Investment Trends in AI: Insights from the ET Soonicorns Summit 2025
Balanced Approaches to AI Investments
Venture capitalists are increasingly called upon to adopt a balanced approach in their investments. This was a key takeaway from the panel discussion titled “AI Investments in India — Chasing Hype or Backing Real Disruption?” held at the ET Soonicorns Summit 2025 in Bengaluru.
Panel Composition and Insights
The panel featured industry experts such as Manav Garg from venture capital firm Together, Rutvik Doshi of Athera Venture Partners, and Manish Singhal from pi Ventures. The discussion was moderated by Sanjay Swamy of Prime Venture Partners.
Urgency Meets Deliberation
In today’s rapidly evolving AI investment landscape, investors must combine swift decision-making with thoughtful analysis, according to Garg. This dual approach is essential for successfully navigating the complexities of the market.
A Focus on Disruption
pi Ventures, which has been active in AI investments since 2016, aims to target companies capable of surviving and thriving amidst technological disruption. Singhal emphasized this commitment, indicating that the firm seeks resilient ventures that can innovate and adapt.
Evaluating Revenue Models
The panel also delved into the crucial topic of revenue models for AI startups. Doshi highlighted that many companies can achieve $1 million in annual recurring revenue (ARR) within a mere six to eight months. However, he cautioned that assessing long-term sustainability is a significant challenge for investors.
Investment Surge in AI Startups
Citing data from Venture Intelligence, the panel noted that GenAI startups raised an impressive $524 million in the first seven months of 2025. This marks the highest capital influx in five years, surpassing the $475 million raised throughout 2024 and significantly outpacing the $129 million from 2021.
Global Ambition as a Success Factor
Furthermore, the panel underscored the importance of global ambition for AI startups. Doshi pointed out that companies with aspirations limited to the Indian market risk getting left behind. He advocated for a focus on universal business models that can compete on the global stage.
Looking Ahead: The Future of AI Investments
As the landscape of AI technology continues to shift rapidly, investors will need to stay informed and agile. The insights shared at the ET Soonicorns Summit provided a roadmap for navigating the complexities of AI investments effectively.
Conclusion: Key Takeaways
The discussions at this summit highlighted the necessity of balancing ambition with realism. AI venture capitalists are called to evaluate not only immediate performance but also long-term sustainability in their investment strategies.
Q&A: Key Questions Raised
1. What is the primary focus for investors when considering AI startups?
Investors are urged to adopt a balanced approach that evaluates a company’s wider ambitions alongside its immediate potential.
2. How quickly can AI companies achieve significant revenue?
Many AI startups can reach $1 million in annual recurring revenue (ARR) within six to eight months.
3. What has been the trend in AI investments recently?
GenAI startups saw a significant investment surge, raising $524 million in the first half of 2025 alone, a record for the past five years.
4. Why is global ambition important for AI companies?
Companies focusing only on the Indian market may face challenges and could be overshadowed by those with broader, universal aspirations.
5. What dual approach should investors adopt?
Investors need to engage in rapid decision-making while also conducting careful deliberation to understand the long-term viability of their investments.
