Artificial intelligence or AI brings new capabilities and applications.

Many startups launch their business around AI technology.

Investors considering an investment in an AI startup should check the following:

Source of data.

Does the startup have access to data sets?

Unique data.

Does the startup have a data set that others do not have access to?

Clean data.

Is the data clean and ready for use or must it go through a costly cleaning process?

Quantity of data.

Does the startup have access to a substantial amount of data?

Cost of processing.

How much does it cost to process the data?

Machine learning. Also called  ML.

Do they have their own ML model or are they using an open-source one?

Core competency.

What is their core competency — core data, machine learning, user interface, and others?

ML skills.

Does the team have a core skill set around developing ML?

Data collection regulatory

Does the team gather and use the data sets within compliance?

Consider these factors when you are conducting your diligence on an AI startup.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.