How to Diligence an AI Startup

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Artificial intelligence companies bring new challenges to the diligence process.

Here are the key steps to diligence an AI startup:

Does the AI startup have a clearly defined market that needs the product?

How competitive is the startup over other providers?

How well does the product fit the customer's needs?

Does the company have a clear growth strategy?

What type of data does it need, and can it find enough to meet the growth goals?

How does the customer of the product use the output?

How does one ensure the quality of the output?

Can the business be built on a data-driven approach?

Does the AI learn from its own processing, thus improving the model with more data?

Can the product build new use cases and thus open up new market opportunities?

What metrics does it use to check performance?

Does the system require a human to be involved?

What is the cost of this step?

Does the team have the necessary AI skills to build and run an AI-based product?

Does the team require outside expertise? Can they find it?

Consider these questions in diligencing 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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