Key Highlights
- $50M fund will invest in mission-centric AI startups with allocation into the next 20 – 25 artificial intelligence (AI) and generative AI technology opportunities offered to investors on the OurCrowd platform
- AI, machine learning set to impact multiple industries and sectors, led by explosion in generative AI
- Goldman Sachs, Bloomberg, McKinsey and other top analysts forecast unprecedented growth in AI investment driven by VC with double-digit CAGR
- OurCrowd is Israel’s most active AI investor with 81 AI companies worldwide, 8 exits including Lemonade, Magisto, BriefCam; ranked among Top 15 most active VCs worldwide in AI deals since 2012 according to analysis of PitchBook data
- The OurCrowd AI Fund will have guaranteed and preferential allocation for all OurCrowd AI investment opportunities, including exclusive offerings that are not offered broadly on the OurCrowd platform; such as recent investments in blackshark.ai and hu.ma.ne
- OurCrowd’s strong VC co-investment partners giving access to top opportunities include Soma Capital, #1 most active seed investor in generative AI according to PitchBook data; Rebel Fund; F2 Venture Capital; Harpoon Ventures, TechAviv.
Overview
This $50M fund will provide OurCrowd investors allocation into the next 20-25 AI technology opportunities approved by OurCrowd’s investment committee. The OurCrowd AI Fund will invest in startups developing proprietary, mission-centric AI as their core IP and a major driver of revenue as well as startups developing AI infrastructure which will be critical for the growth of AI companies and applications. The fund will also focus on companies developing generative AI across multiple sectors, including verticals such as MedTech, mobility, AgTech, cybersecurity, FoodTech, ClimaTech, LegalTech and FinTech, among others. The fund will also invest in companies that provide AI solutions to support key business categories across technology sectors, including customer operations, marketing and sales, software engineering, and R&D, to name a few examples.
Since the release of OpenAI’s ChatGPT in November 2022 the interest in artificial intelligence (AI) and particularly in generative AI has surged. The remarkable success of ChatGPT is a testament to the power of product/market fit. Launched on November 30th, 2022, it gained over 1M users in just 5 days and reached 100M users in just 2 months. This level of mass adoption for a technology product is unprecedented, way outpacing previous tech innovative waves such as the PC (it took Apple 14 years and Microsoft 10 years to attain 100M users), Internet (Amazon – 12 years, Facebook 5 years and Google raised the bar to 1 year), Mobile (Instagram – 30 months and TikTok – 9 months).
Much of the excitement and wonder about the recent AI wave is related to the scope of the opportunity ahead. In the words of a recent Goldman Sachs report, “Artificial intelligence may be one of the biggest technological leaps in history. It is poised to unlock new business models, transform industries, reshape people’s jobs, and boost economic productivity.”
Why We Are Investing In
Artificial intelligence (AI) is the world’s fastest-growing venture investment sector. AI technology is transforming multiple industries. The impact on our lives looks set to be comparable to the invention of electricity or the introduction of personal computing. The runaway success of ChatGPT, the fastest-adopted technology platform in history, suggests the appeal is enormous and the market potential is unprecedented.
Market Need
There is a massive growth in AI and generative AI (GenAI) adoption. “Artificial intelligence may be one of the biggest technological leaps in history. It is poised to unlock new business models, transform industries, reshape people’s jobs, and boost economic productivity,” says Goldman Sachs. AI is transformative. The adoption of AI technologies is happening faster than any other technology in history accelerating in recent years with the development of big data and increases in computer processing power. It is poised to completely disrupt multiple industries. This is “AI’s iPhone moment”, to quote Michael Kagan, the CTO of NVIDIA. There is almost no major industry that AI has not affected.
Presentation
Summary Of Terms
Investment Objective: To realize long-term capital appreciation by making equity and equity-related investments in companies focused on artificial intelligence across different geographies and stages as determined in the sole discretion of the General Partner. The foregoing shall include investments in portfolio companies made indirectly through co-investment vehicles established by third party managers with which OurCrowd has a strategic relationship for the purpose of investing in such portfolio companies[1].
Target Portfolio Size: ~20 portfolio companies.
Investment Limitations. Unless otherwise approved by the advisory committee of the Fund, the Fund will not invest: (a) more than 5% of aggregate capital commitments in the initial financing round of a portfolio investment; and (b) more than 7.5% of aggregate capital commitments in one portfolio investment.
Minimum Capital Commitment: $50K[2]
