The Benefits of Launching an "AI for Good" Startup

In the last article, we explained the prerequisites for effective AI for Good innovation.

The best way to bring more AI for Good solutions to the real world is through AI for Good startups, products, and ventures. 

We define an "AI for Good Startup" as a social venture that embeds a commitment to advancing social good as a core KPI alongside profitability and leverages AI in its product or operations. 

AI for Good Startup - AI Generated

Why should you start an AI for Good startup specifically? 

According to YC, there has never been a better time to start an AI startup than right now. 

However, choosing to be an AI social entrepreneur in presents several advantages that can place you far ahead of the curve in this AI revolution.

First, aligning your personal and business goals with a desire to benefit others and contribute to something greater than yourself is deeply fulfilling. It can give you a sense of purpose, passion, and motivation like no other. 

Entrepreneurship is not easy. We've all heard that 90% of startups are failing. 

But I've learned first-hand in my ten-year entrepreneurship journey that if you tie your work to a deeper purpose, your passion and motivation will help you thrive through even the most challenging moments and set you apart from the competition and the ones who fail. 

Second, many investors and VCs worldwide are starting to favor social ventures. Impact investing is a segment dedicated to startups that generate social and environmental value, profitability, and ROI. 

Impact Investment has experienced phenomenal growth: From $420.91 billion in 2022, it expanded to $495.82 billion in 2023, registering a robust 17.8% compound annual growth rate (CAGR). 

Some Impact Investing firms are also reporting a ripple effect across the industry and claiming that the rise of social entrepreneurship is transforming businesses, investor patterns, and industries. 

"As more ventures adopt a purpose-driven approach, a collective movement towards a more socially conscious and sustainable business ecosystem is taking shape." 367 Ventures.

And it's only getting better. According to the global impact investing network (GIIN), the estimated market size of the impact investment industry is $1.165 trillion, with even higher growth projections for coming years. 

All of that sounds wonderful. But why are 90% of AI startups failing? And how can you ensure that your AI startup succeeds? Learn about that in our next blog post.