A report providing an overview of the Artificial Intelligence (AI) startup landscape, graphical trends and insights, and recent funding and exit events. Contact info@venturescanner.com to learn more!

1. Venture Scanner is your analyst and technology-powered startup research firm
April 2017
Artificial Intelligence
Startup Market Trends and Insights

2. Artificial intelligence (AI) report outline
2
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

3. Artificial Intelligence
Sector Description
3

4. AI startups are creating new businesses in 13 categories
4
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.

5. 5
Innovation quadrant for artificial intelligence
AVERAGE FUNDING ($M)
AVERAGEAGE(YEARS)
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 Platforms
Virtual Assistants
Computer Vision Apps
Gesture Control
Context Aware
Computing
Video Content
Recognition

6. AI startups play in many different categories (1 of 2)
6
Computer Vision/Image Recognition Applications
192 Startups, $930M Total Funding
Companies 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 Funding
Software 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 Funding
Companies that build computer algorithms to
optimize results based on existing data, such as for
predictive data models
Natural Language Processing
269 Startups, $1.6B Total Funding
Companies that build algorithms that process human
language input and convert it into understandable
representations, such as mining text into data
Computer Vision/Image Recognition Platforms
184 Startups, $1.7B Total Funding
Companies 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 Funding
Companies that use machine learning algorithms on
existing data in vertically specific use cases, such as
detecting banking fraud
Gesture Control
59 Startups, $627M Total Funding
Companies 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 Funding
Companies that predict the preferences and interests
of users and deliver personalized recommendations
to them, such as music playlist building software

7. AI startups play in many different categories (2 of 2)
7
Smart Robots
145 Startups, $2.6B Total Funding
Robots 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 Funding
Companies that recognize and translate human
speech in one language into another language
automatically and in near-real time
Virtual Assistants
160 Startups, $824M Total Funding
Software 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 Funding
Companies 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 Funding
Companies that compare a video sample to source
files to identify the content through its unique
characteristics, such as for copy right enforcement

8. Artificial Intelligence
Sector Trends & Insights
8

9. 9
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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100
200
300
400
500
600
0
1
2
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CompanyCount
TotalFunding($B)
VC Funding Count

10. 10
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
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TotalFunding($B)

11. 11
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
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FundingAmount($B)
Late Stage Series D Series C Series B Series A Seed

12. 12
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
0.0
0.5
1.0
1.5
2.0
2.5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TotalFunding($B)
Year Founded

13. 13
Artificial intelligence startups are a global phenomenon
Artificial Intelligence Startup Count by Country
0 875
Companies
Data as of April 2017

14. 14
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
0
5
10
15
20
25
30
35
NumberofInvestments
Number of Investments Number of Companies Backed

15. 15
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
0
5
10
15
20
25
30
35
40
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
NumberofExits
Public Acquired

16. Artificial Intelligence
Quarterly Notable Events
16

17. 17
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
0
5
10
15
20
25
30
35
40
45
Seed Series A Series B Series C Series D Late Stage
FundingEventCount

18. 18
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

19. 19
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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