PANEL ARTIFICIAL INTELLIGENCEJune 2016

2 Private and Confidential

ABOUT CREATHOR VENTUREintroduction

200+ investments50+ exits20+ IPOs

3 Private and Confidential

ABOUT CREATHOR VENTUREintroduction

4 Private and Confidential

INSIGHTS INVESTMENT VERTICAL

PANEL DISCUSSION

Q/A

10

40

10

PANEL AGENDAintroduction

5 Private and Confidential

TECHNOLOGY WE USE DAILY MADE POSSIBLE BY AI BREAKTHROUGHStrends

6 Private and Confidential

IT IS REALLY HARD TO MAKE COMPUTERS UNDERSTAND LANGUAGE!trends

Paris Hilton

was in Paris

at the Paris Hilton

listening to Paris

7 Private and Confidential

data explosion infrastructure research

90% data / 2 years

0.5% used

28,450xcheaper storage ($/gigabyte)

10,540xcheaper compute ($/M transistors)

special CPUs/GPUsjust for machine learning

deep learning / neural networks

transfer learning

re-inforcement learning

unsupervised learning

ensemble learning

LSTM

3 MEGA TRENDS DRIVE A.Itrends

8 Private and Confidential

SUMMARY - WHAT IS DIFFERENT THIS TIME IN AI TO JUSTIFY INVESTING NOW?mega trends & technologies

Since 1950s there were 3 AI Winters or boom and bust cycles

more affordablecomputing power

more accessibledata

research break throughs(unsupervised deep learning…)

investments government, start-ups, universities, tec companies

2

1

3

4

9 Private and Confidential

INSIGHT 1 - IMPORTANT MACHINE LEARNING ADVANCEMENT FROM SWITZERLAND (LUGANO)trends

LSTM

10 Private and Confidential

INSIGHT 2 - 2012 BREAK THROUGH: DEEP UNSUPERVISED LEARNING OF YOUTUBE CATStrends

16.00010 million

1 week

11 Private and Confidential

INSIGHT 3 - DEEP LEARNING AND RE-INFORCEMENT LEARNING MIMICS EVOLUTION OF BRAINtrends

12 Private and Confidential

INSIGHT 4 - CHIP / HARDWARE CORPORATES ARE VERY ACTIVE INVESTORSinvestment vertical

13 Private and Confidential

INSIGHT 5 - MACHINE / DEEP LEARNING START-UPS EXIT WAVE STARTED 2014investment vertical

14 Private and Confidential

INSIGHT 6 - TALENT ACQUISITIONS LIKE DEEP MIND WILL OCCUR LESS IN THE FUTUREinvestment vertical

15 Private and Confidential

INSIGHT 7 - MOVING TOWARDS MORE IMMEDIATE BUSINESS VALUE CREATIONinvestment vertical

shadow-detection algorithms predict oil tank volumes for hedge funds

deep learning imagines computer game textures or invents new pixels to transform low resolution pictures to high quality

deep learning auto-corrects and predicts what you are going to write

16 Private and Confidential

INSIGHT 7 - MOVING TOWARDS MORE IMMEDIATE BUSINESS VALUE CREATIONinvestment vertical

new / better data

learning efficiency

insightgeneration

+immediate business value

17 Private and Confidential

INSIGHT 8 - BOTS WILL / SHOULD HELP SIMPLIFY TIME-CONSUMING KNOWLEDGE WORKdeal landscape

18 Private and Confidential

INSIGHT 8 - BOTS WILL / SHOULD HELP SIMPLIFY TIME-CONSUMING KNOWLEDGE WORKdeal landscape

19 Private and Confidential

HARALD NIEDER Red Alpine (VC)

JÜRGEN GALLER 1plusX, Swisscom, Google

MANISH SINGHAL PI Ventures (VC)

RASMUS ROTHE Merantix

PANEL PARTICIPANTSpanel

20 Private and Confidential

EXAMPLE - ETH ZURICH PROJECT PREDICTS ATTRACTIVENESS FOR DATINGinvestment vertical

howhot.io

21 Private and Confidential

BACKUP

22 Private and Confidential

VENTURE CAPITAL IS LIKE KITESURFING

OVERCONFIDENCEDEPENDANCECONDITIONS CHANGECRASHINGBOARD CONTROL

this is actually me

23 Private and Confidential

MACHINE INTELLIGENCE STARTUP LANDSCAPE IS VAST...investment vertical

24 Private and Confidential

EXAMPLE: MAGIC PONY (UK) SOLD TO TWITTER FOR 150 MILLIONinvestment vertical

[...] will be used to enhance our strength in live and video and opens up a whole lot of exciting creative possibilities for Twitter. [...]

25 Private and Confidential

A.I. IS AN ATTRACTIVE INVESTMENT VERTICALinvestment vertical

ROI multiple 6.8x - 30x+

median time exit 3 years

median # FTE at exit 7.5

attractive kpis with short time to exit * network effects driving exit value

buy academic talent

buy Startups

data | models | talents

own data | models

1 2

* m&a analysis by Playfair Capital

26 Private and Confidential

EXAMPLE: TEXTIO CORRECTS YOUR JOB POSTINGS IN REAL-TIMEinvestment vertical