simultaneously, the investors should also look into the overall performance and attitude of the business before stepping in. Speaking about Vinayak's experience with IPV Ventures, he talked about the promise of support that Mitesh and the team ensured, and in return, he extended his honesty and hard work. A good partnership between the investor and the founder is the key to a successful business. 

To those with the next big idea 

To conclude, here is Mitesh Shah’s advice to those with the idea for a startup: 

1. Be Yourself: Don't say yes or no to please the investors. 
2. Using AI: The term Artificial Intelligence has recently been a victim of fancy usage. The startup owners should involve the word AI only due to absolute necessity. 
3. Take feedback wisely: While presenting the vision of the business, the founders will have to listen to multiple feedbacks. The startup owners should be careful about the suggestions they accept. 
4. Value creation over Valuation: Entrepreneurs should aim at creating value for their business and idea.