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SparkLabs Group Deep Tech Sector Overview 2017


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SparkLabs Group has been active in deep tech, or frontier tech, since our inception in 2013. We have invested in a broad definition of deep tech which includes blockchain, VR & AR, transportation, industrial IoT, artificial intelligence, health & wellness (sensor related, genomics, and advanced biotech technologies), and space. Under this definition, 25% of our overall portfolio (38 out of 155 companies across our investment entities) were deep tech investments.

Published in: Technology

SparkLabs Group Deep Tech Sector Overview 2017

  1. 1. Global Influence of the SparkLabs Group Founded in 2013, SparkLabs Group ( comprises of SparkLabs Accelerator, Asia’s premier accelerator network, with operations in South Korea (1st launched in 2012), China, Hong Kong and Taiwan (2018); SparkLabs Global Ventures, a global seed-stage fund; SparkLabs Capital, a late stage investment vehicle, and SparkLabs Ventures, our new early-stage fund for South Korea. Our team previously has led investments in Siri (sold to Apple), DeepMind (sold to Google for over $500M), Spotify (board member), Studio Ex (co-founded, sold to Disney), Hostway (co-founded, sold to a PE fund) and others. We have been advisors to (NYSE: KING), OpenFeint (sold to GREE for $104M), Disney Interactive, and others. We have invested in 155 companies across all of our entities and across 6 continents. Some of our companies are Memebox, which closed $126 million total in their Series C in 2016; Payoff, a leading financial wellness company, closed $46 million Series C in 2016; Andela closed their $24 million Series B in 2016, and was the first investment for the $45B Chan Zuckerberg Initiative; Lifesum closed their $10 million Series B with Nokia Growth Partners leading in
  2. 2. 2016; and Petnet closed a $10 million Series A with Petco as their lead in 2016. We are a young firm that is excited about the future and passionate about helping entrepreneurs across the globe. SparkLabs Group has built a strong early stage deep tech portfolio with investments in AI, VR & AR, autotech, IoT, fintech and health tech sectors. Because of this experience, we were chosen as the exclusive co-investment partners for Entrepreneur First’s Singapore program, the first Barclays FinTech Accelerator class, and the exclusive innovation partner for SongDo, a $35 billion smart city built from the ground up in South Korea. Global Influence of the SparkLabs Group
  3. 3. Artificial Intelligence& MachineLearning 02 VirtualReality& Augmented Reality Transportation, Logistics,Smart Cities&IOT 04 03 Blockchain &FinTech Health& Wellness 01 05 DeepTechInvestment Sectors Space 06
  4. 4. "The  most  transformative  ideas  are  typically  the  most   contrarian  until  they  gain  massive  momentum.   Cryptocurrency  is  one  of  those  ideas.  Digital   currencies  hold  the  promise  of  transforming  the   entire  global  financial  system,  and  yet  we  are  just   beginning  to  see  the  ways  in  which  they  allow  users  to   go  over-­the-­top  of  traditional  financial  infrastructure   and  thereby  reach  parts  of  the  world  that  banks  and   payment  networks  never  could.” Josh  McFarland,   Partner  at  Greylock
  5. 5. BitcoinSurges • If  you  bought  $100  of  bitcoin  7   years  ago,  you  would  have  over   $100  million  today. • Peter  Schiff,  CEO  of  Euro  Pacific   Capital,  says  “Bitcoin  is  a  gigantic   bubble.” • ”Masterluc”,  a  legendary  bitcoin   trader,  predicts  that  bitcoin  will  hit   $15,000  by  the  end  of  2017. • As  of  September  2017,  the  market   cap  for  Bitcoin  is  over  $75  billion
  6. 6. Ether’sRise • Ether  has  risen  3000%  since   the  beginning  of  2017. • As  of  September  2017,  the   market  cap  for  Ether  is  over  $30   billion
  7. 7. TotalValueoftheCryptocurrencyMarket Source:  Coindesk’s State  of  Blockchain Q2  2017
  8. 8. Blockchain& BitcoinVentureCapitalTrends
  9. 9. Blockchain& BitcoinVentureCapitalTrends • Venture  capital  into  bitcoin  and   blockchain startups  have  been  rapidly   increasing  every  year. • In  2016,  venture  capital  in   bitcoin  and  blockchain totaled   under  $500  million,  and  only  a  1%   increase  over  2015.
  10. 10. “As  Larry  Summers  said  at  the  Consensus  Conference  in   early  May,   anyone  who  doesn't  think  blockchain   technologies  will  have  a  significant  impact  on  the   major  systems  of  the  world  is  probably  wrong.   What's  still  unclear  -­ aside  from  their  use  at  the  heart  of   Bitcoin,  Ethereum,  and  every  major  digital  currency  – is   precisely  how  and  where.  There  are  lots  of  distributed-­ database  applications  for  which  a  traditional  database  will  be   more  than  suitable.  But  anywhere  you're  building  a  network   that  has  to  be  resilient  in  the  face  of  bad  actors  (intentional   or  not)  and  where  you  want  to  avoid  granting  just  one   company  or  government  the  ability  to  control  the  ecosystem,   you're  going  to  want  a  blockchain.” Brian  Behlendorf Executive  Director,   The  Hyperledger Advisor,  SparkLabs   Global  Ventures Venture  Partner,   SparkLabs  FinTech
  11. 11. Blockchain& BitcoinVentureCapitalTrends • There  has  been  a  significant  shift   from  bitcoin  focused  investments   to  blockchain focused   investments.
