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Artificial IntelligenceStartup Landscape Trends and Insights

November 8, 2016

Artificial Intelligence report outline

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This report provides an overview of the Artificial Intelligence (AI) sector and is broken down into three sections

Sector Description

High-level sector metrics with sub-category

definitions

Trends & Insights

Infographics and data points around the Artificial

Intelligence sector

Quarterly Activity

Major funding and exit events from the previous

90 days

Venture Scanner reports are built by analysts utilizing our startup database and landscaping platform

Artificial Intelligence Sector Description

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Startups are creating new AI business lines and disrupting old ones

The graphic above shows a sampling of companies in each category, stats as of November 2016

Virtual Assistants Recommendation Engines Video Content Recognition Context Aware Computing Speech to Speech Trans.

Machine Learning - Applications

Computer Vision-Platforms Computer Vision - App Smart Robots Gesture Control Speech Recognition

Machine Learning - Platforms

Natural Language Processing

Artificial Intelligence

Learn about our full report with 1485 companies across 13

categories with $8.9B in funding

Artificial Intelligence startups play in many different categories (1 of 2)

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Computer Vision/Image Recognition (Applications)176 Startups, $644M Total FundingCompanies that utilize technology that analyze images for info in vertically specific use cases.

Deep Learning/Machine Learning (Applications)436 Startups, $3.6B Total FundingCompanies that utilize learning algorithms that operated on existing data for vertically specific uses.

Natural Language Processing232 Startups, $1.1B Total FundingCompanies that build algorithms that process human language input and convert it into representations.

Smart Robots103 Startups, $1.1B Total FundingRobots that can learn from their experience and act autonomously based on their environment.

Computer Vision/Image Recognition (Platforms)166 Startups, $799M Total FundingCompanies that build technology that analyze images to derive information and recognize objects.

Deep Learning/Machine Learning (Platforms)180 Startups, $1B Total FundingCompanies that build computer algorithms that operate based on their learnings from existing data.

Speech Recognition120 Startups, $562M Total FundingCompanies that process clips of human speech, identify the words, and derive meaning from them.

Virtual Assistants130 Startups, $570M Total FundingSoftware agents that perform everyday tasks for an individual based on feedback and commands.

Category stats as of November, 2016

Artificial Intelligence startups play in many different categories (2 of 2)

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Gesture Control55 Startups, $630M Total FundingCompanies that enable one to interact and communicate with computers through their gestures.

Context Aware Computing33 Startups, $131M Total FundingSoftware that automatically becomes aware of its environment, and adapts its behavior accordingly.

Speech to Speech Translation19 Startups, $34M Total FundingSoftware that recognizes and translates human speech in one language into another automatically.

Personalized Recommendation Engines86 Startups, $147M Total FundingSoftware that predicts the preferences and interests of users and delivers personalized recommendations.

Video Automatic Content Recognition20 Startups, $82M Total FundingSoftware that compares a sampling of video content with a source content file to identify the content.

Category stats as of November, 2016

Artificial Intelligence Trends & Insights

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Machine Learning is dominating Artificial Intelligence startup activity

Machine Learning-related categories account for 44% of all venture fundingand 35% of total startup companies

Total Venture Investing into Artificial Intelligence

Companies are categorized by function, and therefore can exist in multiple categories

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VC Funding Count

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Funding into Artificial Intelligence has grown rapidly

Overall Artificial Intelligence VC funding grew at a CAGR of 42% from 2011-2016, and 2016 is on pace to be the highest funding year ever

Artificial Intelligence Funding Over Time

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Artificial Intelligence startups across the spectrum are getting funded

There is a healthy cycle of startup funding in recent years, with both older and younger startups receiving funding

Artificial Intelligence Funding By Type Over Time

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Artificial Intelligence startups founded in 2012 lead in VC funding

Over the last decade, 20% of total AI funding went into startups founded in 2012, which includes companies such as Cylance, Thalmic Labs, Ubtech, and Mindmaze

Artificial Intelligence Funding By Vintage Year

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Artificial Intelligence startups are a global phenomenon

Artificial Intelligence Startup Count by Country

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Top VC investors are making bets in Artificial Intelligence categories

Selected Investor Activity in Artificial Intelligence

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Artificial Intelligence exit activity has grown massively within recent years

Exits within the Artificial Intelligence sector grew by 525% between 2011 and 2016, with 2016 on pace to be the year with highest number of exits

Artificial Intelligence M&A and IPO Events Over Time

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Artificial Intelligence Quarterly Update

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Recent Artificial Intelligence funding events

There have been 61 funding events in the past 90 days, providing $842 million in capital

Funding Statistics from Last 90 Days*

Company Amount Funding Type

$120,000,000 Series B

$100,000,000 Venture

$70,000,000 Series D

$56,000,000 Venture

$50,000,000 Series B

Notable Recent Artificial Intelligence Funding Events

*Graph shows only the funding types listed therein

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Recent Artificial Intelligence exit events

There have been 9 Artificial Intelligence exit events in the past 90 days, consisting of 9 acquisitions

Notable Recent Artificial Intelligence Acquisitions

Company Acquirer Amount Date

$400,000,000 Sept 6, 2016

$350,000,000 Aug 9, 2016

Undisclosed Oct 5, 2016

Undisclosed Sept 20, 2016

Undisclosed Sept 19, 2016

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