A look at the venture capitalists who are currently investing in AI (artificial intelligence) firms. Although the idea of robots used to be somewhat unsettling, a lot of money is currently being invested in the architecture and systems that enable machines to learn and grow on their own without the assistance of humans. According to PwC's 2018 Moneytree Report, which was just released, $9.3 billion was invested in AI firms in 2017. This enormous number demonstrates the growing interest in technology and the growing understanding of its potential among public and commercial sector donors. Artificial intelligence crosses all business areas, from self-driving vehicle AI operating systems to self-learning language processing platforms.

With close to driverless cars, robots to automate menial tasks, smart virtual assistants to solve your doubts in milliseconds or robots to map diseases, AI is the heart of most intelligent products and services today. The global AI market was valued at $62.35 billion in 2020 and is only expected to develop at a compound annual growth rate of 40 per cent in the next decade. Given this colossal maturation, it comes with no surprise that VC firms are investing in the technology at a heavy pace. VC investors across public and private sectors are becoming increasingly interested in having their share in this tremendously growing sector. PWC's 2020 Money Tree Report outlined AI as an emerging area in the market, with $11.5 billion being invested in AI companies during the first three quarters of last year.

"Smart money" VCs have an enviable investment history, with a pattern of successful exited companies and high returns. And these firms' portfolios can provide important indicators of where tech and innovation is going. We define smart money venture capital firms (VCs) as those firms with the best combination of portfolio valuations and investment outcomes. Our methodology led us to identify 24 venture capital firms that stand above the rest in terms of financial success. So where is smart money going?

"Software eating the world" is the basic philosophy behind all of Andreessen Horowitz's investments. But the Silicon Valley VC firm has a few specific areas of tech that are lighting up its radar right now. With 1.5 billion in a new fund to invest in startups, managing partner Scott Kupor told Business Insider about a few areas that the firm is super excited about: While Kupor called out these four areas specifically, it doesn't mean that the firm is not interested in any company that falls outside the categories. The firm is still looking for entrepreneurs with big ideas that have the software to back it. "For us, we're always looking for companies where software is the differentiating factor of the business," Kupor said.