WELCOME TO THE AI FUND

Artificial intelligence refers to algorithms and computers that can perform tasks that were once left to humans. According to McKinsey, AI just by itself is projected to add another $13 trillion to the world economy over the next decade. In addition, this key technology powers and augments many other technologies. Our AI Fund is focused on companies that make critical use of AI to innovate. It’s a chance to invest in a diversified portfolio of ~20-30 venture investments that use AI to change how business is conducted. We believe AI will be a core tool for forward-looking technology startups and a potentially powerful area for focused investing.

ABOUT AV’S AI FUND

AV’s AI Fund will invest in ventures that are focusing on innovative products and services heavily leveraging AI, as well as potentially some AI technology developers. Investments will be sourced and vetted by a full-time Focused Fund as well as other actively managed AV Funds and diversified by sector, stage, geography, and lead investor. Diversification cannot ensure a profit or protect against loss in a declining market. It is a strategy used to help mitigate risk. Finally, we’ll reserve a healthy ~20-25% of the fund for follow-on investments to invest more in those ventures breaking out from the pack.

Portfolio of ~20-30 companies diversified by sector, region, and lead investor.
Invested over ~12-18 months, with a large reserve (~20-25%) for follow-ons
Co-invest alongside other established venture firms or syndicates
10-year term; One capital call: AV charges an amount equivalent to a 2% annual management fee for the fund’s 10-year term; fee discounts for commitments of $500k+. After capital contributions, including the management fee, allocable to an individual portfolio company investment are returned to investors, AV splits profits realized on that investment 80/20 (80% to investors and 20% to AV) - this calculation is done for each investment made by the Fund. Different funds have different profit-sharing structures; see AV's full Fees & Profit Sharing disclosure here.
All deals are vetted through our disciplined scoring and approval process
Minimum investment $10,000, maximum investment $3,000,000. Come tax time, you receive a single K-1, and we deliver it by March so that you have plenty of time to file prior to the deadline.
Membership in the AI Venture Club, where you can review and opt-in to one-off Syndication investment opportunities in portfolio companies our funds are already investing in
Open to accredited investors; fund limited to 249 total and $10M max; no limits on qualified purchasers

Read more about the fund, including risks, and the AV Syndicate in the attached background materials to the right.

ABOUT ALUMNI VENTURES

Alumni Ventures is in an excellent position to identify, access, and create a portfolio of AI investments. Powered by a global network, Alumni Ventures is one of the most active venture firms in the U.S., routinely co-investing with other established VCs with experience in a wide variety of sectors, stages, and regions. In addition, we can invest in follow-on rounds of some of the 1,100+ companies in our existing portfolio—in ventures that fit the focus of this fund. Finally, we have experience sourcing, evaluating, and completing AI investments.

Alumni Ventures provides smart, simple venture portfolios to accredited investors at accessibly low minimums.

Two dozen diversified fund families, including 18 alumni funds, and over 9,000+ investors—with many from top universities such as Harvard, MIT, Stanford, etc.
Portfolios diversified across sector, stage, geography, and lead investor
Co-investing alongside other established venture firms
#1 Most active venture firm in the US (PitchBook 2022), having invested in 1,100+ companies to date

OUR PROCESS

Investments in the Alumni Ventures AI Fund are sourced by our dedicated Focused Fund team and our Alumni Funds. All deals are rigorously vetted and scored by the sponsoring fund, its Investment Committee, and the AV Investment Committee to ensure it’s a good investment.
Once the deal is approved through that process, it is then considered for possible inclusion in the AI Fund by the AV Nominating Committee. This team of senior AV investing professionals will review the opportunity to ensure it fits the Fund’s thesis while simultaneously achieving stage, region, and lead investor diversification targets.
Our deal funnel and evaluations are supported by Alumni Ventures and its staff of ~150 investing professionals, executives, and back-office staff, located in six regional offices.

AI FUND PORTFOLIO THESIS

As defined by PwC, “AI is a collective term for computer systems that can sense their environment, think, learn, and take action in response to what they’re sensing and their objectives.”

AI and machine learning are promising areas for a Focused Fund. First, this is a sweet-spot technology, well developed but with considerable room to grow.

