Investor Type | Firm |
Industries | Hardware (& Manufacturing) • A.I. (& Big Data) • Logistics (& Distribution) • DeepTech |
Stages | Series A |
Investing | Canada |
Investment Range | $1,000,000 - $10,000,000 |
Investment Sweet Spot | $5,000,000 |
X Machina AI is an investment fund specializing in AI-driven companies, primarily focusing on businesses in sectors like Hardware, Manufacturing, A.I., Big Data, Logistics, Distribution, and DeepTech. They offer between $1,000,000 to $10,000,000 in investment, with a sweet spot investment of about $5,000,000, mainly targeting Series A rounds. X Machina AI's strategy revolves around providing public market investors with access to fast-growing AI companies that are typically behind private company structures. They are keen on acquiring AI startups with solid growth profiles but not necessarily the unicorn potential that might draw follow-on funding, catering to Canadian investors looking to shift from traditional sectors like mining and oil & gas to the burgeoning AI sector. Their acquisition criteria consist of companies with $1M to $10M in annual revenue, demonstrating at least 20% annual growth, and are either profitable or at break-even. Their operational approach includes a 12-18 month strategic planning phase that focuses on product positioning, team strengthening, and fund allocation to achieve profitable growth. The core X Machina AI team works with the target company to build this strategic plan, eventually bringing in additional management, product, and sales talent. As the targets reach their growth and profit objectives, X Machina AI moves on to repeat the process with the next acquisition. They additionally provide resources, both human and financial, to acquired companies, intending to operate as 100% owned subsidiaries, leveraging what they term as 'full stack AI.' This framework includes hardware, infrastructure, application layers, and software services, designed to ensure the seamless integration and functionality of AI solutions with greater margins. X Machina AI maintains an active involvement with their portfolio companies, which includes Coindera, Bain Public, and XCS among others, all operating across various sectors utilizing AI to enhance their services.