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1
World’s Largest Start-up Research Platform
In Collaboration With
India’s Only AI focussed Venture Fund
Artificial Intelli...
Artificial Intelligence Evolution
2
No. of transistors per sq.
inch
Opportunity in AI
3
Artificial Intelligence is an umbrella term used for intelligent automation of mechanized as well as c...
AI - Investment Landscape
4
June 2016Tracxn BlueBox : Artificial Intelligence
Cumulative funding in the sector
1000+ compa...
AI - Investment Landscape
5
June 2016Tracxn BlueBox : Artificial Intelligence
Cumulative funding in the sector
1000+ compa...
AI - Investments Trends
6
YoY Funding Rounds vs. Total Funding
No.offundingrounds0
55
110
165
220
TotalFunding(In$Mn)
0
75...
Investment Trend in Applied AI : Sectors
7
No.offundingtransactions
0
18
35
53
70
TotalFunding(In$Millions)
0
6
11
17
22
F...
Trend in Applied AI : Early Stage Dominates
8
74% deals are Early
Stage or Series A,
making it right time to
enter AI
Deal...
Enterprise
Cylance
Ayasdi
Vectra
Networks
Natero
msg.ai
Gradberry
EverString
Lattice
Mintigo
Vectra
Networks
RelateIQ
Bloo...
AI Global Exits : M&A and IPO Trends
10
• Out of 1400+ companies tracked, 132 companies have been acquired
• Acquisitions ...
11
Company Name Year Business Model Acquired By
Moodstocks 06-Jul-16 Infrastructure - Visual Recognition Google
Meekan 04-...
Exit Trend in Applied AI
Within 4 years & under $20M in Investment
12
Most exits are through
M&A because of
Corporates
Mos...
Early Days in India : Examples
13
Early Exits Investments
Acquired by PayTM ($8mn), Shifu mines
the smartphone usage patte...
Next Unicorns will be driven by Applied AI
14
Core AI Building
Blocks
Heavy R&D Spend to solve
core problems, ex. NLP,
Ima...
Summary
15
Most of the deals are early stage or at Series A. Globally, because of
disruptive nature of AI startups are see...
References
16
https://www.cbinsights.com/blog/artificial-intelligence-mergers-
acquisitions-exits/
http://insights.ventures...
Thank You!
17
&
World’s Largest Start-up Research Platform
www.tracxn.comwww.piventures.in
India’s Only AI focussed Ventur...
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Pi ai landscape

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Artificial Intelligence Landscape - Global and India

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Pi ai landscape

  1. 1. 1 World’s Largest Start-up Research Platform In Collaboration With India’s Only AI focussed Venture Fund Artificial Intelligence Investment Landscape Global and India Perspective Aug 2016
  2. 2. Artificial Intelligence Evolution 2 No. of transistors per sq. inch
  3. 3. Opportunity in AI 3 Artificial Intelligence is an umbrella term used for intelligent automation of mechanized as well as certain previously human only tasks. Recent developments in algorithms, computational power, access to cheaper hardware and enabling software, and the treasure trove of digital data have allowed AI to make significant progress in terms of the tasks that were previously difficult to accomplish (such as Speech Recognition, Computer Vision etc.). These technologies have enabled a new wave of enterprise software as well as industry specific solutions. Some of the key areas for AI enabled Software are Business Intelligence, Marketing & Sales, Cyber Security. Some of the Industry verticals where AI has made significant inroads are Healthcare, Automotive and Financial Services Notable investments in 2016 - Global • PatternX (Enterprise – Security & Surveillance) - $8M, Series A from Khosla Ventures – Jul 26, 2016. • Takt (Enterprise – Customer Service) - $30M, Series A from BCG Digital Ventures and Starbucks – Jul 25, 2016. • Sift Science (Industry – Financial Services) - $30M, Series C from Insight Venture Partners, Spark Capital, and Union Square Ventures – Jul 19, 2016. Notable investments in 2016 - India • Netradyne (Industry – Automotive) - $16M, Series B from RIL– Jun 1, 2016. • Niki.ai (Consumer – Virtual Assistants) - Undisclosed, Angel from Unilazer Ventures– May 19, 2016. • Locus.sh(Industry - Logistics) - $2.7M, Series A from Blume Ventures, BeeNext, Exfinity Ventures– May 09, 2016. • Active.ai (Industry – Financial Services) - $500k, Seed from Kstart– May 04, 2016. • Auro Robotics (Industry – Transport – Autonomous Vehicles) - $2M, Series A from Rothenberg Ventures, Motus Ventures– Apr 27, 2016.
