AI firms dominate Peak XV’s latest programme to boost startups
VENTURE capital firm Peak XV Partners said the latest batch of its accelerator programme are made up mainly of artificial intelligence (AI) and deep tech startups, as global investors jostle to be early in such companies.
Peak XV, formerly known as Sequoia Capital India & South-east Asia, said there are 13 startups in the newest Surge cohort, of which 10 are in the AI and deep tech field. Seven of the startups are from India, four from South-east Asia, and two from Australia, the fund said on Monday (Oct 23).
The startups are in diverse areas from advanced manufacturing, quantum computers, climate tech and health tech, and receive as much as US$3 million in capital.
“If 1999 was the start of the consumer Internet era, then 2023 will be the beginning of the AI era,” Shailendra Singh, managing director of Peak XV, said. “The last six months have been pivotal as AI systems are showing efficacy and can be used to build crucial applications.”
Peak XV is looking actively at making AI investments, said Singh, adding “we are in the very early days of a multi decade AI trend.”
After the parting of the India and China units with the Silicon Valley parent, both Asian entities have global ambitions. Peak XV, which has managed over US$9 billion in capital across 13 funds since its inception as Sequoia’s regional unit, has broadened its search in the Asia-Pacific region to invest in Australian startups after the separation.
It’s now looking for office space in the Silicon Valley, where Sequoia is headquartered. Peak XV has made its first hire in the US, said Singh, who oversaw its split from the Silicon Valley giant this summer. The newest accelerator group will spend time in the US building networks and understanding the market, he said.
Surge’s latest group includes Indian chip startups Mindgrove Technologies and InCore Semiconductors, which are seeking to benefit from the country’s ambitions of becoming a semiconductor hub. Another startup, Singapore’s Pix.ai, helps creators produce high-quality anime art through an AI-powered anime generator. BLOOMBERG
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