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April 2017

Artificial IntelligenceStartup Market Trends and Insights

Artificial intelligence (AI) report outline

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This report provides an overview of the artificial intelligence sector and is broken down into three sections

Sector Description

High-level sector metrics with sub-category

definitions

Trends & Insights

Infographics and data points for 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 research platform

Artificial Intelligence Sector Description

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AI startups are creating new businesses in 13 categories

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Artificial Intelligence

Learn about our full 1730 company report with $13.3B in funding

The graphic above shows a sampling of companies in each category, stats as of April 2017

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

Machine Learning - Applications Machine Learning - Platform

Natural Language Processing

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

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Innovation quadrant for artificial intelligence

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ESTABLISHED HEAVYWEIGHTS

PIONEERS DISRUPTORS

This quadrant shows a relative segmentation of the categories with respect to one another, data as of April 2017

Speech to Speech Translation

Speech Recognition

Smart Robots

Machine Learning Apps

Recommendation Engines

Computer Vision Platforms

Natural Language Processing

Machine Learning PlatformsVirtual Assistants

Computer Vision Apps

Gesture Control

Context Aware Computing

Video Content Recognition

AI startups play in many different categories (1 of 2)

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Computer Vision/Image Recognition Applications192 Startups, $930M Total FundingCompanies that utilize technology to process images for vertically specific use cases, such as searching for a retail item by taking a picture

Category stats as of April 2017

Context Aware Computing 33 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

Deep Learning/Machine Learning Platforms 217 Startups, $1.6B Total FundingCompanies that build computer algorithms to optimize results based on existing data, such as for predictive data models

Natural Language Processing269 Startups, $1.6B Total FundingCompanies that build algorithms that process human language input and convert it into understandable representations, such as mining text into data

Computer Vision/Image Recognition Platforms184 Startups, $1.7B Total FundingCompanies that build technology that process and analyze images to derive information and recognize objects from them

Deep Learning/Machine Learning Applications 526 Startups, $5.9B Total FundingCompanies that use machine learning algorithms on existing data in vertically specific use cases, such as detecting banking fraud

Gesture Control 59 Startups, $627M Total FundingCompanies that enable one to interact with devices through gestures, such as controlling video game avatars through body motion

Personalized Recommendation Engines 89 Startups, $194M 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)

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Smart Robots145 Startups, $2.6B Total FundingRobots that can learn from experience and act autonomously based on conditions, such as retail robots that help customers find items in stores

Category stats as of April 2017

Speech to Speech Translation 21 Startups, $42M Total FundingCompanies that recognize and translate human speech in one language into another language automatically and in near-real time

Virtual Assistants 160 Startups, $824M Total FundingSoftware agents that perform everyday tasks and services for an individual based on commands, such as customer service chatbots on websites

Speech Recognition 155 Startups, $782M 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 23 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

Artificial Intelligence Sector Trends & Insights

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Investing into artificial intelligence happens in a variety of categories

The Machine Learning Applications category accounts for 35% of venture funding and 25% of total companies in the artificial intelligence sector

Venture Investing in Artificial Intelligence

Companies are categorized by function, and therefore can exist in multiple categories. Data as of April 2017

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VC Funding Count

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VC funding into artificial intelligence has grown significantly in recent years

Overall artificial intelligence VC funding grew at a CAGR of 49% from 2011-2016, and 2017 is on track to be the best funded year ever

Artificial Intelligence Funding Over Time

Data as of April 2017

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Artificial intelligence funding events in 2016 were early- to mid-stage

Artificial Intelligence Funding Amount By Round

Series B and C rounds account for 63% of the AI funding amount in 2016

Graphs shows only the funding rounds listed therein, data as of April 2017

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Artificial intelligence startups founded in 2012 lead in VC funding

Startups founded in 2012 account for 19% of the sector funding over the last decade, and include companies like Cylance, Thalmic Labs, and Ubtech

Artificial Intelligence Funding By Vintage Year

Data as of April 2017

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Artificial intelligence startups are a global phenomenon

Artificial Intelligence Startup Count by Country

0 875Companies

Data as of April 2017

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Top VC investors are making bets into the artificial intelligence sector

Selected Investor Activity in Artificial Intelligence

The above count represents a subset of overall investor activity, data as of April 2017

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Artificial intelligence exit activity is on an upward trend

Exit events within the artificial intelligence sector grew by 414% from 2011 to 2016

Artificial Intelligence M&A and IPO Events By Year

Data as of April 2017

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Artificial IntelligenceQuarterly Notable Events

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Recent artificial intelligence funding statistics

There have been 112 artificial intelligence funding events since Jan 2017

Recent Artificial Intelligence Funding Round Counts

Graph shows only the funding types listed therein, data as of April 2017

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Recent artificial intelligence funding events

Notable Recent Artificial Intelligence Funding Events

Company Funding Type Amount Date

Undisclosed $1,000,000,000 Feb 13, 2017

Series A $100,000,000 Feb 23, 2017

Series C $100,000,000 Jan 23, 2017

Series D $75,000,000 Jan 31, 2017

Series C $54,000,000 Mar 23, 2017

Artificial intelligence startups raised $2.2 billion since January 2017

Data as of April 2017

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Notable recent artificial intelligence exit events

Notable Recent Artificial Intelligence Acquisitions

There have been 26 exit events since January 2017, including 25 acquisitions and 1 IPO

Data as of April 2017

Company Acquirer Amount Date

$15,300,000,000 Mar 13, 2017

$120,000,000 Feb 8, 2017

$30,000,000 Mar 29, 2017

$20,000,000 Jan 9, 2017

$2,000,000 Feb 19, 2017

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