Artificial Intelligence (AI) report outline
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This report provides an overview of the AI technology sector and is broken down into three sections
Sector Description
High-level sector metrics, innovation quadrant, and
category definitions
Trends & Insights
Infographics and data points for the artificial intelligence
technology 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 research platform
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AI technology startups are creating new businesses in 13 categories
The full Venture Scanner market report and database tracks 1,878 companies
with $18B in funding
ARTIFICIAL INTELLIGENCE
The graphic above shows only a sampling of companies in each category, data as of July 2017
Computer Vision Platform Computer Vision App Smart Robots Gesture Control Speech Recognition
Machine Learning Applications
Virtual Assistants Recommendation Engines Video Recognition Context Aware Computing Speech to Speech Trans.
Machine Learning Platforms
Natural Language Processing
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Innovation quadrant for AI
This quadrant shows a relative segmentation of the categories with respect to one another, data as of July 2017
Average Funding
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
Machine Learning Platforms
Ave
rage
Age
Machine Learning Applications
Smart RobotsComputer Vision Platforms
Recommendation Engines
Speech to Speech Translation
Speech Recognition
Natural Language Processing
Gesture Control
Video Recognition
Context Aware Computing
Computer Vision Applications
Virtual Assistants
AI startups play in many different categories (1 of 2)
6Category stats as of July 2017
Computer Vision/Image Recognition Applications214 Startups, $1.1B Total FundingCompanies that utilize technology to process images for vertically specific use cases, such as searching for a retail item by taking a picture
Context Aware Computing33 Startups, $132M Total FundingSoftware that automatically becomes aware of its environment and adapts its behavior accordingly, such as turning on lights when a room becomes dark
Computer Vision/Image Recognition Platforms191 Startups, $2B Total FundingCompanies that build technology that process and analyze images to derive information and recognize objects from them
Deep Learning/Machine Learning Platforms 256 Startups, $2.9B Total FundingCompanies that build computer algorithms to optimize results based on existing data, such as for predictive data models
Natural Language Processing304 Startups, $2.2B Total FundingCompanies that build algorithms that process human language input and convert it into understandable representations, such as mining text into data
Deep Learning/Machine Learning Applications 570 Startups, $8.3B Total FundingCompanies that use machine learning algorithms on existing data in vertically specific use cases, such as detecting banking fraud
Gesture Control 60 Startups, $694M Total FundingCompanies that enable one to interact with devices through gestures, such as controlling video game avatars through body motion
Personalized Recommendation Engines 102 Startups, $1.5B Total FundingCompanies that predict the preferences and interests of users and deliver personalized recommendations to them, such as music playlist building software
AI startups play in many different categories (2 of 2)
7Category stats as of July 2017
Smart Robots168 Startups, $2.8B Total FundingRobots that can learn from experience and act autonomously based on conditions, such as retail robots that help customers find items in stores
Speech to Speech Translation 21 Startups, $45M Total FundingCompanies that recognize and translate human speech in one language into another language automatically and in near-real time
Virtual Assistants 186 Startups, $1.3B Total FundingSoftware agents that perform everyday tasks and services for an individual based on commands, such as customer service chatbots on websites
Speech Recognition 163 Startups, $1.1B Total FundingCompanies that process human speech and derive meaning from it, such as software that detects voice commands and translates them into actionable data
Video Automatic Content Recognition 24 Startups, $104M Total FundingCompanies that compare a video sample to source files to identify the content through its unique characteristics, such as for copy right enforcement
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Investing into the sector is occurring across a variety of categories
The Machine Learning Applications category accounts for 34% of venture funding and 25% of total companies in the AI sector
Venture Investing in AI
Companies are categorized by function, and therefore can exist in multiple categories. Data through July 2017
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VC Funding Count
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VC funding into AI has accelerated in recent years
Overall AI VC funding grew at a CAGR of 49% from 2011-2016, and 2017 is currently at 172% of 2016 funding
AI Funding Over Time
Data through July 2017
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AI funding amounts are mostly early-stage events
AI Funding Amount By Round
63% of 2016 AI VC funding went into Series A and Series B events
Graphs shows only the funding rounds listed therein, data through July 2017
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AI startups founded in 2012 lead in VC funding
Startups founded in 2012 account for 26% of the sector funding over the last decade, and include companies like Tautiao, Improbable, and Mobvoi
AI Funding By Vintage Year
Data through July 2017
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AI startups are a global phenomenon
AI Startup Count by Country
Data through July 2017
10000
Companies
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A variety of traditional and corporate investors are making bets into AI
Selected Investor Activity in AI
The above count represents a subset of overall investor activity, data through July 2017
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Exits within the AI space have grown in the past few years
Exit events within the AI sector grew by 117% from 2013 to 2016, and 2017 is currently at 108% of the 2016 total
AI M&A and IPO Events By Year
Data through July 2017
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Recent AI funding statistics
There have been 115 AI funding events from April 2017 through June 2017
Recent AI Funding Round Counts
Graph shows only the funding types listed therein, data as of July 2017
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Seed Series A Series B Series C Series D Series E Late Stage
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Recent AI funding events
Notable Recent AI Funding Events
Company Funding Type Amount Date
Series D $1,000,000,000 April 7, 2017
Series B $502,000,000 May 11, 2017
Private Equity $231,000,000 May 10, 2017
Series D $180,000,000 April 6, 2017
Series A $102,000,000 June 14, 2017
AI startups raised $3.5 billion from April 2017 through June 2017
Data as of July 2017
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Recent AI exit events
Notable Recent AI Exit Events
Company Acquirer Amount Date
$200,000,000 May 14, 2017
Unknown Jun 26, 2017
Unknown Jun 16, 2017
Unknown Jun 9, 2017
Unknown Jun 8, 2017
There have been 16 AI exits from from April 2017 through June 2017, including 13 acquisitions and 3 IPOs
Data as of July 2017
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