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Despite the majority of AI activity being concentrated in SF, several ecosystems between the coasts are actively working to change the narrative.

Illinois is one of them. 😎 📍

Federal funding has played a significant role in driving AI adoption in the Midwest.

The National Science Foundation (NSF), through the National AI Research Institute, has committed to investing $500M over five years to establish 19 institutions as AI hubs in the US.

Four of the 19 lead AI hubs are located in the Midwest.

There are also smaller-scale AI institute hubs in the Midwest (thanks to the NSF). Check them out here.

One of these hubs is at UIUC, which is ranked in the top 5 AI institutes in the country.

I’m bullish that the federal funding for AI research in areas like Champaign, Illinois will lead to the creation of more AI companies.

Encouraging students / researchers to apply their theses to building companies will spur innovation and drive the growth of a vibrant AI ecosystem.

This is a pivotal moment to shape a new narrative for AI adoption and advancement in the Midwest.

By positioning our home as a thriving AI hub with a substantial impact on the field's future, we can unlock unprecedented opportunities for innovation, collaboration, and growth.

To further increase the AI momentum in the Midwest, here are a few critical measures that must be addressed:

Expanding Public Sector Research: To counter the trend of concentrated AI research in Big Tech firms and major universities located in a few superstar hubs, there should be a concerted effort to expand public sector research in widely distributed institutions.

By investing in research capabilities across various regions, the Midwest can cultivate a more diverse and inclusive AI research landscape.

Democratizing Access to Computing Resources and Datasets: To foster advances in AI beyond the dominant superstar hubs, it’s essential to democratize access to computing resources and large datasets.

Ensuring that researchers and developers in the Midwest have access to these critical tools can spur innovation and create opportunities for AI development in new places.

Investing in Talent: Nurturing a skilled and diverse talent pool is key to driving dynamic AI ecosystems in the Midwest.

Investing in AI education / training programs, as well as initiatives that attract and retain talent in the region, will contribute to the growth and success of the AI industry in new places.

Promoting Vibrant AI Development Ecosystems: Actively promoting the emergence of vibrant AI development ecosystems in more regions is crucial.

Creating supportive environments that encourage collaboration, entrepreneurship, and investment can stimulate AI-driven innovation and commercialization in the Midwest, leading to the growth of new AI hubs.

Founders should never solely rely on a pitch deck to receive funding for their startups.

Instead, pitch decks are only used to get your foot in the door / help establish early interest for your idea.

Think of a deck, or even a one-pager, as a trailer for a movie.

Your deck should provide a glimpse into the most promising aspects of your company's story, leaving investors eager to learn more.

You’ll accomplish this by condensing the key highlights of your vision, product, market opportunity, and growth potential into a clear / visually appealing presentation.

Here are my personal do’s and don’ts for pitch decks: (specifically what early-stage investors would want to see)

DO make your deck visually appealing. Avoid overloading it with text / reading directly from the screen. Instead, use the deck as a backdrop to your presentation. Incorporate images / graphs to make your points more engaging and compelling.

DON’T ask an investor to sign an NDA prior to receiving your deck. Investors interact with numerous companies, and similarities between ideas are common. No idea is a new idea. Don’t be overprotective with your idea because ideas matter much less compared to execution.

DO include the most important slides / expand from there. IMO the most important slides to include in an early-stage pitch deck are: team, problem, solution, why now, traction, market size, roadmap, and competition.

DON’T mislead or lie. Be honest about your achievements and potential. Investors will appreciate your transparency.

DO back all assumptions with data. When creating a roadmap, avoid exaggeration and ensure you have a clear course of action.

DON’T oversell the market size. While it's important to demonstrate market potential, avoid making unrealistic claims about the size of the market without credible sources to back it up.

Managing / making the most of your time is essential when it comes to building a startup.

Founders should always be thinking about finding ways to speed up product development, launch, and begin creating a customer feedback loop.

In order to achieve this in the early innings, it might be worth using Generative AI to enhance your development abilities.

The use of Generative AI for tasks like code generation to design can assist with the following:

Decrease Development Time

One of the most significant challenges startups face is the time it takes to develop a product from concept to reality.

However, Generative AI can significantly cut down on this timeline.

By automating certain aspects of code documentation, developers can save 45 to 50% of the time they would typically spend on this task.

This would lead to a quicker product launch.

Accelerate Shipping Process

Time is money in the startup world, and the faster you can ship your product, the sooner you can start generating revenue and gaining feedback from customers.

Generative AI aids in reducing completion time for writing code by 35 to 45%. This means that you can not only launch your product faster but also make iterative improvements at a rapid pace.

Gather Customer Feedback Faster

Customer feedback is invaluable for iterating and refining your product. Generative AI can play a role here too.

By automating certain processes, your team can dedicate more time to analyzing user feedback and implementing necessary changes promptly.

This real-time adaptation to customer needs will help you build a product that truly resonates with your target audience.

Here’s another quick heads-up about our upcoming Hackathon taking place at Drive Chicago!

In addition, we’re hosting a closed fireside discussion on August 25th with my good friend Andy Dunn (founder of Bonobos). He will be discussing his advice for early-stage founders.

Chicago Data Meetup

Startup CPG Chicago Meetup

The Next Evolution of Marketing

Amplify Your Digital Health Startup

Chicago Women Entrepreneurs Mastermind Meet Up

Chi Indie Hacker Happy Hour

VC/Angel Investor: Ask Me Anything

Cap Table Management in the Early-Stages with NowCFO

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