  12. 12. GlobalSpendingTrendsforBlockchain
  13. 13. “We are going through a sociological transformation where bitcoin and the blockchain can be the vehicle to banking the unbanked, insuring the uninsured, governing the poorly governed, and it will keep records and tag every piece of data.” Tim Draper Founder of Draper Associates, DFJ, and the Draper Venture Network. He is also an early bitcoin investor and overall cryptocurrency enthusiast.
  14. 14. Seoul Blocko is  the  leading  enterprise  blockchain company   in  South  Korea  (2015).    World’s  1st  GS  certified   blockchain enterprise,  the  world’s  1st  blockchain service  in    banking  sector,  and  supplied  92%  of   blockchain enterprise  solution  projects  in  Korea  last   year. Blockchain London Origin’s  sophisticated  bond  market  technology   platform  directly  connects  fixed  income  investors   with  large  corporate  borrowers  in  the  bond  market. Part  of  Barclays  Techstars FinTech Program.  SparkLabs   Global  invested  in  their  seed  round. BondMarketsTech SparkLabsDeepTechPortfolioHighlights: Blockchain& FinTech
  15. 15. Seoul Sentbe is  the  leading  bitcoin  remittance  company  in   South  Korea.    The  overseas  remittance  market  in   South  Korea  is  about  $40  billion. Bitcoin Stockholm CRYEX  mission  is  to  provide  equal  access  to  the  FX   market  for  all  market  participants  in  an  easier,  faster,   transparent,  and  more  cost  efficient  way.  CRYEX   objective  is  to  establish  efficient,  pre-­‐ and  post-­‐trade   infrastructure  solutions  for  currency  trading. Blockchain SparkLabsDeepTechPortfolioHighlights: Blockchain& FinTech
  16. 16. London AI  driven  credit  scoring  system.  Aire API  deploys   seamlessly  into  the  existing  web  and  mobile   workflow  of  the  online  credit  application  forms  of   typical  banks  and  lenders Part  of  Barclays  Techstars FinTech Program.   SparkLabs  Global  invested  in  their  seed  round.   Recently  closed  A  round  led  by  WhiteStar and   Sunstone Silicon  Valley SelfScore technology  combines  online  profiles,   phone/sensor  data,  psychometric  questions  and   network-­‐based  feedback  to  provide  smart  credit  scoring   insights  to  users  and  contextual  information. SparkLabs  Global  invested  in  their  seed  round.   Their  Series  A  was  led  by  Accel and  Aspect  Partners. CreditScoringCreditScoring SparkLabsDeepTechPortfolioHighlights: Blockchain& FinTech
  17. 17. "Blockchain is  the  technology  that  is  going  to  have   the  greatest  impact  in  the  next  coming  decades  by   disrupting  services  like  finance,  healthcare,  cybersecurity,   real  estate,  identity  verification,  insurance,  retail,  IoT,   transport  and  many  others.  SparkLabs  has  already   invested  in  a  number  of  blockchain companies  around  the   world  and  we  are  going  to  continue  make  significant   investments  globally  in  this  space  fueling  the  next   generation  of  the  Internet.” Net  Jacobsson,   Co-­founder  &   Partner  at   SparkLabs   Global  Ventures @Net
  18. 18. “AR  excites  me  because  by  the  end  of  the   year  about  400  million  people  will  get   on  it  just  through  Apple  devices  and  it   opens  up  a  new  world  where  every  surface   will  have  new  kinds  of  personalized   meaning  applied  to  it.” Robert  Scoble Partner,   Transformation  Group
  19. 19. • AR/VR  could  hit   $150  billion  revenue   by  2020,  with  AR   taking  the  lion’s   share  around  $120   billion  and  VR  at   $30  billion. AV& VRMarketOverview
  20. 20. • Mobile  AR  could  become   the  primary  driver  of  a  $108   billion  VR/AR  market  by   2021  (underperform  $94   billion,  outperform  $122   billion),  with  AR  taking  the   lion’s  share  of  $83  billion   and  VR  $25  billion. Source:  Digi-­‐Capital AV& VRMarketOverview
  21. 21. VR/AR  investment  is  now  moving beyond  AR/VR  innovator  VCs  to early  adopter VCs,  and  the  next  12  months  could   see  early  majority  VCs  joining  in  the  fun. Source:  Digi-­‐Capital AV& VRMarketOverview Source:  BOM
  22. 22. Source:  BOM Based  on  the  unweighted  average  of  the  aforementioned  projections,  this  market  will  grow  more  than  20-­fold  from   $1.1  billion  in  revenue  in  2016  to  $24.3  billion  in  2020.   AV& VRMarketOverview
  23. 23. Goldman  Sachs  expects  the  following  nine  sectors  to  drive  the  software  market:  videogames,  live  events,   video  entertainment,  healthcare,  real  estate,  retail,  education,  engineering  and  defense.   The  three  biggest   markets  in  both  2020  and  2025  will  be  entertainment,  healthcare  and  engineering. AV& VRMarketOverview
  24. 24. Silicon  Valley DoubleMe provides  a  novel  3D  capture  system,   HoloPortal™,  that  converts  2D  videos  into  dynamic  3D   models  in  real-­‐time  for  various  3D  content  markets Seoul Urbanbase is  focused  on  making  2D  floor  plans  into  3D   models  in  a  matter  of  minutes.  This  dimension  changing   solution  is  powered  by  a  unique  algorithm. VRTech VRTech SparkLabsDeepTechPortfolioHighlights: VR& AR
