Is there a pulse check you do before investing in companies?

AI is a means to the end. While pi Ventures is an AI-focused fund, we’re primarily seeking to fund entrepreneurs who want to solve a large and pertinent problem using deep technologies like AI. What we also look for is the ’10x difference’ – the ability of an entrepreneur to create a 10x difference while solving a problem, using AI. For instance, one of our earliest investments was in Niramai, the AI-based breast cancer screening solution. Breast cancer was not new, and neither was thermal imaging. However, the founders were able to find a 10x solution to the early stage screening problem, which is largely still unsolved by another technology. On top of that, it is radiation free as well as painless.

In addition, we also look at other aspects such as the founding team, technical expertise and knowledge of AI to solve the problem at hand.

How has the perception of deeptech evolved India today?

Let me first explain with an anecdote: When I started out as an investor in this area in 2016, AI was commonly understood as the national carrier Air India – the two letter A & I were synonymous with the airline. Today, AI is ubiquitous for Artificial Intelligence. This change has taken nearly five years to happen. Compared to other technologies, the adoption, acceptance and demand for AI and related technologies has been rapid. This has also led to a fair bit of generalisation of the term, but I view it positively since it has led to widespread awareness and interest in the potential of AI. Beyond this, it provides investors and industry observers a chance to find clusters of companies solving necessary problems, cut through the hype and then discover particular entities that have the right combination of domain knowledge, problem solving skills and application of AI to solve these problems. As an investor, its these kinds of companies that I’m keen on supporting. These companies can go on to become category leaders.

What do you mean by that?

Just see our portfolio – some of our investments include Niramai, SigTuple, Wysa, SwitchOn, Locus, ten3T Health and Pyxis.. if you look at each of these companies, they set a precedent for being either the first or among the first to do what they do. Niramai is one of the most prolific names in AI-based breast cancer screening, Locus was one of the first to deploy AI for smart logistics, Wysa made a bold play with AI-based mental health management… Each of these companies have gone on to create a strong demand for the services and solutions they provide, and this is key in establishing a company as a category leader in their own categories.

What’s the mantra that enables your team to place bets on the right companies?

I’d say it’s a combination of many things. Primarily, my team and I explore the use case within a particular sector and gauge the ability of the team to make that ‘10x difference’. In addition, there is a thorough analysis of how the technology architecture is, this is something I personally value and believe is a differentiator. For instance, Wysa was not only breaking barriers using technology for mental health assessment, but also has a superior product – their AI engine is among the most sophisticated in its segment right now.

What do you believe are the most lucrative areas in AI for investment today and why? 

Again, I’d stress on the use case validity. There is no doubt that AI’s use goes far and wide – it can be developed to solve some of the biggest challenges in agriculture, healthcare, education, governance, enterprises and more. Specifically, I am bullish about the use and deployment of AI for remote health, supply chain management, gaming and infrastructure management. I also see it being used more deftly with technologies like AR/VR and MR. COVID19 has played an incremental role in accelerating the pace of adoption of technologies like AI. Those industries that were already using AI or sampling scenarios where AI could be used, will surge ahead even further. AI as a technology too is rapidly maturing, and we can expect some interesting applications like emotion analysis and lo-shot learning to gain a stronger foothold in the days to come.

Is there a particular sector you’re confident of picking up pace?

Yes, I think innovation in materials science is ripe for disruption in India after the digital innovation which is led by AI. While data is the fabric for innovation, materials science is the key to innovation beyond digital. We have invested in a company called Agnikul, which makes 3D printed rockets for small satellites. ISRO recently signed an NDA with them, permitting the company to access its technical expertise and facilities to develop their launch vehicles. This kind of cutting edge work is happening in India, with the caliber to work with national level organisations.

About pi Ventures:

pi Ventures is India’s first Applied Artificial Intelligence, Machine Learning , IoT focused early stage venture fund. pi Ventures focuses on healthcare, logistics, retail, fin-tech and enterprise sectors. Backed by some of the leading entrepreneurs globally, pi Ventures brings hands-on product and entrepreneurial experience to the India venture investing ecosystem. Some of their key investments include SigTuple, Agnikul, Zenatix, Niramai, Locus, SwitchOn, Wysa and Pyxis.