A report providing an overview of the artificial intelligence startup landscape, graphical trends and insights, and recent funding and exit events.

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Artificial Intelligence
Startup Landscape Trends and Insights
November 8, 2016

2. Artificial Intelligence report outline
2
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

3. Artificial Intelligence Sector Description
3

4. 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

5. Artificial Intelligence startups play in many different categories (1 of 2)
5
Computer Vision/Image Recognition (Applications)
176 Startups, $644M Total Funding
Companies that utilize technology that analyze
images for info in vertically specific use cases.
Deep Learning/Machine Learning (Applications)
436 Startups, $3.6B Total Funding
Companies that utilize learning algorithms that
operated on existing data for vertically specific uses.
Natural Language Processing
232 Startups, $1.1B Total Funding
Companies that build algorithms that process human
language input and convert it into representations.
Smart Robots
103 Startups, $1.1B Total Funding
Robots that can learn from their experience and act
autonomously based on their environment.
Computer Vision/Image Recognition (Platforms)
166 Startups, $799M Total Funding
Companies that build technology that analyze
images to derive information and recognize objects.
Deep Learning/Machine Learning (Platforms)
180 Startups, $1B Total Funding
Companies that build computer algorithms that
operate based on their learnings from existing data.
Speech Recognition
120 Startups, $562M Total Funding
Companies that process clips of human speech,
identify the words, and derive meaning from them.
Virtual Assistants
130 Startups, $570M Total Funding
Software agents that perform everyday tasks for an
individual based on feedback and commands.
Category stats as of November, 2016

6. Artificial Intelligence startups play in many different categories (2 of 2)
6
Gesture Control
55 Startups, $630M Total Funding
Companies that enable one to interact and
communicate with computers through their gestures.
Context Aware Computing
33 Startups, $131M Total Funding
Software that automatically becomes aware of its
environment, and adapts its behavior accordingly.
Speech to Speech Translation
19 Startups, $34M Total Funding
Software that recognizes and translates human
speech in one language into another automatically.
Personalized Recommendation Engines
86 Startups, $147M Total Funding
Software that predicts the preferences and interests
of users and delivers personalized recommendations.
Video Automatic Content Recognition
20 Startups, $82M Total Funding
Software that compares a sampling of video content
with a source content file to identify the content.
Category stats as of November, 2016

7. Artificial Intelligence Trends & Insights
7

8. 8
Machine Learning is dominating Artificial Intelligence startup activity
Machine Learning-related categories account for 44% of all venture funding
and 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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100
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450
0.0
0.5
1.0
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CompanyCount
TotalFunding($B)
VC Funding Count

9. 9
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
0
0.5
1
1.5
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2.5
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
TotalFunding($B)

10. 10
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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0.5
1.0
1.5
2.0
2.5
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Funding($B)
Late Stage Series D Series C Series B Series A Seed

11. 11
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
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
TotalFunding($B)
Year Founded

12. 12
Artificial Intelligence startups are a global phenomenon
Artificial Intelligence Startup Count by Country
0 >738
Companies

13. 13
Top VC investors are making bets in Artificial Intelligence categories
Selected Investor Activity in Artificial Intelligence
The above count represents a subset of overall investor activity
0
5
10
15
20
25
NumberofInvestments
Number of Investments Number of Companies Backed

14. 14
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
0
5
10
15
20
25
30
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
NumberofExits
Public Acquired

15. Artificial Intelligence Quarterly Update
15

16. 16
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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Seed Series A Series B Series C Series D Late
Stage
FundingEventCount

17. 17
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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