  25. 25. San  Francisco Emergent  VR,  Inc is  a  technology  startup  in  San  Francisco   building  a  new  way  to  create  and  share  moments  and   memories  using  virtual  reality.  They  are  led  by  VR,  game,   and  animation  industry  veterans  from  Disney,  2K  Games,   and  DreamWorks  Animation. Singapore VRcollab is  a  multi-­‐user  VR  communication  tool  to   replace  floor  plan  and  3D  based  discussion  to  VR-­‐based   discussion.  Allowing  for  an  impressive  experience  and  an   intuitive  understanding  of  both  space  and  design  for   better  workflow  optimization VRTech VRTech SparkLabsDeepTechPortfolioHighlights: VR& AR
  26. 26. “I  believe  VR's  biggest  contribution  to  humanity  is  in   the  mental  health  and  job  training  whereas   entertainment  is  secondary. VR  for  mental  health  and  job  training  is  one  of   the  few  technologies  and  applications  that   return  real  10x-­100x  productivity  gains. Since  VR   directly  accesses  our  visual  cortex,  this  gives  ample   opportunity  for  behavioral  change;;  good  or  ill.  At   Presence,  we  have  a  handful  of  companies  in  our   portfolio  that  treat  autism,  chronic  pain,  and  job   orientation  and  training  in  a  virtual  environment. ” Phil  Chen Partner  at Presence  Capital Presence  has   invested  in  over  30   AR/VR  companies
  27. 27. “Everything  is  getting  connected.  It  started  off  with  PCs   and  routers  and  continues  to  expand  to  every  device  in   your  home  and  in  your  city. But,  it  is  not  the   underlying  connectivity  technology  that  matters   most. That  will  always  evolve,  getting  faster  and  more   ubiquitous  -­ it’s  a  given.  The  question  is  what  can   you  do  on  top  of  the  connectivity? You  need   something  on  the  other  side  to  connect  with  -­ whether  it’s  a  device,  a  service,  a  cloud,  storage   or  whatever  entity  comes  next.  If  you  think  it   makes  sense  to  have  your  car  connected  to  Alexa  in   the  cloud,  then  what  can  you  do  with  that?   Connectivity  provides  a  platform  for  creativity  and   innovation  to  occur,  which  will  bring  the  future." Kurt  Hoppe Global  Head  of   Innovation  -­ Connected  Car  at   General  Motors @kurthoppe
  28. 28. MobilityMarket Source:  Goldman  Sachs  Global  Investment  Research
  29. 29. MobilityMarket Source:  Goldman  Sachs  Global  Investment  Research
  30. 30. MobilityMarket
  31. 31. Source:  Venture  Scanner Mobility& AutoTechStartups
  32. 32. AutoTechMarketMap Source:  Venture  Scanner
  33. 33. CarMakers Communications Software Source:  Business  Insider The  ‘connected  car’  is  creating  huge  new  business  opportunities  for  auto,  tech,  and  telecom  companies.  It  seems   that  everyone  is  entering  this  space  from  car  makers,  communication  companies  and  major  software  companies. ConnectedCarOpportunities
  34. 34. • Self-­driving  cars  is  projected  to  be  a  $87  billion  opportunity  by  2030 • Carmakers  and  technology  developers  building  self-­driving  cars  will  create  opportunities  in  hardware,  software,   and  sensors,  with  software  emerging  as  the  biggest  winner,  even  though  a  fully  autonomous  driverless  car  will   remain  elusive  (Lux  Research)                             Source:  Lux  Research AutonomousVehicleOpportunities
  35. 35. • Sales  of  connected  cars  will  equal  $2.3  trillion  in  2020.  The  current  average  selling  price  of  a  connected  car  is   much  higher  than  the  national  average,  but  that  will  drop  as  carmakers  connect  their  economy  lineups.   • Connected  car  hardware  and  software  will  bring  in  $152 billion  in  2020.  Driver  assistance  systems,  such  as  self-­ parking  features,  will  become  more  common  and  generate  a  lot  of  revenue  for  carmakers. • Shipments  of  autonomous  vehicles  are  expected  to  top  180,000  by  2020. Number of totalconnected carson theroad Shipmentsof autonomousvehiclesby 2020 AutonomousVehicleMarket: 220 MillionConnectedCarsby2020
  36. 36. Connected-CarRevenueFromProvidingSystems AutonomousVehicleMarket: Connected-CarRevenue Source:  Business  Insider
  37. 37. • 44%  of  all  autotech deals  were  early  stage  deals  (Angels/Seed  and   Series  A  rounds).   • By  geography,  California  is  by  far  the  furthest  ahead,  with  more  than   60  deals  at  autotech. • There  has  been  a  lot  of  activity  outside  of  the  U.S.,  especially  in  Asia.   Mobileye,  an  Israeli  company,  went  public,  and  China  and  India  have   seen  a  handful  of  financings  in  autotech industry. TopInvestorsinAutoTechCompanies DealsIntoAutoTechBySeries AutoTechInvestments Source:  CB  Insights
  38. 38. CarVi was started because of a tragic road accident that took away 3 lives of our friends. CarVi and self-­ driving cars solve the same problem: vastly reducing human driving error. However, only a micro-­percentage of consumers will be able to afford a self-­driving car. While all drivers understand the importance of safety on the road, not everyone is able and/or willing to pay a high price for safety features. CarVi aims to bring the most affordable safe driving technology. Dinesh  C Co-­founder  &  Chief   Creative  Officer   at  CarVi
