Investing in Industry 4.0 — The AI Revolution
Innovation in technology has given birth to 4 Industrial Revolutions that have forever changed our world. The way we work, think, and socialize with each other has evolved because of technology. These societal shifts also brought new opportunities for generating wealth.
- 1st Industrial Revolution (Late 18th Century — Early 19th Century): Mechanization — the change in process of work being done by hand or animals to using machinery, was the foundation of this revolution (Source: Institute of Entrepreneurship Development). The invention of the steam engine, spinning jenny, cotton gin, and telegraph as well as the introduction of factories brought about efficiency and economic growth (Source: Investopedia.com).
- 2nd — The Technological Revolution (Late 19th Century — Early 20th): It took about 100 years for the next industrial revolution to occur. With it brought new sources of energy: electricity, gas, and oil. Which helped bring about inventions like the internal combustion engine and the telephone, changing the way we traveled and communicated (Source: Institute of Entrepreneurship Development).
- 3rd — The Digital Revolution (Late 20th Century): Nearly another 100 years go by until mankind experienced the Digital Revolution. The transformation from mechanical to digital was brought on by the creation of computers and the internet. This technology dramatically disrupted industries. (Source: ScienceDirectAssets.com)
- 4th — Industry 4.0 (Happening Now): The 4th industrial revolution is still somewhat contested as we are living it this very moment. The full impact and everything it entails has yet to be revealed. One thing is clear however, Artificial Intelligence (AI), is a major component that we are watching evolve in real-time.
These technological advancements enabled entrepreneurs to amass unimaginable levels of wealth.
The Technological Revolution’s innovations in steel production and railroads allowed Carnegie and Vanderbilt to dominate their respective industries, while Rockefeller’s use of efficient refining techniques revolutionized the oil industry (Source: LumenLearning.com).
The Digital Revolution created modern-day billionaires. Bill Gates developed software for computers while the internet allowed Jeff Bezos to build an online empire.
Now the rise of AI presents unprecedented opportunities for those ready to embrace it. Understanding the nature of AI is crucial to grasping its potential to be the next major driver of innovation and prosperity.
What is Artificial Intelligence (AI)?
AI is cutting-edge technology that enables computers to simulate human intelligence, learning, and problem solving (Source: IBM.com).
Just as Charles Darwin presented the idea that humans evolved from more primitive life forms, computer scientists theorize that the current form of AI is a primitive version of what it could become (Source: Edureka.co) The 3 stages of AI:
Artificial Narrow Intelligence (ANI) — This is what exists today. Different types of AI can be designed to learn and perform specific tasks. They often use Machine Learning, which enables AI to learn and optimize without being constantly programmed (Source: Builtin.com/machine-learning). While AI can learn, it is limited to only learning what it was designed to. It doesn’t have the autonomy to choose what it wants to learn about (Source: Builtin.com/Types-of-Artificial-Intelligence).
Artificial General Intelligence (AGI) — The theoretical future stage where AI actually becomes equal to us humans as far as intelligence.
Artificial Super Intelligence (ASI) — The final stage, where AI surpasses human intelligence.
In addition to the stages, there’s also different types of AI.
Reactive Machine — It doesn’t store memory or perform complex tasks. It just reacts to various inputs, typically using a rule-based system. An example of this is an inbox that filters out spam. However, some can leverage a degree of machine learning, but they don’t improve over time.
Limited Memory — Can store past data and use it to make predictions. Examples are ChatGPT and self-driving cars.
Theory of Mind — A theorized future type of AI. This AI would be able to perceive and pick up human emotions. Then be able to predict future actions based on those emotions.
Self-Aware — Another future type which would go beyond Theory of Mind. This type of AI would have a sense of identity.
(Source: Builtin.com/Types-of-Artificial-Intelligence)
AI: The Next Big Investment Opportunity
As we enter Industry 4.0, AI is positioned to be a transformative force, akin to the steam engine or the internet. Investors who recognize its potential can tap into vast opportunities across multiple sectors.
It seems we are well past the early adopter stage as far as consumer use of AI. As of 2024, already over half of adults in the United States use AI voice search daily (Source: Silicon Valley Bank, “State of the Markets,” 2024).
The surge in interest in AI has significantly impacted the venture capital landscape, with AI-focused companies accounting for nearly half of all capital invested in 2024 (Source: Silicon Valley Bank). Investors are seizing the opportunity, understanding that early involvement in AI could lead to substantial returns as the technology matures and reshapes entire industries.
Unicorn Status
In the world of venture capital, a unicorn is a privately held startup company that is valued at over $1 billion. There are roughly 1,200 companies with this status worldwide (Source: Investopedia.com)
28 of 73 companies that reached this status in the last 18 months were AI companies. The top 25% of those AI companies reached that status in less than 2.5 years, which is probably why the largest deals are going to AI companies. (Source: Silicon Valley Bank)
This chart provided by Silicon Valley Bank, using data from PitchBook Data Inc., illustrates how investments in AI is growing:
According to a US Equity Strategist for JPMorgan, AI-connected stocks generated 30% better returns than US and global indexes since 2023 (Source: JPMorgan.com).
