Artificial Intelligence

Narrow AI vs. LLMs: The Unsung Hero of AI Investment

While Large Language Models (LLMs) like ChatGPT capture headlines with their broad capabilities, narrow AI quietly revolutionizes industries with targeted solutions. Unlike LLMs, which can engage in general conversation but may struggle with specialized tasks, narrow AI have the opportunity to excel in specific domains where they can provide unparalleled accuracy and efficiency. For instance, while an LLM might offer general medical advice, a narrow AI system can analyze medical imaging with precision, detecting early-stage cancers that even human radiologists might miss. In finance, as LLMs assist with general customer queries, narrow AI algorithms execute split-second trading decisions based on complex market analyses. For customers, narrow AI translates to immediate applicability, lower barriers to adoption and measurable ROI. 

For angel investors focusing on early stage companies, narrow AI presents a compelling opportunity distinct from the crowded LLM space. While LLM startups often compete for the same general-purpose use cases, narrow AI startups can carve out unique niches in countless industries. A narrow AI solution for predictive maintenance in manufacturing or personalized drug discovery in biotech can quickly become indispensable, potentially leading to faster acquisitions or IPOs. 

When evaluating narrow AI startups, investors should look for problem-solution fit in specific industries, robust data moats, and scalability to adjacent problems. Unlike general-purpose AI, which often requires massive computing resources, many narrow AI solutions can deliver significant value with more modest infrastructure, potentially offering a clearer path to profitability and less dilution for early stage investors. By strategically investing in narrow AI startups poised to reshape industries, angel investors can position themselves at the forefront of practical AI applications, potentially generating significant returns while addressing tangible, high-value problems across the global economy.

One such example of a narrow AI company is Bilby AI. In a world where government policies shift rapidly, staying ahead of regulations is key. Bilby AI, a Brinc portfolio company, uses narrow AI to predict government actions, turning regulatory uncertainty into a strategic advantage. With AI models analyzing over 100M+ documents and billions of data points, Bilby AI acts as a co-pilot for investors and executives, helping them navigate policies with ease. Their focus on structured government data is creating a new market—much like Bloomberg Terminal did for financial data.

What started off as an automated tool to produce faster research reports about China government activity, evolved into a full enterprise software product with an interactive data terminal and APIs for analysts, traders, decision-makers and policymakers. Bilby now serves a range of customers from quantitative hedge funds to governments to multinational corporations across a range of heavily regulated sectors such as financial services and pharmaceuticals. 

Led by experts Dr. Ryan Manuel and Dr. Steve Enright-Ward, Bilby AI is at the forefront of narrow AI innovation, serving blue-chip clients and closing a successful funding round. Bilby’s $3M Seed Round has been fully subscribed by existing investors. Join the the syndicate to learn more.

UpRounds are companies in our portfolio that are raising new funding rounds at higher valuations. Our goal is to simply connect interested parties to these great companies. Simple as that.

Frontier Bio
Vertical: Biotech
Description: Frontier Bio is building the future platform for engineered tissues to use in drug testing and human transplants.
Round Details: Raising a $2M round with $1.2M already committed. 
Pitch Deck

Gaius AI
Vertical: Alternative Protein
Description: Gaius.AI is an AI-platform that increases production rates, reduces cost and improves quality in large food categories such as snacks, cereals, pet food and meat alternatives.
Round Details: Raising a $10M Series A with a lead investor secured.
Pitch Deck

Grounded
Vertical: Consumer
Description: Grounded is a plant-based consumer brand producing healthy, organic, all-natural dairy-free protein shakes, milks and other beverages. They are the #1 plant-based beverage in Whole Foods UK.
Round Details: Raising a £900K Pre-Series A round to support expansion into the US in partnership with Whole Foods US.
Pitch Deck

Interested in connecting with any of our portfolio companies above? Click below for a warm introduction.

Angel Academy #1

Getting Started with Angel Investing

Angel investing is an exciting way to support early-stage startups, giving individuals the chance to be part of the next big thing. At its core, it involves providing young companies with the capital they need to grow. But it’s not just about the money— angel investors also bring valuable mentorship, advice, and connections that can make all the difference for an emerging entrepreneur.

For high-net-worth individuals, angel investing offers an opportunity to diversify beyond traditional investments like equities, fixed income and real estate. While it carries more risk, the potential rewards are substantial. Andreas Bechtolsheim invested $100,000 in Google in 1998 and his stake was worth approximately $1.7 billion when Google went public in 2004. Early-stage investments allow you to participate in the growth of companies from the ground up. Though many startups fail, those that succeed can deliver significant returns, making the risk worthwhile.

This brings us to the Power Law, one of the most important principles in early-stage investing. Simply put, a few investments will drive the majority of your returns. In a typical portfolio, many startups may not succeed, but one or two can deliver astronomical returns that more than make up for the others. This is why diversification is key—spreading your investments across multiple startups increases your chances of backing that rare “home run” company.

Getting started as an angel investor and building a diverse portfolio is easier than ever, thanks to platforms like AngelList that offer syndication options for smaller investments. Whether you’re investing $1,000 or $100,000, the principles remain the same: perform your due diligence, diversify your portfolio, embrace the long-term nature of startup investing and most of all, try to be helpful to your companies. 

From Bashar, the UpRound Author…

Brinc was a side hustle that turned into full time job. I will continue to share parts of my unplanned journey to help you start a side hustle.

I am not only the Co-Founder of Brinc. I was the first Angel Investor into Brinc in 2014 when Manav Gupta the CEO pitched the idea of setting up an accelerator. 10 years later we are now setting up the Brinc syndicate.

I look forward to sharing my personal angel investing journey with UpRound readers!

Thanks for reading!