  39. 39. SparkLabsDeepTechPortfolioHighlights: Mobility
  40. 40. Seoul FESCARO  is  a  specialized  automotive-­‐security   startup  developing  a  solution  which  can  be   applied  to  mass  production  of  self-­‐driving  and   connected  cars.   Founded  by  former  ECU  developers  and  white   hackers,  it  is  currently  developing  a  new   leading-­‐edge  technology. Seoul Rokwon IT  develops  an  IOT-­‐based,  real-­‐time   monitoring,  control,  and  3D  visualization   solutions  for  logistics  and  supply  chain   management.   The  company’s  Virtual  Terminal  and  Eagle  Eye   Server  products  enable  clients  such  as  ports  to   reduce  costs  by  streamlining  processes  through   sensor-­‐based  real-­‐time  data. San  Francisco LocusLabs provides  the  platform  and  tools  that   enable  apps  to  be  location-­‐aware  on  a  micro   level.  LocusLabs is  going  a  level  deeper  than   existing  mapping  solutions  by  not  only  mapping   just  places,  but  people,  products  and  things   using  technology  that  scales.   Current  customers  include  United  Air,  American   Airlines,  British  Airways,  Kayak  and  others.   AutoTech TransportationLogistics LocationLogistics SparkLabsDeepTechPortfolioHighlights: AutoTech& Logistics
  41. 41. “Industrial  IoT  will  dramatically  change  how  many   Fortune  500  companies  operate.    This  is  not  only  about   environmental  sensors  and  sensors  integrated  into  the   manufacturing  processes,  but  we  believe  real-­time   visualization  along  with  all  of  this  new  data  is   essential  to  companies  making  the  best  and  right   decisions  at  critical  moments.”   N3N  was  Cisco’s  first  internet  of  things  investment  in  the  world.    The   company  is  an  IoT  visualization  company  based  in  Seoul  and  San   Jose,  CA.    Their  clients  include  Samsung  Electronics,  LG  Display,   Posco (3rd largest  steel  company  in  the  world),  Hyundai  Motors,  and   others.   Jimmy  Kim Co-­founder  &   President  of  N3N   and  Co-­founder  of   SparkLabs
  42. 42. Our  team  believes  Industrial  IoT  will  be  bigger  than  the  consumer  IoT  space.    With  over  13  billion  connected   devices  in  the  world  and  millions  more  coming  online  every  week,  the  amount  of  data  that  we  are  collecting  is   amazing.    From  street  signals  to  manufacturing  plants  to  construction  cranes  to  jet  engines,  the  aggregate  data   companies  collect  will  be  overwhelming  and  exciting  at  the  same  time  as  they  try  to  figure  out  what  to  do  with  it   and  how  best  to  analyze  and  apply  the  knowledge  gained  from  all  of  this  new  data. The  SparkLabs  Group  team  identifies  3  current  areas  of   innovation  and  growth  in  the  industrial  IoT  space: • Artificial  Intelligence  /  Machine   Learning • Security • Sensor  Driven  Computing IndustrialInternetofThings: SparkLabsInsight
  43. 43. Source : BI Intelligence Estimates • The  number  of  IoT  devices   connected will  increase  to  25   billion  by  2020. • Connected  homes  seems  to  be   the  leading  sector,  however,  all   sectors  are  expected  to   exponentially  grow.   As  prices  for  semi-­conductors  fall  and  connectivity  technology  develops,  more  machines  are  going  online.   Appearance  of  smart  objects  is  the  main  driver  of  IoT industry’s  development. IndustrialInternetofThings: MoreMachinesareGoingOnline
  44. 44. The  Industrial  IoT  market  size  was  $181.3  billion  in  2013,  and  it  is  expected  to  reach  $319.6  billion  in  2020   at  a  CAGR  of  8.15%.            (MarketsandMarkets). IndustrialInternetofThings: ForecastofGlobalIoTMarket
  45. 45. Our  team  identified  3  current  areas  of  innovation  and  growth  in  the  industrial   IoT  space:  Artificial  Intelligence  /  Machine  Learning,  Security,  and  Sensor   Driven  Computing. • AI  &  Machine  Learning This  might  be  the  most  critical  aspect  of  industrial  IoT since  gathering  all   the  data  from  millions  or  billions  of  sensors  is  useless  without  insights  and   learning. • Security Most  of  the  IoT space  is  relatively  unsecured,  so  this  is  a  high  priority  for   private  and  public  sector  leaders.    From  Jeep  hacks  to  baby  monitors,   people  have  been  shown  how  unsecure  connected  devices  really  are. • Sensor  Driven  Computing While  very  early,  the  potential  of  sensor  driven  computing  is  enormous.   Think  Google  Now  for  manufacturer,  industrial  robots  and  smart  cities.    It   could  be  an  automated  world  beyond  our  current  imagination. IndustrialInternetofThings: GrowthSectors
