AI Funding Reaches Record Year in 2018

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With 2018 now behind us, let’s examine how artificial intelligence (AI) funding compares to previous years. The graphic below shows the total annual AI funding amounts over time. 

AI Annual Funding Over Time

As the graphic demonstrates, 2018 experienced the highest AI funding on record at $18B. It represents a 24% increase from the previous year’s funding. In addition, AI funding grew at a CAGR of 62% from 2013 to 2018. It'll be interesting to observe if the funding growth will remain strong in the new year.

To learn more about our complete artificial intelligence dynamic report, visit us at www.venturescanner.com or contact us at [email protected].

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Machine Learning-Related Categories Lead Artificial Intelligence Funding

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We’ve previously highlighted that artificial intelligence (AI) funding has seen explosive growth in recent years. When we take a closer look at the funding trends for each category within AI, we notice two key takeaways:

The Machine Learning Platforms category leads the sector in Q3 funding
The Machine Learning Applications category leads the sector in all-time funding

We’ll highlight these takeaways with some graphics and discussions below.

The Machine Learning Platforms Category Leads AI In Q3 Funding

To start off, let’s review the amount of funding raised this quarter by each category within artificial intelligence.

Artificial Intelligence Latest Quarter Category Funding

The above graphic highlights that the Machine Learning Platforms category leads the sector in Q3 funding with $1.9B. The Computer Vision Platforms category follows in second place with $1.6B in Q3 funding.

Machine Learning Platform companies build self-learning algorithms that operate based on existing data. They include predictive data models and...

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Artificial Intelligence Sector Overview - Q3 2018

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The artificial intelligence sector has experienced explosive funding growth in recent years. This blog post examines the different components of the AI sector and how they make up this startup ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.

Machine Learning Applications Is the Largest Artificial Intelligence Category

Let’s start off by looking at the Sector Map. We have classified 2,316 artificial intelligence startups into 13 categories that have raised $45 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Artificial Intelligence Sector Map

We see that Machine Learning Applications is the largest category with 866 companies. These companies utilize self-learning algorithms to optimize business operations in vertically specific use cases. Examples include using machine learning to...

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Artificial Intelligence Startup Highlights  – Q3 2018

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Here is our Q3 2018 summary report on the artificial intelligence startup sector. The following report includes a sector overview and recent activity.

Artificial Intelligence Slideshare Title

Artificial Intelligence Splash Slide

Artificial Intelligence Sector Map

Artificial Intelligence Innovation Quadrant

Artificial Intelligence Funding by Category

Artificial Intelligence Funding Over Time

Artificial Intelligence Funding Round Counts

Artificial Intelligence Exits Over Time

Artificial Intelligence Company Count by Country

About Venture Scanner

Artificial Intelligence Slideshare End

To learn more about our complete artificial intelligence report and research platform, visit us at www.venturescanner.com or contact [email protected].

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Mid-Year Artificial Intelligence Exits Analysis

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In Q2, AI had the second highest exit activity on record. Now armed with the data through June 2018, we’re performing a mid-year status check on how this year is shaping up.

Based on analysis on our AI research platform, we see that exit activity in the first half of 2018 is slightly down from 2017.

2018 Mid-Year AI Exit Activity Lower Than 2017 But Higher Than 2016

Let’s take a closer look at the number of AI exit events by year.

artificial-intelligence-exits-by-quarter

The above graphic shows 32 exits in the first half of 2018. For the past three years, Q3 and Q4 accounted for 46% of total exit events on average. If that trend holds, 2018 exits finish the year slightly lower than 2017, but higher than 2016. We'll see if the second half of the year changes this trend!

To learn more about our complete artificial intelligence report and research platform, visit us at www.venturescanner.com or contact us at [email protected].

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Artificial Intelligence Startup Highlights  – Q2 2018

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Here is our Q2 2018 summary report on the artificial intelligence startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete artificial intelligence report and research platform, visit us at www.venturescanner.com or contact [email protected].

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Machine Learning Categories Lead AI Funding

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Last quarter we observed that the artificial intelligence sector is maturing. This quarter we are conducting a deeper analysis on our AI research platform to examine funding by category. Our analysis shows two important observations:

  • Machine Learning Platforms and Computer Vision Platforms lead the sector in Q2 funding
  • Machine Learning Applications dominates the sector in all-time funding

We’ll explain these observations with some graphics and discussions below.

Machine Learning Platforms and Computer Vision Platforms Lead AI in Q2 Funding

To start off, let’s scrutinize the AI funding by category in Q2.

Artificial Intelligence Current Quarter Category Funding

The above graphic shows that both Machine Learning Platforms and Computer Vision Platforms lead the sector in Q2 funding with $1.5B each. Machine Learning Applications and Smart Robots follow in the second and third places with $1.4B and $1B, respectively. It’s also noteworthy that there is a steep drop-off after Smart Robots, as its funding is 3.4 times higher...