AI has been accelerated by the widespread increase in sensors to gather huge amounts of data, the growth in cloud-based services to radically step up computing power and use of all that data, and the development of smart APIs. All these changes make it much more feasible to create applications using AI.
There’s scarcely any major industry that hasn’t already been impacted by modern AI.
But there’s considerable upside. By 2025, the AI industry could be worth nearly $16T.

More specifically, here’s why we find the AI & ML sector so compelling:

Benefits. It’s estimated that AI will generate up to $3T of business value and over 6 billion hours of worker productivity in 2021. Further, it will lead to an over 25% increase in GDP by 2030. This is due to greater labor productivity, consumer demand, and better insights.
Broad utility. AI is being used in a variety of industries, from software to healthcare, biotech, finance, manufacturing, robotics, communications, entertainment, insurance, transport/logistics, energy, customer service/experience, and much more.
Ubiquity. It’s estimated that 75% of commercial enterprise apps will use AI this year and that 90% of large organizations have a dedicated investment in the tech. For consumers, the technology is so seamless that it is in many cases invisible. In one survey, about a third thought they used AI-enabled tech. The actual percentage was over two-thirds. And this is a global phenomenon.
Increasing need. Today we create more data in a few hours than we did from the birth of homo sapiens to 2003. And this accumulation will grow, with global data increasing over 60% by 2021. In addition, AI will be at the basis of 80% of emerging technologies.
Investment potential. Both short term and longer term, AI looks like a promising sector. In the first quarter of 2020, venture funding for AI was over $60B, and PitchBook notes that 2021 has seen a strong start for AI startups. In addition, the appetite for AI investments is now global. Finally, the venture market is now expanding from investing in concept companies building the fundamental tech to applications across a broad range of sectors.

>>For more on the fund, see our presentation—available at the right.

PREVIOUS ALUMNI VENTURES AI INVESTMENTS
Below is a sample of investments Alumni Ventures has previously made in AI and machine learning sector.

AI. Reverie is an AI company that creates synthetic data in order to help organizations train their machine learning vision algorithms in a more cost-effective and efficient way.
Dataminr is the world's leading real-time information discovery platform, leveraging AI/machine learning in detecting and disseminating critical events for businesses and governments.
Undisclosed is a tech-enabled staffing platform that utilizes automation and machine learning to enhance the hiring process by hiring better candidates in a more efficient manner.
Geospiza is a SaaS company helping predict natural disasters by integrating data from multiple sources and utilizing proprietary machine learning algorithms.
Groq is a developer of computers for the next generation of machine learning designed to be both high performance and highly responsive.
Kognition combines real-time data streams, AI, real-time response, and continuous machine learning to manage industrial and commercial properties.
Smartvid.io is a smart AI-based identification of safety and machine-trained incidents at construction sites.
Unlearn.Ai is a computational science company that builds machine learning platforms to create biological digital twins for the healthcare and pharmaceutical industries.
Vryill is a developer of an AI tool designed to focus on video insights, licensing, and content marketing.

AV’S SECRET SAUCE: AN UNSURPASSED NETWORK

We are uniquely positioned to identify and access a large pool of diversified and well-vetted investments. We have alumni connections to some of the country’s top universities—as well as established accelerators, incubators, and venture firms. We have an unusually large, connected, and experienced team getting up every day to access the very best investment opportunities. The team is supported by an AV back-office staff, allowing the team to focus on deals.

EXTRA BENEFIT: ONE-YEAR MEMBERSHIP TO AI VENTURE CLUB
Every investor in the AV AI Fund will automatically become a member of our AI Venture Club. The Club offers the following benefits:

Opportunity to gain additional exposure to individual portfolio companies through single asset funds
Network and learn with others interested in pre-seed and seed investing
Educational opportunities, invitations to virtual events, and the ability to personally support portfolio companies

Updates on your fund and portfolio

NEXT STEPS

If you wish to invest, you can commit below; minimum is $10K and maximum is $3M
Once you make a commitment, our Investor Relations team will walk you through the investing process. It takes 20 minutes max for most people
Note that you can also invest through an IRA (for new investors, this takes ~3-4 weeks to execute)
Space is limited to 249 spots for accredited investors and $10M max; first come, first serve

>>For subscription documents and a description of our fees and performance, see the documents at the right.

AV AI Fund 3

Access Data Room & Fund Materials Here