  4. 4. AI - Investment Landscape 4 June 2016Tracxn BlueBox : Artificial Intelligence Cumulative funding in the sector 1000+ companies tracked, ~$8.0B invested in last 5 years, ~$3.5B invested in 2015/16 Most Active Investors: SV Angel, NEA, Khosla Ventures, Y Combinator, Bloomberg Beta INFRASTRUCTURE ENABLING TECHNOLOGIES Nvidia (1993, IPO) VISUAL RECOGNITION Face++ (2011, $47M) $1.5B MACHINE INTELLIGENCE SYSTEMS DEEP LEARNING Sentient (2007, $144M) MACHINE LEARNING Data Robot(2012,$57M) COGNITIVE SYSTEMS IBM (1911, IPO) NATURAL LANGUAGE PROCESSING SPEECH RECOGNITION Nuance (1992, IPO) TEXT & SPEECH ANALYTICS SpinVox (2003, Acq.) $458M $370M $192M $440M APPLIEDAI ENTERPRISE BI & ANALYTICS INDUSTRY ADVERTISING RocketFuel (2008, IPO) PHARMA & HEALTHCARE Butterfly Network (2011, $100M) FINANCE Zest Finance(2009, $112M) $5.6B SECURITY & SURVEILLANCE Cybereason (2012, $89M) TRANSPORT Mobileeye (1999, IPO) AGRICULTURE The Climate Corp(2006, Acq.) SALES InsideSales (2004, $199M) MARKETING Attensity (2000, $105M) CUSTOMER SERVICE ClaraBridge (2006, $103M) HUMAN RESOURCES Bright Media(2011, $20M) BUSINESS INTELLIGENCE Palantir(2004,$2.01B) ALTERNATE DATA INTELLIGENCE Premise Data(2012,$66.5M) SOCIAL MEDIA INTELLIGENCE Dataminr(2009,$180M) EDUCATION Knewton (2008, $157M) LEGAL Lex Machina(2009, Acq.) $2.5B APPLIEDAI CONSUMER VIRTUAL ASSISTANTS INTELLIGENT ROBOTS Anki(2010, $105M) PRODUCTIVITY X.ai(2014,$34.3M) HEALTH & MEDICAL Your.md(2013,$7.3M) GENERAL PURPOSE Siri(2007,Acq.) $448M $8.5B RECOMMENDER Luka.ai(2014, $4.5M) Practice Area – Technology Global | Analyst: Vijaya Bhaskara Rao
  5. 5. AI - Investment Landscape 5 June 2016Tracxn BlueBox : Artificial Intelligence Cumulative funding in the sector 1000+ companies tracked, $8.0B invested in last 5 years, ~$3.5B invested in 2015/16 Most Active Investors: SV Angel, NEA, Khosla Ventures, Y Combinator, Bloomberg Beta INFRASTRUCTURE ENABLING TECHNOLOGIES Nvidia (1993, IPO) VISUAL RECOGNITION Face++ (2011, $47M) $1.5B MACHINE INTELLIGENCE SYSTEMS DEEP LEARNING Sentient (2007, $144M) MACHINE LEARNING Data Robot(2012,$57M) COGNITIVE SYSTEMS IBM (1911, IPO) NATURAL LANGUAGE PROCESSING SPEECH RECOGNITION Nuance (1992, IPO) TEXT & SPEECH ANALYTICS SpinVox (2003, Acq.) $458M $370M $192M $440M APPLIEDAI ENTERPRISE BI & ANALYTICS INDUSTRY ADVERTISING RocketFuel (2008, IPO) PHARMA & HEALTHCARE Butterfly Network (2011, $100M) FINANCE Zest Finance(2009, $112M) $5.6B SECURITY & SURVEILLANCE Cybereason (2012, $89M) TRANSPORT Mobileeye (1999, IPO) AGRICULTURE The Climate Corp(2006, Acq.) SALES InsideSales (2004, $199M) MARKETING Attensity (2000, $105M) CUSTOMER SERVICE ClaraBridge (2006, $103M) HUMAN RESOURCES Bright Media(2011, $20M) BUSINESS INTELLIGENCE Palantir(2004,$2.01B) ALTERNATE DATA INTELLIGENCE Premise Data(2012,$66.5M) SOCIAL MEDIA INTELLIGENCE Dataminr(2009,$180M) EDUCATION Knewton (2008, $157M) LEGAL Lex Machina(2009, Acq.) $2.5B APPLIEDAI CONSUMER VIRTUAL ASSISTANTS INTELLIGENT ROBOTS Anki(2010, $105M) PRODUCTIVITY X.ai(2014,$34.3M) HEALTH & MEDICAL Your.md(2013,$7.3M) GENERAL PURPOSE Siri(2007,Acq.) $448M $8.5B RECOMMENDER Luka.ai(2014, $4.5M) Practice Area – Technology Global | Analyst: Vijaya Bhaskara Rao AI Infra - $1.5B Investment Since 2010, only in 2015- $360 mn Major Areas of investments are in Hardware Processing and Intelligent Algorithms Applied AI - $8.5B Investments in Applied AI, $2.3bn - only in 2015. Major Areas of Investment - Enterprise (Cyber Security, Business Intelligence), Financial (Credit Scoring, Analytics) Healthcare (Diagnostics, Virtual Assistants) and Transport (Autonomous Vehicles) AI Infra 15% Applied AI 85% Majority of investments are in Applied AI
