Venture capital across the globe has never been more obsessed with artificial intelligence (AI). Consider this. Out of the total U.S. deal value — $91.5 Bn, to be precise — 71% flowed into AI investments in the first quarter of 2025 (Jan-March). Of course, this would not have been possible without the SoftBank-led $40 Bn funding secured by OpenAI, a record amount ever raised by a private technology company. But even if we exclude the marquee deal, AI still secured 48.5% of the total investment amount in the US.

Globally, VC funding reached $126.3 Bn in the quarter, up from $118.7 Bn in Q4 2024, despite a drop in deal volume from 8,801 to 7,551. The data underscores how the growing dominance of AI is supercharging investor sentiment even as funding in other sectors continues to taper off.

In India, too, the AI market is poised for significant growth, with projections suggesting it will exceed $17 Bn by 2030. In the past five years, AI-native startups across the country have seen a 5.4x rise in venture capital funding, securing more than $1.5 Bn.

This surge is driven by sustained investor interest and the broader adoption of application-layer solutions, as detailed in Inc42’s latest report titled India’s AI Uprising. A recent C-suite GenAI (generative AI) survey by EY India also indicates that 34% of organisations across the country have moved beyond the proof-of-concept and are integrating existing software to ensure production-ready deployment.

Although the country is still building momentum around foundation models (think of OpenAI or Anthropic, which offer core solutions to power many applications), new-age startups aggressively building out AI capabilities have captured the attention of tech-forward venture firms. Among them is Arise Ventures, an early stage VC player with a sharp thesis that transformative, category-defining innovations will shape the future of business and drive sustainable growth.

Arise was founded in 2020 by Ankita Vashistha, a Stanford alumnus and a seasoned professional in the private equity and venture capital space. The VC firm operates out of Bengaluru and San Francisco, targeting early stage startups in consumer, climate and enterprise tech. It primarily focusses on those operating at the intersection of AI, deeptech and other frontier technologies to build businesses that matter in a fast-evolving global ecosystem.

In the consumer space, the VC firm backs next-generation brands and consumer tech initiatives that are reimagining legacy industries and reshaping everyday experiences. Its climate portfolio centres on sustainable food systems, waste management and broader sustainability solutions to resolve the global climate crisis.

On the enterprise front, Arise invests in B2B SaaS, fintech, healthtech, cybersecurity and core deeptech platforms, supporting companies that drive innovation and enhance operational efficiency.

“Our thesis is built around companies where artificial intelligence and deeptech form the very foundation of the business,” said Vashistha, founder and managing partner at Arise Ventures. “We look for founders who are not only building differentiated technologies but are ready to scale globally.”

With a sector-driven approach, a cross-border investment lens and active involvement in go-to-market (GTM) execution, Arise is not a hands-off capital provider. Instead, it has positioned itself as a strategic partner in building enduring startups and helping them scale across global markets, especially in the US.

The VC firm recently announced the first close of its Fund I at INR 150 Cr, part of an INR 500 Cr corpus aimed at supporting scalable, impact-led businesses. The fund targets pre-seed and seed-stage companies, particularly those demonstrating early revenue traction. It is expected to reach its final close by the end of 2025.

It has already deployed capital into 12 startups from its current fund, maintaining a 70:30 investment split between Indian and the US-based entities. Its India portfolio includes Streamingo.ai (a video intelligence platform), Assiduus (an AI-powered cross-border ecommerce accelerator), Outdoor Goats (a vertical, multi-brand D2C marketplace), Meolaa (an online marketplace offering sustainable fashion and lifestyle products) and Inc42 (a digital media platform focussing on technology and startups).

For Arise, long-term value is not measured by the deal value or volume but by early and meaningful engagement. In fact, 55-60% of........

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