Q4 Startup Highlights

ARTIFICIAL INTELLIGENCE

January 2018

Quarterly artificial intelligence (AI) highlights

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This brief overview of the artificial intelligence sector provides three sections

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Sector Summary

Macro-level views on the state of the artificial

intelligence sector

Latest Activity

Major funding and exit events from the previous

quarter

Category Discovery

Deep dive into a single artificial intelligence

category

Sector Summary

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ARTIFICIAL INTELLIGENCE

13 Categories

2,029 Companies

$27B Funding

Sector stats are continuously changing, data cumulative as of December 2017

ARTIFICIAL INTELLIGENCE

Computer Vision Platforms(199 Companies)

Computer Vision Apps(233 Companies)

Smart Robots(178 Companies)

Gesture Control(61 Companies)

Speech Recognition(169 Companies)

Virtual Assistants(210 Companies)

Recommendation Engines(105 Companies)

Video Recognition(21 Companies)

Context Aware Computing(33 Companies)

Speech to Speech Trans(21 Companies)

Machine Learning Applications(669 Companies)

Machine Learning Platforms(269 Companies)

Natural Language Processing(314 Companies)

The Venture Scanner research platform currently tracks 2,029 artificial

intelligence startups with $27B in funding

The graphic above shows a random sampling of companies in each category, data cumulative as of December 2017

Smart Robots

ML Platforms

Gesture Control

Video RecognitionCV Platforms

ML ApplicationsVirtual Assistants

Speech Recognition

NLP

CV Applications Recommendation Engines

Context Computing

Speech to SpeechTranslation

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Innovation quadrant for artificial intelligence

Average Funding

ESTABLISHED HEAVYWEIGHTS

PIONEERS DISRUPTORS

Ave

rage

Age

This quadrant shows a relative segmentation of the categories with respect to one another, data cumulative as of December 2017Visit www.venturescanner.com to learn more about our artificial intelligence research platform

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VC funding into artificial intelligence grew significantly in 2017

Overall artificial intelligence funding grew at a CAGR of 85% from 2012-2017, and 2017 was 340% of 2016 funding

Artificial Intelligence Annual Funding Over Time

Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our artificial intelligence research platform

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All quarters’ funding grew significantly year over year

The funding in Q4 2017 was 236% of the funding in Q4 2016, and the funding in Q3 2017 was 449% of the funding in Q3 2016

Artificial Intelligence Quarterly Funding Over Time

Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our artificial intelligence research platform

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Exits within the space are on a general upward trend

Overall artificial intelligence exits grew at a CAGR of 38% from 2012-2017, and the exits in 2017 were 175% of the exits in 2016

Artificial Intelligence Exit Events Over Time

Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our artificial intelligence research platform

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Latest Activity

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Artificial intelligence funding events were mostly early stage in Q4 2017

There were 117 funding events this quarter, 62% of which were Seed and Series A

Recent Artificial Intelligence Funding Round Counts

Graphs shows only the funding rounds listed thereinVisit www.venturescanner.com to learn more about our artificial intelligence research platform

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Smart robots companies received the most funding in Q4 2017

Artificial intelligence startups raised $3.3 billion over the last quarter, with smart robots companies raising the most funding at $883 million

Quarterly Artificial Intelligence Category Funding

Companies are categorized by function, and therefore can exist in multiple categories.Visit www.venturescanner.com to learn more about our artificial intelligence research platform

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Recent artificial intelligence funding events

Notable Recent Artificial Intelligence Funding Events

Company Funding Type Amount Date

Series C $460,000,000 Nov 1, 2017

Series C $400,000,000 Nov 15, 2017

Series C $227,000,000 Nov 29, 2017

Private Equity $117,000,000 Nov 7, 2017

Series C $100,000,000 Oct 20, 2017

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The top 5 artificial intelligence funding events accounted for 40% of quarterly funding

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Recent artificial intelligence exit events

Notable Recent Artificial Intelligence Exit Events

Company Acquirer Amount Date

$81,252,495 Nov 3, 2017

Unknown Dec 20, 2017

Unknown Nov 28, 2017

Unknown Oct 23, 2017

Unknown Oct 19, 2017

There were 10 artificial intelligence exits this past quarter, all of which have been acquisitions

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Category Discovery – Deep Learning/Machine Learning Applications

Every quarter a new category will receive a deep dive, providing comparisons to other categories and discussing trends

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Machine learning applications is the leading category within artificial intelligence

The machine learning applications category accounts for 35% of funding in the sector and saw 7% growth last quarter

Venture Investing in Artificial Intelligence

Companies are categorized by function, and therefore can exist in multiple categories. Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our artificial intelligence research platform

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Previous Total Quarterly Funding Percent Growth

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Companies within machine learning applications are generally better funded than their peers

Machine learning applications have a median funding $3M higher than the average of other categories, and a third quartile that is $6M higher

Artificial Intelligence Category Funding Quartiles

Companies are categorized by function, and therefore can exist in multiple categories. Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our artificial intelligence research platform

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Machine learning applications funding grew in 2017, while funding events stayed relatively flat

Overall machine learning applications funding grew at a CAGR of 79% from 2012-2017, and 2017 funding was 407% of 2016 funding

Machine Learning Applications Quarterly Funding

Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our artificial intelligence research platform

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Funding Events

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Machine learning applications funding amounts have shifted to Series B

Machine Learning Applications Funding Amount By Round

In Q4 2017, Series B was the biggest funding round and accounted for 34% of total VC funding

Graphs shows only the funding rounds listed therein. Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our artificial intelligence research platform

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Funding within machine learning applications is moderately concentrated

Machine Learning Applications Companies with Large Funding Amounts

Company Latest Round Amount Location

Private Equity $3,100,000,000 China

Undisclosed $1,000,000,000 Pittsburgh, USA

Series D $359,000,000 Cambridge, USA

Undisclosed $267,250,000 Los Angeles, USA

Series E $251,200,024 Provo, USA

The top 5 machine learning applications companies by total funding account for 38% of overall category funding

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