  6. 6. AI - Investments Trends 6 YoY Funding Rounds vs. Total Funding No.offundingrounds0 55 110 165 220 TotalFunding(In$Mn) 0 750 1500 2250 3000 Funding Year 2011 2012 2013 2014 2015 2016 YTD Total Funding Funding Round 83 205208 172 116 88 711 2652 2343 1565 669 511 88 116 172 208 205 83 Global India • Globally, Total funding in the Artificial Intelligence sector has seen CAGR of 29.7% during the period 2011 – 2015. • In 2016 as well, artificial intelligence sector has already seen a considerable interest in terms of funding. • Palantir nearly garnered $1.5B of the funding in the AI space over the last 6 years. One of the few decacorns who have not gone for an IPO. YoY Funding Rounds vs. Total Funding No.offundingrounds 0 4 7 11 14 TotalFunding(In$Mn) 0 7.5 15 22.5 30 Funding Year 2011 2012 2013 2014 2015 2016YTD Total Funding Funding Rounds 12 13 5 2 0 2 20.6 10.1 1.1 00 11.5 2 0 2 5 13 12
  7. 7. Investment Trend in Applied AI : Sectors 7 No.offundingtransactions 0 18 35 53 70 TotalFunding(In$Millions) 0 6 11 17 22 Funding Year 2010 2011 2012 2013 2014 2015 2016 Total Funding No. of funding transactions 32 58 64 54 27 12 19 8 21 17 15 8 10 4 19 12 27 54 64 58 32 Enterprise - Funding Distribution 4.0% 4.7% 10.7% 11.7% 13.5% 55.4% BI & Analytics Marketing Security & Surveillance Sales Customer Service Others Industry - Funding Distribution 12.1%3.1% 6.1% 14.2% 18.0% 19.0% 27.6% Transport Pharma & Healthcare Advertising Financial Services Agriculture Retail & eCommerce Others Industry No.offundingtransactions 0 15 30 45 60 TotalFunding(In$Millions) 0 175 350 525 700 Funding Year 2010 2011 2012 2013 2014 2015 2016 Total Funding No. of funding transactions 32 53 56 49 25 13 17 202 365379 615 254 132112 17 13 25 49 56 53 32 Enterprise Software No.offundingtransactions 0 23 45 68 90 TotalFunding(In$Millions) 0 500 1000 1500 2000 Funding Year 2010 2011 2012 2013 2014 2015 2016 Total Funding No. of funding transactions 23 8484 71 48 41 22 267 1810 1507 747 276307214 22 41 48 71 84 84 23 Consumer- Funding Distribution 3.7% 5.9% 42.5% 47.9% Intelligent Robots Virtual Assistants Recommender Systems Search Engines Consumer
  8. 8. Trend in Applied AI : Early Stage Dominates 8 74% deals are Early Stage or Series A, making it right time to enter AI Deals per year in AI are showing rising trend YoY Funding Rounds vs. Total Funding No.offundingrounds 0 55 110 165 220 TotalFunding(In$Mn) 0 750 1500 2250 3000 Funding Year 2011 2012 2013 2014 2015 2016 YTD Total Funding Funding Round 83 205208 172 116 88 711 2652 2343 1565 669 511 88 116 172 208 205 83 Core AI Infrastructure #ofRounds 0 13 25 38 50 2011 2012 2013 2014 2015 2016 YTD Seed Early Late Applied AI #ofRounds 0 50 100 150 200 2011 2012 2013 2014 2015 2016 YTD Seed Early Late
  9. 9. Enterprise Cylance Ayasdi Vectra Networks Natero msg.ai Gradberry EverString Lattice Mintigo Vectra Networks RelateIQ BloomReach Captora Lattice Vectra Networks DataSift Recorded Future Premise Infer Adatao Aviso Troops Pattern Palantir Quid Topsy BloomReach Captora Persado Industry Blue River Tech Judicata The Climate Corporation Sift Science Cruise Automation Mattermark Kahuna Appier Kensho Knewton Prismatic Kensho The Climate Corporation DataVisor SIGNIFYD SIGNIFYD Prism Skylabs Silver Tail Systems Knewton The Climate Corporation Sift Science Knewton The Climate Corporation Quantcast MEMENTO Consumer Jetpac Luka SwiftKey x.ai Anki Swell Radio Fountain