  46. 46. Category Company Sector News Tech Giants Cisco Infrastructure Hosted  Internet  of  Things  World  Forum  that shows  250+  real-­world   deployment  examples  of  companies  and  municipalities  around  the   world  are  applying  the  Industrial  Internet  to  drive  efficiencies. GE Realized  more  than  $1  billion  in  incremental  revenues  in  2014  by   helping  customers  improve  asset  performance  and  business   operations  through  Industrial  Internet  capabilities  and  services Siemens Launched  a  new  $100  million  “Industry  of  the  Future  Fund”  to  fund   early-­stage  start-­ups  in  industrial  automation  and  other  digital   technologies  that  can  transform  future  manufacturing Huawei Telecommunication The  acquisition  of  Neul,  the  UK-­based  Industrial  Internet  startup,   that  was  one  of  the  key  supporters  of  the  weightless  standard  for   low-­power  M2M  Communications Startups RetailNext Retail Enables  retailers  and  manufacturers  to  collect,  analyze,  and   visualize  data  about  in-­store  customer  engagement. DeepMind (Acquired by  Google) Artificial Intelligence Models  eschew  pre-­scripted  forms  of  artificial  intelligence  and   instead  rely  on  experiential  learning  based  on  rudimentary   capabilities  using  deep learning Airware Aerospace/Drones The  aerial  information  platform  for  the  rapid  development  and  safe   operation  of  commercial  drones,  providing  hardware,  software  and   cloud  services Matterport 3D  printing Enables  create  a  realistic  3D  model  and  share  over  the  Internet   using sensor  technology. IndustrialInternetofThings: MajorPlayers
  47. 47. San  Francisco BioInspira is  building  safer  cities  by  providing  a  sensor-­‐ enabling  detection  grid  for  natural  gas leaks,  and   delivering  remote  and  real-­‐time  leak  monitoring  and  risk   prioritization  to  utilities  and any  parties  of  interest  for   safety,  security,  and  environmental  purposes. Singapore Hydroleap revolutionizes  the  wastewater  treatment   industry  by  replacing  chemical  treatment  with  electrical   treatment.  Their  Patent-­‐pending  technology  uses   common  metals  such  as  aluminium/iron  and  lowers  the   power  consumption  to  reduce  the  cost  of  treatment  by   10  times.  Team  has  PhDs  and  engineers  with  expertise  in-­‐ water  treatment,  electrochemistry,  membrane  and   electrical. EnvironmentalTechEnvironmentalTech SparkLabsDeepTechPortfolioHighlights: SmartCity& Environment
  48. 48. Gujarat,  India Oizom is  an  environmental  solutions  company.  Started   with  a  life-­‐centric  approach,  Oizom builds  data  driven   solutions  for  natural  resources:    air,  water,  soil,  and   energy.  Through  an  ecosystem  of  products  and  machine-­‐ learning  data-­‐science,  Oizom’s instruments  aims  to  make   the  environment  understandable  and  predictable.  Such   as  Polludrone,  which  an  advanced  ambient  air-­‐quality   monitor  for  cities. EnvironmentalMachineLearning SparkLabsDeepTechPortfolioHighlights: SmartCity& Environment Sydney Freestyle  has  built  a  CDP  (Connected  Device  Platform)   targeting  utilities,  but  will  expand  into  logistics,   agriculture,  healthcare  and  other  verticals  in  the  coming   years.  Their  primary  product  is  a  microengine for  remote   services  that  can  be  integrated  into  any  device  within  1-­‐2   months.  Devices  such  as  electricity  meters,  smart  plugs,   street  lights,  and  others.  The  company  has  31  patents   and  current  deployments  exceed  4,000  households  in   Taiwan,  Korea  and  China. Utilitiesmonitoring
  49. 49. Dublin  &  San  Francisco Drop  is  developing  a  full  Kitchen  operating  system   applying  technology  and  design  to  simplify  and   streamline  cooking,  making  it  easy  for  anyone  to  take   their  kitchen  skills  to  the  next  level.  Drop’s  focus  begins   with  baking.  There  are  over  30  million  bakers  in  the  U.S.   alone  and  for  many  of  them  finding  and  following  a   recipe  is  a  frustrating  process  that  often  leads  to   unpredictable  results. KitchenOS SparkLabsDeepTechPortfolioHighlights: SmartCity& SmartHome Singapore SensorFlow is  an  end  to  end  product  that  makes  buildings   energy  efficient.  Customers  pay  a  monthly  subscription.   The  company  has  a  proprietary  solution  that  is  easy  to   install  which  enables  hotels  and  other  buildings  to  save   20%  on  their  energy  bills. EnergyEfficiency
  50. 50. The impact of AI on the workplace is incredibly interesting, as I believe it will accelerate the shift of power from West to East. In Asia, China and Singapore recognize the huge impact that AI will bring, and both are spending billions on re-­educating their workforces, training millions in AI and machine learning in preparation for the future. This will result in more talented AI researchers and developers than the West, opening up many more possibilities for AI development and education in Asia. It is entirely possible that the next major breakthrough in AI comes outside Silicon Valley, just like DeepMind which was built in London, as Silicon Valley continues to underestimate the rapid development of AI research in the rest of the world. This is tremendously exciting for us at SparkLabs, with our extensive portfolio in “frontier tech” in Asia, curated from our SparkLabs accelerators and our partnerships with great company builders like Entrepreneur First in Singapore. Frank  Meehan Co-­founder  &  Partner  at  SparkLabs  Global  Ventures Prior  to  SparkLabs,  Frank  led  Horizons’  investment  in  DeepMind and  sat  on  the  board  of  Siri until  it  was  acquired  by  Apple.
