1.
PANEL ARTIFICIAL INTELLIGENCE
June 2016

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2Private and Confidential
ABOUT CREATHOR VENTURE
introduction
200+ investments
50+ exits
20+ IPOs

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3Private and Confidential
ABOUT CREATHOR VENTURE
introduction

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4Private and Confidential
INSIGHTS INVESTMENT VERTICAL
PANEL DISCUSSION
Q/A
10
40
10
PANEL AGENDA
introduction

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5Private and Confidential
TECHNOLOGY WE USE DAILY MADE POSSIBLE BY AI BREAKTHROUGHS
trends

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6Private and Confidential
IT IS REALLY HARD TO MAKE COMPUTERS UNDERSTAND LANGUAGE!
trends
Paris Hilton
was in Paris
at the Paris Hilton
listening to Paris

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7Private and Confidential
data explosion infrastructure research
90% data / 2 years
0.5% used
28,450x
cheaper storage ($/gigabyte)
10,540x
cheaper compute ($/M transistors)
special CPUs/GPUs
just for machine learning
deep learning / neural networks
transfer learning
re-inforcement learning
unsupervised learning
ensemble learning
LSTM
3 MEGA TRENDS DRIVE A.I
trends

8.
8Private and Confidential
SUMMARY - WHAT IS DIFFERENT THIS TIME IN AI TO JUSTIFY INVESTING NOW?
mega trends & technologies
Since 1950s there were 3 AI Winters
or boom and bust cycles
more affordable
computing power
more accessible
data
research break throughs
(unsupervised deep learning…)
investments
government, start-ups,
universities, tec companies
2
1
3
4

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9Private and Confidential
INSIGHT 1 - IMPORTANT MACHINE LEARNING ADVANCEMENT FROM SWITZERLAND
(LUGANO)
trends
LSTM

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10Private and Confidential
INSIGHT 2 - 2012 BREAK THROUGH: DEEP UNSUPERVISED LEARNING OF YOUTUBE CATS
trends
16.000
10 million
1 week

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11Private and Confidential
INSIGHT 3 - DEEP LEARNING AND RE-INFORCEMENT LEARNING MIMICS EVOLUTION OF
BRAIN
trends

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12Private and Confidential
INSIGHT 4 - CHIP / HARDWARE CORPORATES ARE VERY ACTIVE INVESTORS
investment vertical

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13Private and Confidential
INSIGHT 5 - MACHINE / DEEP LEARNING START-UPS EXIT WAVE STARTED 2014
investment vertical

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14Private and Confidential
INSIGHT 6 - TALENT ACQUISITIONS LIKE DEEP MIND WILL OCCUR LESS IN THE
FUTURE
investment vertical

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15Private and Confidential
INSIGHT 7 - MOVING TOWARDS MORE IMMEDIATE BUSINESS VALUE CREATION
investment vertical
shadow-detection
algorithms predict oil
tank volumes for hedge
funds
deep learning imagines computer game
textures or invents new pixels to transform low
resolution pictures to high quality
deep learning auto-corrects and
predicts what you are going to write

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16Private and Confidential
INSIGHT 7 - MOVING TOWARDS MORE IMMEDIATE BUSINESS VALUE CREATION
investment vertical
new / better data
learning
efficiency
insight
generation
+
immediate business value

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17Private and Confidential
INSIGHT 8 - BOTS WILL / SHOULD HELP SIMPLIFY TIME-CONSUMING KNOWLEDGE WORK
deal landscape

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18Private and Confidential
INSIGHT 8 - BOTS WILL / SHOULD HELP SIMPLIFY TIME-CONSUMING KNOWLEDGE WORK
deal landscape

19.
19Private and Confidential
HARALD NIEDER Red Alpine (VC)
JÜRGEN GALLER 1plusX, Swisscom, Google
MANISH SINGHAL PI Ventures (VC)
RASMUS ROTHE Merantix
PANEL PARTICIPANTS
panel

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20Private and Confidential
EXAMPLE - ETH ZURICH PROJECT PREDICTS ATTRACTIVENESS FOR DATING
investment vertical
howhot.io

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21Private and Confidential
BACKUP

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22Private and Confidential
VENTURE CAPITAL IS LIKE KITESURFING
OVERCONFIDENCE
DEPENDANCE
CONDITIONS CHANGE
CRASHING
BOARD CONTROL
this is actually me

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23Private and Confidential
MACHINE INTELLIGENCE STARTUP LANDSCAPE IS VAST...
investment vertical

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24Private and Confidential
EXAMPLE: MAGIC PONY (UK) SOLD TO TWITTER FOR 150 MILLION
investment vertical
[...] will be used to enhance
our strength in live and video
and opens up a whole lot of
exciting creative possibilities
for Twitter. [...]

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25Private and Confidential
A.I. IS AN ATTRACTIVE INVESTMENT VERTICAL
investment vertical
ROI multiple 6.8x - 30x+
median time exit 3 years
median # FTE at exit 7.5
attractive kpis with short time to exit * network effects driving exit value
buy academic talent
buy Startups
data | models | talents
own data | models
1 2
* m&a analysis by Playfair Capital

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26Private and Confidential
EXAMPLE: TEXTIO CORRECTS YOUR JOB POSTINGS IN REAL-TIME
investment vertical