VENTURE CAPITAL
use the technology . He says , “ We attracted investment without promising any AI or ML . VCs look for good opportunities . Insurtech covers a wide range , from parametric triggers , drones for claims handling , B2B platforms etc . that AI / ML are not required . They may be relevant to the solution you are building but you shouldn ’ t go “ keyword stuffing ” a deck if you ’ re not really using it .”
He points out that AI cannot add value on its own merit and must be used as part of the bigger picture . “ It only adds value if it ’ s being used correctly . Just having “ AI ” isn ’ t a value add on its own .”
Marcus Bartram , General Partner of Telstra Ventures agrees , saying “ For VCs , regardless of the technology being used , we are ultimately looking for extraordinary entrepreneurs and companies that are solving problems in large existing markets or creating new markets , both of which will drive a return on investment .”
He explains , “ Many companies that we see claim to be using AI / ML to help promote their business . It is the responsibility of the investor to ask good questions and conduct good diligence to figure out if the company is really leveraging AI / ML capabilities or not . Nothing turns an investor off faster than a claim that the entrepreneur can ’ t stand behind .”
However , genuinely innovative applications of the technology are a truly exciting prospect for potential investors , he confirms . “ If the problem solving requires crunching through enormous data sets and interpreting this data then there is definitely a place for AI / ML . It can be used to help identify patterns in the data and understand what the data represents .”
Fintech sectors under pressure As a sector of fintech , the insurance market has been slow in its transformation to digitised
98 April 2021