Should You Follow The Sequoia Capital AI Investing Model?

With artificial intelligence (AI) picking up steam with each passing day, it's natural to turn your attention to investments in this space. 

Sequoia Capital, a venture capital firm with approximately $85 billion in assets under management, is making a big bet on AI. To date, the firm has invested in more than 70 companies in the AI space, and there's no reason to believe that number won't increase.

While you may never invest in as many AI companies as Sequoia, crowdfunding has made it simple to get in on the ground floor of up-and-coming performers. Jurny, an AI-powered property management solution, is a great example. To date, the startup has raised more than $2.7 million on Wefunder.

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How Sequoia Capital Is Investing In AI

In a recent interview with Crunchbase, Sequoia Partner Stephanie Zhan said, "AI has brought new life to the investing ecosystem in the last year."

Think about this: It's only been a year since ChatGPT took the world by storm. 

The AI craze is in its infancy, and with this, anyone interested in investing in the technology still has a big opportunity to get in early.

"We've seen more creation and formation of new AI companies," Zhan said. "We've seen the rise in early-stage AI investing — most notably, preseed and seed-stage AI companies that we're actively investing in right now."

Sequoia has investments in approximately 70 AI-focused companies, with 17 yet to be unveiled. Its portfolio spans various industries and development stages, from early seed startups to established public entities. 

Trending: Get equity and front row seats to the startups and small businesses you love —⁠ for as little as $100.

Sequoia invested in Nvidia Corp. in the 1990s and has since expanded to sectors like biotechnology, robotics and autonomous vehicles. If you're not familiar with Nvidia, its stock price has increased by roughly 217% over the past 12 months. 

In 2023, Sequoia announced investments in AI ventures such as Harvey (AI for legal teams), Dust (an AI assistant) and Replicate (a cloud service for running open-source machine models).

Other significant investments in recent years include Tavus (a generative video producer), Hugging Face (a platform for constructing art models) and Glean (an AI tool for internal company searches).

It's also worth noting that Sequoia was an early backer of Google, co-leading its 1999 Series A round. By 2011, Google had launched Google Brain, its AI research division. This was acquired in 2014 by DeepMind Technologies Ltd., a company credited with the transformative model that paved the way for advanced AI technologies, including ChatGPT.

With a track record of success, it's worth keeping an eye on Sequoia Capital's AI investments. There's a good chance you can learn something.

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