Indian venture capital firm Together Fund has announced the launch of a new $150 million fund aimed at supporting artificial intelligence (AI) startups in the software-as-a-service (SaaS) market. The fund, which is Together Fund’s second, will provide capital of up to $5 million each to seed and Series A companies.
Together Fund’s first fund, initially valued at $85 million in 2021, has already invested in 20 software-as-a-service companies operating in sectors such as recruitment, security, and healthcare. The announcement comes as generative AI, a technology utilized in chatbots like OpenAI Inc.’s ChatGPT, continues to gain traction in the business world, offering potential for task automation and improved customer service.
Manav Garg, founding partner of Together Fund and co-founder of Eka Software Solutions, highlighted the significant growth opportunities in AI adoption. Garg referenced a Goldman Sachs report stating that AI adoption could generate $7 trillion in global economic growth over the next decade. He believes that native AI startups will drive enterprise adoption of AI, and with India already boasting millions of software developers and over 3,500 SaaS startups generating $7 billion in revenue, the country is well-positioned to seize the AI opportunity.
Despite a slowdown in venture funding, the pace of new AI company creations remains robust. Together Fund, based in Bangalore, has already backed three AI companies in the past three months alone. Garg expressed optimism about the future, stating that the bright spot ahead in the business landscape is AI. He also revealed that all 20 companies currently backed by the fund have a significant component of or are incorporating generative AI.
Overall, the launch of Together Fund’s $150 million fund demonstrates the increasing interest in AI startups operating in the SaaS market. The fund aims to capitalize on the evolving AI landscape and support early-stage companies in their pursuit of success. With India’s emerging position as a key player in both software development and SaaS revenue, the country is primed to take advantage of the AI opportunity and drive forward innovation in the sector.
Frequently Asked Questions (FAQs) Related to the Above News
What is Together Fund's new fund aimed at?
Together Fund's new $150 million fund is aimed at supporting artificial intelligence (AI) startups in the software-as-a-service (SaaS) market.
How much capital will the fund provide to seed and Series A companies?
The fund will provide capital of up to $5 million each to seed and Series A companies.
How many software-as-a-service companies has Together Fund's first fund invested in?
Together Fund's first fund has already invested in 20 software-as-a-service companies.
In which sectors are the software-as-a-service companies that Together Fund has invested in operating?
The software-as-a-service companies that Together Fund has invested in are operating in sectors such as recruitment, security, and healthcare.
What is generative AI and how is it currently being utilized?
Generative AI is a technology used in chatbots like OpenAI Inc.'s ChatGPT. It offers potential for task automation and improved customer service.
What significant growth opportunities in AI adoption does Manav Garg, the founding partner of Together Fund, see?
Manav Garg refers to a Goldman Sachs report stating that AI adoption could generate $7 trillion in global economic growth over the next decade. He believes that native AI startups will drive enterprise adoption of AI.
How many software developers does India have, and how much revenue is generated by SaaS startups in the country?
India boasts millions of software developers and over 3,500 SaaS startups generating $7 billion in revenue.
Has the pace of new AI company creations slowed down?
Despite a slowdown in venture funding, the pace of new AI company creations remains robust.
How many AI companies has Together Fund backed in the past three months?
Together Fund has backed three AI companies in the past three months alone.
Are all the companies currently backed by Together Fund incorporating generative AI?
Yes, all 20 companies currently backed by Together Fund have a significant component of or are incorporating generative AI.
What does the launch of Together Fund's $150 million fund demonstrate?
The launch of Together Fund's $150 million fund demonstrates the increasing interest in AI startups operating in the SaaS market and aims to support early-stage companies in their pursuit of success.
Why is India well-positioned to seize the AI opportunity?
India is well-positioned to seize the AI opportunity due to its large pool of software developers and the presence of over 3,500 SaaS startups generating significant revenue.
What role does Together Fund see for India in driving forward innovation in the AI sector?
Together Fund sees India as a key player in both software development and SaaS revenue, which positions the country to drive forward innovation in the AI sector.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