Powerset Khosla Ventures Y Combinator Sequoia Capital Accel Partners NEA IA Venttures Andreessen Horowitz First Round Capital Founders Fund Bain Capital Ventures Who is investing and Where - Top Investors 9 Applied AI Core AI Infrastructure Machine Intelligence Systems DataRobot Dato DataRobot Uprizer Labs MetaMind Nara Logics Enabling Technologies Trifacta Tamr Movidius Movidius Connotate NLP fido MindMeld Indisys MindMeld Visual Recognition HyperVerge Matroid Emotient Clarifai Cortica Affectiva NEA Intel Capital Accel Partners GV Horizons Ventures AIB Seed Capital Fund Capital-E Partners Greylock Partners Khosla Ventures 406 Ventures Applied AI has seen a greater number of investments from both sector agnostic as well sector specific institutional VCs. Core AI has comparatively seen investments on the lesser side.
  10. 10. AI Global Exits : M&A and IPO Trends 10 • Out of 1400+ companies tracked, 132 companies have been acquired • Acquisitions have been increasing significantly since 2013. • The first 2 quarters of 2016 has seen significantly increased acquisition activity with Technology Goliath's like Apple, Google and Salesforce leading the way. Acquisitions by Geography 6% 2% 3% 3% 8% 78% United States United Kingdom India France Canada Others Company Name Year Business Model Acquired By ZoyoAI 28-Oct-15 Applied AI – Consumer – Virtual Assistants MagicX Imagna Analytics 29-Oct-15 Applied AI - Enterprise - Marketing Fractal Analytics Shifu 04-Jan-16 Applied AI - Consumer - Recommender Systems Paytm Airwoot 14-Apr-16 Applied AI – Enterprise – Customer Service Freshdesk Targeting Mantra 05-May-16 Applied AI - Enterprise - Marketing Snapdeal Indian – Recent Acquisitions YoY - No of Acquisitions NofAcquisitions 0 10 20 30 40 Year 2011 2012 2013 2014 2015 2016 YTD 21 34 23 16 9 6
  11. 11. 11 Company Name Year Business Model Acquired By Moodstocks 06-Jul-16 Infrastructure - Visual Recognition Google Meekan 04-Jul-16 Applied AI - Consumer - Virtual Assistants Doodle Magic Pony Technology 20-Jun-16 Infrastructure - Visual Recognition Twitter Itseez 26-May-16 Applied AI - Industry - Transport - Autonomous Vehicles Intel Nuiku 24-May-16 Applied AI - Enterprise - Sales Nortek Spiderbook 24-May-16 Applied AI - Enterprise - Sales Demandbase Expertmaker 05-May-16 Applied AI - Industry - Retail & eCommerce E Bay Pathful 18-Apr-16 Applied AI - Enterprise – Marketing Mobify Airwoot 14-Apr-16 Applied AI - Enterprise - Customer Service FreshDesk Metamind 04-Apr-16 Infrastructure - Machine Intelligence Systems Salesforce Recent Major Acquisitions Company No. Of Acquisitions Google 13 Apple 7 Nuance 7 Twitter 6 Salesforce 5 Yahoo 5 Intel 4 Major Acquirers Company Name IPO Date Business Model Mobileye 31-Jul-14 Applied AI - Industry - Transport - Autonomous Vehicles - Technology Providers Recent Major IPOs 11 Business Model No. Of Acquisitions Infrastructure – Natural Language Processing 15 Infrastructure – Visual Recognition 13 Applied AI – Consumer – Virtual Assistants 10 Applied AI – Enterprise - Marketing 10 Infrastructure – Machine Intelligence Systems 9 Business Model wise Acquisition trends AI Global Exits : M&A and IPO Trends
  12. 12. Exit Trend in Applied AI Within 4 years & under $20M in Investment 12 Most exits are through M&A because of Corporates Most exits happen within 4 years and with less than $ 20mn investment AI has the highest probability of exits Source: CB Insights
