Technology startups come to life when individuals recognize a gap in the market, a demand for innovation or a solution to a business problem. Often, these startups are self-funded or “bootstrapped,” but every now and then, an idea alone is enough to attract investors.
In 2022, I attended a pitch where a man presented the potential of ChatGPT to a group of over 30 investors. ChatGPT is an artificial general intelligence system that has the capability to write, design and reimagine. As the presenter elaborated on these capabilities, the room buzzed with excitement. His goal was to raise $20 million to build solutions that complement ChatGPT, deploying the most updated version at that time, GPT-3.
Days after the pitch, the reality of the situation emerged. While the presentation had been compelling, the fundraising objective had not been fully met. I spoke to an organizer and asked, “How much did they raise?” Their response was straightforward but slightly disappointing: “We fell short. We raised US$12 million, but we still have some more follow-up to do.”
Despite falling $8 million short, raising $12 million based on the potential of an AI platform is an impressive feat. It demonstrates not just the power of a good idea, but also the growing importance of technology in our lives.
However, it’s worth noting that the gender gap in the tech industry remains a significant challenge. Women founders often face additional barriers in funding and support, making it difficult for them to realize their full potential. In recognition of International Women’s Day in 2024, CFOtech New Zealand featured an article on the need to bridge this gender gap and provide more opportunities for women in tech.
As we move forward, it will be interesting to see how tech startups continue to evolve. Whether they are based on a cutting-edge AI platform like ChatGPT, or founded by women looking to make their mark in a traditionally male-dominated industry, they represent the bold vision, creativity and enterprise that keep the wheels of innovation turning.