  51. 51. Source:  Statista OverallAIInvestmentsbyCorporatesandStartups Source:  McKinsey  &  Company
  52. 52. Source:  Statista AdoptionofAIbyCorporates Source:  McKinsey  &  Company
  53. 53. Source:  Statista OverallAIInvestmentsbyCorporatesandStartups
  54. 54. “AI breakthroughs are moving out of the labs and into businesses big and small. The democratization of AI will progressively enable every company and industry to automate processes and optimize decisions, and every connected user to have a substantially more efficient interface paradigm through which to get things done.” Adam  Cheyer Co-­Founder  at  Siri  &   Co-­Founder  at  Viv
  55. 55. Source:  Statista AIInvestmentbySubsectors • Majority  of  AI  research  and  development  is   focused  on  general  machine  learning  for  multi-­ use  purposes.  This  was  estimated  to  be   between  $5  billion  and  $7 billion  in  2016. • Second  major  spending  of  external  AI   investment  is  computer  vision.    This  was   estimated  to  be  between  $2.5  billion  and  $3.5   billion  in  2016.
  56. 56. Source:  Statista AnnualFundingofAI
  57. 57. Source:  Statista AnnualFundingofAI
  58. 58. Source:  Statista AnnualFundingofAI
  59. 59. GlobalAIMarketProjectedtobeWorth$19.5Billionby2022 • Artificial  intelligence  market  is  expected  to   reach  $19.5  billion  by  2022,  growing  at  a   CAGR  of  45.4%  from  2016  to  2022.   • The  developments  of  more  human-­like   robots  and  increase  in  their  deployment   rate  in  the  developing  regions  have  had  a   substantial  effect  on  the  overall  artificial   intelligence  (AI)  market.   Source:  Statista (Allied  Market  Research)  
  60. 60. • As  of  4Q  2016,  there  are   1,464  AI  companies  in  13   categories  across  73   countries,  with  a  total   funding  of  $8.5  billion Source:  Venture  Scanner AIMarketPlayers
  61. 61. “A $100 billion market by 2020 has opened up for analytics alone in manufacturing and industrial IoT. This is a vibrant market for startups where incumbents are struggling to create sustainable value addition. Global Fortune 2000 companies are learning from Falkonry how to transform their operations using unexploited operational data as they pursue an expansive vision of higher quality, performance, throughput, and availability.” Nikunj Mehta Co-­founder  &  CEO,   Falkonry *SparkLabs  IoT  portfolio  company
  62. 62. Princeton,  NJ Arable  combines  data  from  weather,   environmental  drivers  of  crop  growth,  and crop   biological  status,  in  conjunction  with  its   predictive  analytics,  to  more accurately  predict   yields,  quality,  and  optimal  harvest  windows. Silicon  Valley Falkonry has  democratized  machine  learning  for   monitoring  by  providing  its  AI-­‐enabled solutions   to  its  customers.   The  Falkonry Service  provides   a  cognitive/AI  service  that  can automate  the   interpretation  of  telemetry  and  sensor  data   from  industrial  activity,  IT processes,  and  high-­‐ end  consumer  assets.   Boston Elemental  Machines  is  using  complex  biology   and  chemistry-­‐based  processes  with  insights   that  improve  research,  development,  and   manufacturing  outcomes.  By monitoring  and   measuring  invisible  environmental  variables  — instrument  performance  and ambient   temperature,  humidity,  air  pressure,  and  light   levels. Predictiveanalytics MachineLearning MachineLearning SparkLabsDeepTechPortfolioHighlights: AI& MachineLearning
  63. 63. Silicon  Valley  &  Seoul DreamSquare launched  an  AI-­‐driven  career   advisor  platform  called  Talent  X  to  help  students   find  their  right  career  path.   Within  the  platform,  students  can  identify   opportunities  that  fit  with  their  personal  traits   and  strength Seoul XBrain aims  to  create  software  that  enables   people  to  use  machine  learning  technology   without  requiring  in-­‐depth  knowledge.   Their  product  “Alice”  is  a  cloud-­‐based  machine   learning  assistant  that  helps  developers  and   data  scientists  to  build  and  deploy  machine   learning  models. ArtificialIntelligence MachineLearning SparkLabsDeepTechPortfolioHighlights: AI& MachineLearning Singapore Immerzen is  next  generation  immersive  3D   audio  technology  software  for  VR/AR,  to   replicate  natural  hearing  in  simulated  worlds.   An  immersive  3D  audio  technology  to   revolutionize  the  experiences  for  virtual  and   augmented  reality. ArtificialIntelligence
  64. 64. Singapore KroniKare’s solution  provides  front  and  back-­‐end  wound   assessment  software  that  uses  AI  to  mimic  medical   practices,  improving  accuracy,  consistency  and  efficiency.   It  mimics  humans  at  different  level  to  save  over  50%  of   nurse’s  times. SparkLabsDeepTechPortfolioHighlights: AI& MachineLearning Irvine,  CA Kadho is  a  brain  training  curriculum  specialized  company   which  combines  brain  science  with  advanced  AI  and   machine  learning  to  accelerate  the  acquisition  of   expertise  of  new  languages. MachineLearningArtificialIntelligence