  13. 13. Early Days in India : Examples 13 Early Exits Investments Acquired by PayTM ($8mn), Shifu mines the smartphone usage patterns of users and makes personalised recommendations to them. Acquired by Snapdeal( $ Undisclosed), Reduce Data’s focus is to assist brands and advertisers through leveraging artificial intelligence, real-time data and other tools. Acquired by Snapdeal( $ Undisclosed), TargetingMantra provides a unified platform to manage customer life cycle through personalisation, targeting and big data analytics. Acquired by Practo ($40mn), Qikwell used constrained based algorithm that balances the yield for the doctor and also reduces the patient time. MAD ($1.5mn) gaze tracking, emotion-expression detection, head and facial gestures for increasing consumer engagement Investors, Exinfinity & GrowX Niki.ai allows you to order services through AI driven conversational chatbot, which range from cab booking to laundry and recharges. Investors, Unilazer Arya.ai provides developer platform for businesses to quickly add AI capabilities to their enterprise software. Investors, Your nest Angel fund, Sigtuple, builds products for automated analysis of medical images and data, to aid diagnosis. Investors, Sachin, Binny Bansal, Accel Venture Partners Mezi ($9mn), is a personal shopping and travel assistant. Investors, Nexus Venture Partners, Sama Capital Netradyne ($16mn), NetraDyne is a deep learning company that focuses on computer vision in automobiles and drones. Investors, Reliance Investors Limited LOCUS ($2.75mn) provides Delivery automation solutions for on-demand businesses. Investors, Blume Ventures, BeeNext, Exfinity Ventures.
  14. 14. Next Unicorns will be driven by Applied AI 14 Core AI Building Blocks Heavy R&D Spend to solve core problems, ex. NLP, Image recognition, Deep Learning, Speech recognition, Emotions Rise of Applied AI Startups that leverage core AI frameworks to create business value New Category Leaders Mature Applied AI, with new leaders and consolidation by incumbents/laggards *R&D by large Companies pi Ventures Business Value 1990 2016 2020 We are here Seed VC Investments Growth Investments Inflection Point This is the perfect time to do Early Stage Investments in Applied AI. Near Inflection Point, new category leaders will be available at very high valuations only!*Source : Bootstrap Labs
  15. 15. Summary 15 Most of the deals are early stage or at Series A. Globally, because of disruptive nature of AI startups are seeing early exits (less than 4 years) and with lower amount of investments (<$20mn). It is the right time to start focusing on AI in India story, as early investment and exits are starting to take place and early set of talent is focusing on attacking Applied AI themes. “AI winter” is turning into “AI Spring”, as Deep Learning revolutionises the AI field by massively increasing the accuracy levels in text, speech and image recognition. This is making AI practicable for business problems now. Applied AI is attracting the most amount of investment ($8.5B). In Applied AI, Enterprise (BI & Analytics), Transport & Healthcare, Transport (Automotive and Others) lead the trend.
  16. 16. References 16 https://www.cbinsights.com/blog/artificial-intelligence-mergers- acquisitions-exits/ http://insights.venturescanner.com/category/artificial-intelligence-2/ http://www.slideshare.net/BootstrapLabs/bootstraplabs-tracxn-report- artificial-intelligence-for-the-applied-artificial-intelligence- conference-2016
  17. 17. Thank You! 17 & World’s Largest Start-up Research Platform www.tracxn.comwww.piventures.in India’s Only AI focussed Venture Fund

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