Creating the best chatbot is no longer a race nowadays; it’s got to do with who is throwing the biggest dollars in the future. With that in mind, here comes Perplexity, the latest in technology, and now with its own venture capital fund, an AI-powered search engine that caused rather a stir in the industry. Perplexity walks into the investor’s hall with fresh $50 million reserved for early startup investment, ready to discover what’s next big in AI and tech. It seems like Perplexity’s AI is smart enough to invest in people for now. However, with big bucks come big questions about who is getting funded and is Perplexity setting itself up as the Google of startup investments?
Perplexity, developer of an AI-powered search engine, has ventured into the venture capital arena by launching a $50 million seed and pre-seed fund, as reported by CNBC. Following their recent funding of $500 million at a $9 billion valuation, the company is using some of its own money in the fund’s cornerstone, while well proclaimed money comes from limited partners.
Perplexity dives into Venture Capital:
Kelly Graziadei and Joanna Lee Shevelenko are the GPs for the new fund. They previously co-founded f7 Ventures, an early-stage investment firm backing companies like women’s health startup Midi. It is still unclear if Graziadei and Shevelenko will continue in an advisory capacity with f7 Ventures or concentrate on Perplexity’s venture fund.
Through its venture capital foray, Perplexity seeks to nurture forward-thinking early-stage companies in AI and technology. This puts the company in the same league as other AI giants that have set up funds aimed at nurturing the next generation of tech immigrant businesses.
Perplexity VS OpenAI Investment Approach:
With the formation of its very own venture fund, Perplexity creates the juxtaposition with OpenAI, which itself has an investment scheme, namely the OpenAI Startup Fund. The contours of distinction arise in that OpenAI explained that it does not use its own funds to invest. Perplexity, however, has decided to use at least some part of its funds to capitalize its new venture.
Implications for the Ecosystem of Startups:
With this fund development, Perplexity is not just establishing itself in the AI and tech ecosystem but also providing necessary capital for startups that resonate with its vision. This action gives a nod to the heightened trend where AI firms are increasingly flexing their financial muscles to start their own investment vehicles to ensure innovation and strike strategic partnerships in the industry. It would be interesting to see what startups come into play as the fund emerges and how Perplexity’s investment strategy will put a mark in contributing to the shaping of AI and technology businesses. Now that the fund is beginning to deploy capital, all eyes will be on Perplexity to see if it can search for, and invest in the next billion-dollar idea.
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