Seattle's AI2 Incubator just closed $80M Fund III to back 70 AI startups over 4 years.

Their track record: 90% of graduates raise follow-on funding, 24% get acquired (Xnor.ai to Apple, Lexion to Docusign for $165M).

Key lessons from 10 years of AI startup building:
• Avoid pure developer tools and execution-only teams without deep AI expertise
• Winners pair technical AI depth with vertical domain knowledge
• Focus on real-world applications, not "API with a coat of paint"
• Rolling admissions beat fixed cohorts for experienced entrepreneurs

They invest $600K + $1M cloud credits for 7% equity at $10M cap.

Takeaway: Domain expertise + AI technical depth = fundable startup.

Source: GeekWire

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