Conclusion
The history of industrial revolutions demonstrates how technological advancements have consistently paved the way for new opportunities and vast wealth creation. As we navigate the 4th Industrial Revolution, AI stands out as the next game-changing technology.
Investors who recognize the immense potential of AI and act decisively will have the opportunity to participate in the creation of the next generation of industry leaders. Just as Rockefeller, Carnegie, and Vanderbilt harnessed the power of their era’s innovations to build empires, modern investors can leverage AI to unlock unprecedented levels of growth and profitability.
In essence, AI is more than just a technological advancement — it’s the catalyst for a new era of economic and societal transformation. The AI revolution is here, and with it comes the chance to redefine industries, create new wealth, and leave a lasting legacy.
What AI opportunities are you most excited about?
How Konzortia Capital leverages AI
My company, Konzortia Capital, is embarking on a journey to revolutionize Private Capital Markets. We are getting ready to launch a whole suite of products aimed at streamlining the entire investment process. These efficiencies will be created by our own proprietary Artificial Intelligence (AI) and Machine Learning (ML) algorithms. Technology that no other competitor in our industry has.
Our tools are designed to give those without specific industry experience, like single Family Offices, a competitive edge in making the right investment decisions.
Deal Sourcing & Matching
Our Konzortia Hub platform will be the first-ever one-stop shop for matching issuers with allocators.
You’ll fill out your profile, including specific data points determined by your investment criteria. You can filter companies based on industry, location, revenue type, previous year’s revenue, total revenue, valuation, number of employees, etc.
Then our algorithm-based smart Recommendation Engine searches our extensive real-time database. It also filters matches based on the company’s criteria, increasing the likelihood of a successful deal, saving everyone time.
Our AI powered matchmaking ensures a comprehensive and efficient approach to finding suitable investment opportunities you can genuinely be excited about.
Evaluation
Konzortia Hub utilizes industry data, benchmarking tools, and automated AI analysis for comprehensive evaluation. It can parse and understand vast amounts of textual data from financial documents. This enables accurate sentiment analysis and trend identification, which is crucial for informed investment decisions.
What would typically take weeks for a team of analysts, our AI can accomplish in minutes.
Execution
Konzortia Hub provides resources for contract signings and funds disbursements:
- Templates available for Term Sheets, SAFE, SAFT, IOI, LOI, and more
- Secure and Compliant Document Signing
- Automated Capital Calls
- Automated Fund Disbursements
You can execute secure transactions with our Distributed Ledger Technology (DLT).
DLT is a decentralized database managed by multiple participants across different locations. The most well-known form of DLT is blockchain, which ensures that all transactions are recorded transparently and securely. This technology eliminates the need for a central authority, reduces the risk of fraud, and increases the efficiency of data management and transaction processing.
Our DLT allows you to digitize your securities so that ownership is easily recorded and verified.
Exit/Trade
The Private Capital Markets industry is highly fragmented. Unlike publicly traded companies, which can be easily traded through broker-dealers, there is no major secondary market for investors to liquidate their stakes in private companies.
We are creating our own secondary market you can use to sell your equity. It’s integrated with the rest of our platforms within our ecosystem, all accessible through a single sign-in.
Konzortia Capital: an Investment Opportunity
I started these ventures because of my first-hand experiences as an entrepreneur and an investor. I knew there had to be a better way to raise capital, I knew there had to be a more efficient way to find investment opportunities. Now that technology has caught up to my vision, we can seize a new era in Private Capital Markets.
Interested in evaluating an opportunity to invest in Koznortia Capital?
Watch this 2 minute video
Schedule a Zoom meeting to discuss this opportunity here.
Do you want to be a part of this industry disruption?
We know there is a need for our platform, we know our technology will solve this need, and we expect our company’s value to soar once investors and founders use it.
However, what we are offering is so much more than an investment opportunity. We value your expertise and insights. Which is why we are extending an invitation to join our Founder’s Circle Program.
The InvestHub Founder’s Circle Program
I’m honored to invite you to our Founder’s Circle.
The program is an opportunity for you to test out the InvestHub platform. We want you to become a beta tester!
Program Goals:
- Build a collaborative community of early adopters.
- Learn insights to identify and address potential issues.
- Optimize user experience.
- Refine features for a successful market launch.
Incentives for Participation:
- Free Access: As a reward for your contributions, get 1 year of free access to the platform post-beta.
- Premium Support: Priority support and troubleshooting assistance.
- Recognition: We’ll feature you in InvestHub’s marketing materials, case studies, and press releases.
- Networking Opportunities: Access to events or forums for you to connect and share insights.
- Continued Collaboration: Invitation to join an Advisory Board or ongoing User Group to continue contributing to platform development.
Interested in joining?
Schedule a meeting with me here.
What financial strategies have you found most effective in achieving and sustaining wealth in your own life? Share your experiences in the comments below!
