A report providing an overview of the Artificial Intelligence (AI) technology startup landscape. Includes a sector overview, graphical trends with insights, and recent funding/exit events. Contact info@venturescanner.com or visit www.venturescanner.com to learn more!

1. Q3 Startup Market Trends and Insights
ARTIFICIAL INTELLIGENCE
July 2017

2. Artificial Intelligence (AI) report outline
2
This report provides an overview of the AI technology sector and is broken down
into three sections
SectorDescription
High-level sector metrics,
innovation quadrant, and
category definitions
Trends& Insights
Infographics and data points
for the artificial intelligence
technology sector
QuarterlyActivity
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. Sector Description
3

4. 4
AI technology startups are creating new businesses in 13 categories
The full Venture Scanner market report
and database tracks 1,878 companies
with $18B in funding
ARTIFICIAL
INTELLIGENCE
The graphic above shows only a sampling of companies in each category, data as of July 2017
ComputerVisionPlatform ComputerVisionApp SmartRobots GestureControl SpeechRecognition
MachineLearningApplications
VirtualAssistants RecommendationEngines VideoRecognition ContextAwareComputing SpeechtoSpeechTrans.
MachineLearningPlatforms
NaturalLanguageProcessing

5. 5
Innovation quadrant for AI
This quadrant shows a relative segmentationof the categories with respect to oneanother, data as of July 2017
AverageFunding
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
Machine Learning
Platforms
AverageAge
Machine Learning
Applications
Smart RobotsComputer Vision
Platforms
Recommendation
Engines
Speech to Speech
Translation
Speech
Recognition
Natural Language
Processing
Gesture
Control
Video
Recognition
Context Aware
Computing
Computer Vision
Applications
Virtual
Assistants

6. AI startups play in many different categories (1 of 2)
6Category stats as of July 2017
Computer Vision/ImageRecognition Applications
214 Startups, $1.1B 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
ContextAwareComputing
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
Computer Vision/ImageRecognition Platforms
191 Startups, $2B Total Funding
Companies that build technology that process and
analyze images to deriveinformation and recognize
objects from them
Deep Learning/MachineLearningPlatforms
256 Startups, $2.9B Total Funding
Companies that build computer algorithms to optimize
results based on existing data, such as for predictive data
models
NaturalLanguageProcessing
304 Startups, $2.2B Total Funding
Companies that build algorithms that process human
language input and convert it into understandable
representations, such as mining text into data
Deep Learning/MachineLearningApplications
570 Startups, $8.3B Total Funding
Companies that use machine learning algorithms on
existing data in vertically specific use cases, such as
detecting banking fraud
GestureControl
60 Startups, $694M Total Funding
Companies that enable one to interact with devices
through gestures, such as controlling video game avatars
through body motion
PersonalizedRecommendationEngines
102 Startups, $1.5B 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)
7Category stats as of July 2017
SmartRobots
168 Startups, $2.8B 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
Speechto SpeechTranslation
21 Startups, $45M Total Funding
Companies that recognize and translate human speech in
one language into another language automatically and in
near-real time
VirtualAssistants
186 Startups, $1.3B Total Funding
Software agents that perform everyday tasks and services
for an individual based on commands, such as customer
service chatbots on websites
SpeechRecognition
163 Startups, $1.1B 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
VideoAutomaticContentRecognition
24 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. Sector Trends & Insights
8

9. 9
Investing into the sector is occurring across a variety of categories
The Machine Learning Applications category accounts for 34% of venturefunding
and 25% of totalcompanies in the AI sector
Venture Investing in AI
Companiesare categorized by function, and therefore can exist in multiple categories. Data through July 2017
-
100
200
300
400
500
600
0
1
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3
4
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9
CompanyCount
TotalFunding($B)
VC Funding Count

10. 10
VC funding into AI has accelerated in recent years
Overall AIVC fundinggrew ata CAGR of 49% from 2011-2016, and 2017 is
currently at 172% of 2016 funding
AI Funding Over Time
Data through July 2017
0
1
2
3
4
5
6
7
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TotalFunding($B)

11. 11
AI funding amounts are mostly early-stage events
AI Funding Amount By Round
63% of 2016 AI VC funding went into SeriesA andSeriesB events
Graphs shows only the funding rounds listed therein, data through July 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
AI startups founded in 2012 lead in VC funding
Startups founded in 2012 account for 26% of the sectorfunding over the last decade, and
include companies like Tautiao,Improbable, and Mobvoi
AI Funding By Vintage Year
Data through July 2017
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TotalFunding($B)
Year Founded

13. 13
AI startups are a global phenomenon
AI Startup Count by Country
Data through July 2017
10000
Companies

14. 14
A variety of traditional and corporate investors are making bets into AI
Selected Investor Activity in AI
The above count represents a subset of overall investor activity, data through July 2017
0
5
10
15
20
25
30
35
40
NumberofInvestments
Number of Investments Number of Companies Backed

15. 15
Exits within the AI space have grown in the past few years
Exit events within the AI sector grew by 117% from 2013 to 2016, and 2017 is
currently at 108% of the 2016 total
AI M&A and IPO Events By Year
Data through July 2017
0
5
10
15
20
25
30
35
40
45
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
NumberofExits
Public Acquired

16. Quarterly Notable Events
16

17. 17
Recent AI funding statistics
There have been 115 AI funding events from April 2017 through June 2017
Recent AI Funding Round Counts
Graph shows only the funding types listed therein, data as of July 2017
0
5
10
15
20
25
30
35
40
Seed Series A Series B Series C Series D Series E Late Stage
FundingEventCount

18. 18
Recent AI funding events
Notable Recent AI Funding Events
Company FundingType Amount Date
Series D $1,000,000,000 April 7, 2017
Series B $502,000,000 May 11, 2017
Private Equity $231,000,000 May 10, 2017
Series D $180,000,000 April 6, 2017
Series A $102,000,000 June 14, 2017
AI startups raised $3.5 billionfrom April 2017 through June 2017
Data as of July 2017

19. 19
Recent AI exit events
Notable Recent AI Exit Events
Company Acquirer Amount Date
$200,000,000 May 14, 2017
Unknown Jun 26, 2017
Unknown Jun 16, 2017
Unknown Jun 9, 2017
Unknown Jun 8, 2017
There have been 16 AI exits from from April 2017 through
June 2017, including 13 acquisitions and 3 IPOs
Data as of July 2017

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