  65. 65. SparkLabsDeepTechPortfolioHighlights: AI& Computer Vision Seoul Augmented  Knowledge  is  an  augmented  reality  (AR)   solutions  company  currently  focused  on  the  airline  and   machinery  maintenance  industries.  The  company’s   flagship  product  revolutionizes  aircraft  maintenance   through  the  use  of  image  recognition  technology  and   real-­‐time  AR  visualization  of  mechanical  parts  and  the   work  environment. ComputerVision&AR Singapore Powered  by  deep  learning,  sensor  fusion,  and   probabilistic  planning,  Movel AI  is  a  software  platform   enabling  robots  to  see  and  act  same  as  humans  do. Team  has  deep  expertise  in  robotics,  computer  vision,   motion  planning,  and  deep  learning. ComputerVision&Robotics
  66. 66. Source:  Venture  Scanner AICategories • Cybersecurity  related  AI  investments   reached  over  $780  million  in  2016  and   is  continuing  at  this  strong  pace  with  a   projected  $806  million  for  2017. • Fraud  detection,  one  of  the  sectors   within  cybersecurity,  is  a  common   application  of  AI  and  machine  learning.
  67. 67. Source:  Venture  Scanner AICategories • In  the  cybersecurity  space  during   2015,  there  were  112  M&A  deals  with   almost  $10  billion  in  disclosed  value.   In  2016,  there  were  approximately   $10.6  billion  in  disclosed  value  for   M&A  deals.    (Hampleton)
  68. 68. Tel  Aviv Providing  governments,  government  entities  and  utilities   with  cutting-­‐edge  cyber  security  capabilities  and   strategies  to  be  effective  today  and  evolve  for  sustainable   advantage  in  the  future. Founded  by  the  team  behind  the   creation  of  Israel’s  cyber  protection  agency San  Francisco  &  Malmo,  Sweden deploys  a  security  platform  that  plugs  in  to  any   environment  at  any  level for  developers  to  incorporate   advanced  security  and  authentication  solutions  in  their   products.   Without  the  need  for  predefined  rules,  professional   training,  and  expensive  support  deals. GovtLevelCyberSecurity CloudSecurityFramework SparkLabsDeepTechPortfolioHighlights: AI& CyberSecurity
  69. 69. Tel  Aviv SAM  tackles  cyber  security  threats  at  the  source  by   securing  the  network  gateway.  Protecting  communication   between  IoT  devices  at  this  access  point  ensures  a  safe   and  secure  connected  home. With  a  software-­‐only  solution,  SAM  uses  the  network   gateway  to  protect  all  connected  devices  in  the  home. WirelessNetworkSecurity SparkLabsDeepTechPortfolioHighlights: AI& CyberSecurity Singapore MicroSec is  building  enterprise  grade  security  solutions   for  IoT and  sensor  networks.   Team  consists  of  PhDs  and  researchers  with  expertise  in   cryptography,  discrete  mathematics,  IoT  and  sensor   networks IOTNetworkSecurity
  70. 70. “Today's  technology  gives  us  a  great  insight  and   understanding  into  peoples  current  well-­being.  By   acting  on  these  insights  we have the   opportunity  to  prevent  and  improve  the  future   of  health  in  a  proactive  way. By  using  data  and   machine  learning  we  can  give  individuals  personal   guidance  on  how  to  improve  their  lives  by  making  the   small  behavioural changes  that  yield  the  largest   impact  on  their  own  health.”Henrik  Torstensson CEO  of  Lifesum *SparkLabs  Global  portfolio  company
  71. 71. SparkLabsDeepTechPortfolioHighlights: HealthTechnology • Investments  into  digital   health  exploded  this  year   and  is  expected  to  hit  over   $10  billion  in  total.
  72. 72. SparkLabsDeepTechPortfolioHighlights: HealthTechnology • Mental  health  &  wellness  is   growing  into  a  significant   category  within  the  health  sector. • Over  $200  million  in  venture   capital  was  raised  in  2016  and  it   is  expected  hit  over  $230  million   in  2017.
  73. 73. SparkLabsDeepTechPortfolioHighlights: HealthTechnology
  74. 74. SparkLabsDeepTechPortfolioHighlights: HealthTechnology • The  genomics  market  has   exploded  in  2017  with  big   investments  into  23andMe (supposedly  $200  milliion Series  F   by  Sequoia  and  others),  Color   Genomics  ($80  million  Series  C   from  General  Catalyst,  CRV,  and   Emerson  Collective's  Laurene Powell  Jobs),  and  others.
  75. 75. SparkLabsDeepTechPortfolioHighlights: HealthTechnology • The  U.S.  still  dominates  the  global   genomics  market  with  having  68%   of  total  deals  done  since  2013. • The  total  market  is  expected  to  hit   $20  billion  by  2020,  which  is  up   from  $12.5  billion  in  2015.
