In the AI industry.Startupsclose downIn news that happens from time to time, Mayan Kansal, the founder of InsurStaq.ai, recently announced via LinkedIn that after a year of operation, they had to shut down the company.InsurStaq.ai specializes in providinginsurance industryDevelopment of generative AI applications.
In his statement, Mayan mentioned that while they aimed to overhaul GenAI adoption in the insurance industry and managed to launch a number of cutting-edge products, gained enterprise-grade compliance, and were even hailed as one of the hottest AI startups by the media and VCs, they ultimately couldn't overcome the challenges they faced. In his post, he lamented, "We've built deep relationships with many great mentors, advisors, and stakeholders, and the team has been as effective as a sports team with a shared vision and fearless ambition."
InsurStaq.ai was founded in 2022 by two former engineers, Shivam Kaushik and Mayan Kansal. The company has developed InsurGPT, a large-scale language model specifically tailored for the insurance industry. Last year, InsurStaq.ai received an investment from Faad Network, a term investment fund under Faad Accelerator Labs' "FinShastra" program.
This year, not only has InsurStaq.ai shut down, but a number of other companies, including Indian social media app Koo, SaaS-based AI startup Ninety, and EdTech startup Bluelearn, have also announced the end of their operations. The reasons for these closures include a lack of funding, inability to scale, and rising technology costs.
Experts believe that the future is likely to see a resurgence of more AI startups backed by existing large companies, as they require huge computing resources and a large customer base.