Artificial Intelligence (AI) Q4 2017 Startup Highlights
- 1. Q4 Startup Highlights ARTIFICIAL INTELLIGENCE January 2018
- 2. Quarterly artificial intelligence (AI) highlights 2 This brief overview of the artificial intelligence sector provides three sections Visit www.venturescanner.com to learn about our complete startup research platform SectorSummary Macro-level viewson the state of the artificial intelligence sector LatestActivity Major funding and exit events from the previous quarter CategoryDiscovery Deep dive into a single artificial intelligence category
- 4. 4 ARTIFICIAL INTELLIGENCE 13 Categories 2,029 Companies $27B Funding Sector stats are continuously changing,data cumulativeas of December2017
- 5. ARTIFICIAL INTELLIGENCE Computer Vision Platforms (199Companies) Computer Vision Apps (233 Companies) Smart Robots (178 Companies) Gesture Control (61 Companies) Speech Recognition (169Companies) Virtual Assistants (210Companies) RecommendationEngines (105Companies) Video Recognition (21 Companies) Context Aware Computing (33 Companies) Speech to Speech Trans (21 Companies) Machine Learning Applications (669 Companies) Machine Learning Platforms (269 Companies) Natural Language Processing (314Companies) The Venture Scanner researchplatform currently tracks 2,029 artificial intelligence startups with $27B in funding The graphic above shows a random sampling of companiesin each category, data cumulativeas of December2017
- 6. Smart Robots ML Platforms Gesture Control Video Recognition CV Platforms ML Applications Virtual Assistants Speech Recognition NLP CV Applications RecommendationEngines Context Computing Speech to Speech Translation 6 Innovation quadrant for artificial intelligence AverageFunding ESTABLISHED HEAVYWEIGHTS PIONEERS DISRUPTORS AverageAge This quadrant shows a relative segmentationof the categories with respect to oneanother, data cumulativeas of December2017 Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform
- 7. 7 VC funding into artificial intelligence grew significantly in 2017 Overall artificial intelligence funding grew at a CAGR of 85% from 2012-2017, and 2017 was 340% of 2016 funding Artificial Intelligence Annual Funding Over Time Data cumulativeas of December2017 Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform 0 2 4 6 8 10 12 14 16 2011 2012 2013 2014 2015 2016 2017 Funding($B) Q1 Q2 Q3 Q4
- 8. 8 All quarters’ funding grew significantly year over year The funding in Q4 2017 was 236% of the funding in Q4 2016, and the funding in Q3 2017 was 449% of the funding in Q3 2016 Artificial Intelligence Quarterly Funding Over Time Data cumulativeas of December2017 Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform 0 1 2 3 4 5 6 2011 2012 2013 2014 2015 2016 2017 Funding($B) Q1 Q2 Q3 Q4
- 9. 9 Exits within the space are on a general upward trend Overall artificial intelligence exits grew at a CAGR of 38% from 2012-2017, and the exits in 2017 were 175% of the exits in 2016 Artificial Intelligence Exit Events Over Time Data cumulativeas of December2017 Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform 0 10 20 30 40 50 60 70 80 2011 2012 2013 2014 2015 2016 2017 ExitEvents(AcquistionsandIPOs) Q1 Q2 Q3 Q4
- 11. 11 Artificial intelligence funding events were mostly early stage in Q4 2017 There were 117 funding events this quarter, 62% of which were Seed and Series A Recent Artificial Intelligence Funding Round Counts Graphs shows only the funding rounds listed therein Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform 0 5 10 15 20 25 30 35 40 45 Seed A B C D Late Stage FundingEvents Funding Event
- 12. 12 Smart robots companies received the most funding in Q4 2017 Artificial intelligence startups raised $3.3 billion over the last quarter, with smart robots companies raising the most funding at $883 million Quarterly Artificial Intelligence Category Funding Companiesare categorized by function, and therefore can exist in multiple categories. Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform 0 100 200 300 400 500 600 700 800 900 1000 QuarterlyFunding($M)
- 13. 13 Recent artificial intelligence funding events Notable Recent Artificial Intelligence Funding Events Company FundingType Amount Date Series C $460,000,000 Nov 1, 2017 Series C $400,000,000 Nov 15, 2017 Series C $227,000,000 Nov 29, 2017 Private Equity $117,000,000 Nov 7, 2017 Series C $100,000,000 Oct 20, 2017 Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform The top 5 artificial intelligence funding events accounted for 40% of quarterly funding
- 14. 14 Recent artificial intelligence exit events Notable Recent Artificial Intelligence Exit Events Company Acquirer Amount Date $81,252,495 Nov 3, 2017 Unknown Dec 20, 2017 Unknown Nov 28, 2017 Unknown Oct 23, 2017 Unknown Oct 19, 2017 There were 10 artificial intelligence exits this past quarter, all of which have been acquisitions Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform
- 15. Category Discovery – Deep Learning/Machine Learning Applications Every quarter a newcategory will receivea deep dive,providing comparisonsto other categories and discussingtrends 15
- 16. 16 Machine learning applications is the leading category within artificial intelligence The machine learning applications category accounts for 35% of funding in the sector and saw 7% growth last quarter Venture Investing in Artificial Intelligence Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativeas of December2017 Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 2 4 6 8 10 12 14 GrowthfromPreviousQuarter Funding($B) Previous Total Quarterly Funding Percent Growth
- 17. 17 Companies within machine learning applications are generally better funded than their peers Machine learning applications have a median funding $3M higher than the average of other categories, and a third quartile that is $6M higher Artificial Intelligence Category Funding Quartiles Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativeas of December2017 Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform 0 5 10 15 20 25 30 35 40 45 FundingQuartiles($M) First Quartile Median Third Quartile
- 18. 18 Machine learning applications funding grew in 2017, while funding events stayed relatively flat Overall machine learning applications funding grew at a CAGR of 79% from 2012-2017, and 2017 funding was 407% of 2016 funding Machine Learning Applications Quarterly Funding Data cumulativeas of December2017 Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform - 10 20 30 40 50 60 70 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 FundingEvents Funding($B) Funding Events
- 19. 19 Machine learning applications funding amounts have shifted to Series B Machine Learning Applications Funding Amount By Round In Q4 2017, Series B was the biggest funding round and accounted for 34% of total VC funding Graphs shows only the funding rounds listed therein. Data cumulativeas of December2017 Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform - 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 Funding($B) Seed A B C D Late Stage
- 20. 20 Funding within machine learning applications is moderately concentrated Machine Learning Applications Companies with Large Funding Amounts Company LatestRound Amount Location Private Equity $3,100,000,000 China Undisclosed $1,000,000,000 Pittsburgh,USA Series D $359,000,000 Cambridge, USA Undisclosed $267,250,000 Los Angeles, USA Series E $251,200,024 Provo, USA The top 5 machine learning applications companies by total funding account for 38% of overall category funding Visit www.venturescanner.comto learn more about our artificial intelligenceresearch platform
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