  76. 76. Stockholm Lifesum gives  people  personalized  navigation  for  health   and  lifestyle  improvement.  By  tapping  in  to  mobile  sensor   technology  and  combining  it  with  passion  for  design  and   applied  psychology  ,  we  try  to  create  delightful  user   experience  that  improves  health  for  the  mainstream. Sensors/Psychometric SparkLabsDeepTechPortfolioHighlights: HealthTechnology Seoul Skylabs developed  an  always-­‐on  arrhythmia  monitoring   smart  ring  that  works  without  any  user  intervention.     CART  is  the  product  name  of  their  smart  ring  cardio   tracker that  focuses  on  atrial  fibrillation,  which  is  a  very   common  chronic  disease. IoTWearable
  77. 77. Seoul  &  Tokyo Genoplan’s genetic-­‐code-­‐based  solution  analyzes   people’s  unique  genetic  characteristics  and  provides   personalized  weight  management  solutions  according  to   the  test  results. Seoul Wayskin’s biometric  and  environmental  sensors  can  make   personalized  skincare  recommendations.  WAY  helps   people  make  smarter  skincare  decisions  that  last  a   lifetime. Genomics Biometrics SparkLabsDeepTechPortfolioHighlights: HealthTechnology
  79. 79. SparkLabsDeepTechPortfolioHighlights: Space Technology • After  hitting  a  peak  of  $2.2  billion   in  estimated  funding  the  space   tech,  the  market  has  cooled  down   the  past  couple  years. • After  the  frenzy,  we  believe   stronger  ideas  and  teams  are   being  financed  versus  multiple   “me-­too”  players.
  80. 80. SparkLabsDeepTechPortfolioHighlights: Space Technology “$1.8  billion  in  commercial  space   startups  in  2015,  nearly  doubling  the   amount  of  venture  cash  invested  in  the   industry  in  all  of  the  previous  15  years   combined.”     -­ Fortune  Magazine
  81. 81. SparkLabsDeepTechPortfolioHighlights: Space Technology
  82. 82. SparkLabsDeepTechPortfolioHighlights: Space Technology
  83. 83. “The  promise  of  having  cost-­effective  Internet  anywhere   has  been  long  touted,  but  it  cannot  be  done  because  of  our   current  outdated  technology  which  has  a  very  high  cost-­ per-­bit!  We  need  wireless  laser  communications  to   deliver  economical,  extremely  low  cost-­per-­bit   backhaul  for  Internet  anywhere.  A  full  space  laser   network  in  low  Earth  orbit  can  then  act  as  a  data  backbone   for  connecting  any  two  points  on  the  planet! Our  long  term  goals  involve  extending  the  link  from  near   Earth  to  deep  space  -­ providing  extremely  high  bandwidth   connections  to  upcoming  lunar  bases,  asteroid  mining   rovers  and  Mars  colonising efforts.” Rohit Jha Co-­founder  &  CEO  of   Transcelestial *SparkLabs  Global  portfolio  company
  84. 84. Singapore Transcelestial Technologies  is  building  a  super  fast,  space  laser   network  which  can  provide  up  to  1000x  speeds  than  current   satellite  communication  technology.   Current  wireless  technology  is  unable  to  support  the  growth  of   our  population  into  the  21st century.  By  2027,  it  is  estimated   there  will  be  50  billion  connected  devices  and  people   exchanging  data. Transcelestial SparkLabsDeepTechPortfolioHighlights: Space Technology
  85. 85. SparkLabsGlobalVenturesPartnership EFSingapore’sOnly Co-investmentPartner&Follow-onFund SparkLabs  Global  Ventures  was  the  selected  co-­investment  partner  for  pre-­demo  day  funding  of  the  best  in  the  class  for   Entrepreneur  First  Singapore. Entrepreneur  First,  the  London-­based  startup  accelerator  focused  on  deep  tech,  launched  its  Singapore  program  in   September  2016.  It  is  EF’s  first  expansion  abroad  and  is  backed  by  Infocomm Investments,  a  venture  capital  unit  funded   by  the  Singapore  government  who  hopes  the  new  program  will  fuel  the  startup  ecosystem  in  Singapore.     EF  Singapore  will  recruit  400  technical  individuals  and  help  to  find  startups  over  the  next  4  years.  Entrepreneur  First   provides  deeply  technical  people  with  £17,000  in  pre-­seed  funding  so  they  can  build  a  technology  startup  over  a  six   month  period.  In  return,  it  takes  an  8%  equity  stake.
  86. 86. SparkLabsAccelerator Partnership SongdoCity’sExclusivePartner 6-­month  long  Internet  of  Things  program  for  seed  to  early-­stage  entrepreneurs  from  anywhere  across  the  globe.  While  the   program  is  based  in  Songdo,  South  Korea,  global  companies  are  not  required  to  be  located  there. • $35 billion smart city built from ground up. • 2nd largest private real estate development in history. • 80,000 apartment units • Currently over 36,000 residents • 50 million square feet of office space and 10 million square feet of retail space • SparkLabs is the exclusive IoT test bed partner SONGDO: Smart City of the Future
  87. 87. Thank you!