Are you interested in the next big thing in artificial intelligence? I recently found a list of 247 AI startups in the US that are currently being supported by the renowned technology investment fund Y Combinator. I hope to share this insight with you so that even casual readers can get an idea of the problems that people are trying to solve using AI.

In today’s rundown:

• Targeted audience: AI enthusiasts, investors, indie developers, and techies in general.

• 247 YC-backed AI Startups.

• Analysis of the list.

Read time: 1 minute.

247 YC-backed AI Startups

For the non-business savvy readers, what is VC?

Venture capital is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue, or both).

Venture capitalists are investors who provide capital to these startup companies in exchange for an equity stake. These investors take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful and generate significant returns.

Why should you care?

Do you know that more than 50% of VC funding is used for AI startups? Also, more than 50% of Beehiiv's newsletter is about AI 😂 AI Something is just a dime in a dozen! So, if you’re reading this and subscribing, know I appreciate you! ❤️ 

Anyway, back to the topic: This list is evidence of the significant growth that the AI landscape is poised to experience. This file helps us see the trends in AI startups in the US, what problems they are solving, who their target customers are, and so on. In general, it will be beneficial for anyone interested in the trends of AI applications in the near future, and aspiring founders can learn from it.

Tracking this list might help you find the next promising AI startup or be inspired by AI advancements.

How to Use This List:

• Identifying Investment Opportunities: If you're an investor, this list can help you find promising startups in your area of interest.

• Competitive Analysis: For entrepreneurs and existing companies, understanding what new entrants focus on can help in strategic planning and identifying potential competition or collaboration opportunities.

• Networking: Knowing the location and focus of these companies can aid in networking, especially if you want to connect with innovators in specific tech hubs or industries.

• Talent Acquisition: For recruitment purposes, this list could guide where innovative talent is clustering, especially in startups that might be on the cutting edge of technology.

View the founder list here.

A quick analysis of the data

Industry Distribution:

• B2B: 160 companies

• Consumer: 26 companies

• Healthcare: 24 companies

• Fintech: 21 companies

• Industrials: 9 companies

• Education: 3 companies

• Real Estate and Construction: 2 companies

• Government: 2 companies

Sub-Industry Distribution (top categories):

• Unspecified B2B: 45 companies

• B2B - Engineering, Product, and Design: 35 companies

• B2B - Analytics: 17 companies

• B2B - Infrastructure: 12 companies

• Healthcare - Therapeutics: 5 companies

• Consumer - Content: 5 companies

• Industrials - Aviation and Space: 4 companies

This data indicates a strong focus on B2B solutions within the AI startups, with significant activity in engineering, product design, and analytics. Healthcare and fintech are also notable sectors.

Geographical Distribution:

The primary locations for AI startups in the YC Winter 2024 batch are:

• San Francisco, CA, USA: 145 companies

• New York, NY, USA: 27 companies

• Austin, TX, USA: 5 companies

• Toronto, ON, Canada: 3 companies

• Bengaluru, KA, India: 2 companies

• Seattle, WA, USA: 2 companies

San Francisco clearly dominates as a hub for AI startups, followed by New York. This is not surprising, and the result just highlights the significance of these cities in the tech and startup ecosystem.

Detailed Exploration of Technologies or Solutions

Analysis of Greg's List:

Industry Distribution:

• B2B: 32 companies

• Consumer: 10 companies

• Healthcare: 5 companies

• Government: 2 companies

• Real Estate and Construction: 1 company

• Education: 1 company

• Fintech: 1 company

• Industrials: 1 company

Geographical Distribution (for companies on Greg's List):

• San Francisco, CA, USA: 32 companies

• New York, NY, USA: 6 companies

• Other locations (Santa Clara, Toronto, Los Altos, Austin, Stanford): 1 company each

The overwhelming majority of companies listed on "Greg's List" are based in San Francisco, indicating a clear regional preference or a high concentration of startups in that area. Additionally, a significant number of these companies are B2B-oriented, pointing to a notable emphasis on business solutions within the list.

Let me know what other tool you want to be reviewed 🧑‍💻 at [email protected]

That’s a wrap! 🌯

Thank you for reading ❤️I hope you will find these insights helpful. Please get in touch with us at [email protected] with suggestions, feedback, or anything!