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Deep Learning Applications and Computer Vision Platforms Lead AI Exit Activity

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Last quarter we reviewed artificial intelligence exit trends and saw strong growth. We now dig in one level deeper on our AI report and research platform to examine exits by category. We conclude that Deep Learning Applications and Computer Vision Platforms are at the forefront of AI exit activity.

This conclusion was derived from two takeaways:

  • The Deep Learning Applications category leads in the number of exits
  • The Computer Vision Platforms category leads in acquisition amount

We’ll illustrate these takeaways with some graphics that show AI exit activity by category.

To help set the stage, the graphic below shows AI exit activity over time. As you can see, the sector’s exit activity experienced strong growth over the past few years.

Artificial Intelligence Exits by Quarter

Deep Learning Applications Leads AI in the Number of Exits

Let’s examine the exit events for each AI category. Exit events include both acquisitions and IPOs. The below graph highlights the number of AI exit events by category.

Artificial Intelligence Exits by Category

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Artificial Intelligence Sector Overview - Q1 2018

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Artificial Intelligence (AI) has seen a lot of buzz in the news recently. As previously noted, funding into the AI sector grew exponentially in the past few years. We’ve also observed that funding amounts and funding counts have shifted to later stages, indicating that the sector is maturing. 

We will now examine the different components of AI and how they make up this startup ecosystem. On our AI research platform, we have classified the companies into 13 categories. This blog post illustrates what these categories are and which categories have the most companies. We will also look at how these categories compare with one another in terms of their funding and maturity.

Machine Learning Applications Is the Largest AI Category

Let’s start off by looking at the Sector Map for the AI sector. As of March 2018, we have classified 2161 AI startups into 13 categories that have raised $32 billion. The Sector Map highlights the number of companies in each category. It also...

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Artificial Intelligence Startup Highlights  – Q1 2018

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Here is our Q1 2018 summary report on the Artificial Intelligence startup sector. The following report includes an overview, recent activity, and a category deep dive.

Artificial Intelligence Slideshare Title

Artificial Intelligence Slideshare Intro Slide

Artificial Intelligence Sector Summary

Artificial Intelligence Sector Map

Artificial Intelligence Innovation Quadrant

Artificial Intelligence Annual Funding Over Time

Artificial Intelligence Quarterly Funding Over Time

Artificial Intelligence Exit Events Over Time

Artificial Intelligence Latest Activity

Artificial Intelligence Funding Round Counts

Artificial Intelligence Quarterly Category Funding

Artificial Intelligence Recent Funding Events

Artificial Intelligence Recent Exit Events

Artificial Intelligence Deep Learning Platforms

Artificial Intelligence Venture Investing

Artificial Intelligence Category Funding Quartiles

Deep Learning Platforms Total Annual Funding

Deep Learning Platforms Companies with Largest Funding Amounts

About Venture Scanner

Venture Scanner Process

Artificial Intelligence Slideshare End Slide

To learn more about our complete Artificial Intelligence report and research platform, visit us at www.venturescanner.com or contact [email protected].

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AI Sector Maturing As Funding Shifts to Later Stage

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Last quarter we saw that Artificial Intelligence (AI) funding grew exponentially in 2017. This quarter we are going one level deeper on our AI research platform to examine its funding by round. From our analysis we can conclude that the AI sector is maturing. 

This conclusion comes from two takeaways:

  •      Funding amounts are shifting to mid and late-stage events
  •      Later-stage funding counts increased while early-stage funding counts dropped

We’ll explain these takeaways with some graphics that show AI funding activity by round.

To help set the stage, the graphic below illustrates AI funding amount over time. As you can see, the sector’s funding exploded in 2017.

Artificial Intelligence Annual Funding Amount

AI Funding Amounts Shifting to Mid and Late-Stage Events

We’ll start off by examining the annual AI funding amounts. The below graph shows recent AI funding amounts in different rounds.

Artificial Intelligence Funding Amount by Round

We see that AI funding amount for all stages grew from 2012 to 2017. Most...

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Venture Scanner Sector Maps (Part 2 of 2)

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Our sector maps are snapshots of emerging technology sectors. They show what the different categories in a sector are and how many startups are within each category. They also present a small sampling of the current startups that are innovating in each category.

Last week, we kicked off our sector map update with Part 1. You can read that blog post here.

This post is the second of a two-part series. Below you will find sector maps for Artificial Intelligence, Internet of Things, Marketing Technology, Real Estate Technology, Retail Technology, Security Technology, Transportation Technology, and Virtual Reality.

Artificial Intelligence: 13 categories, 2161 companies, $32B in funding

Artificial Intelligence Sector Map

Internet of Things: 20 categories, 2151 companies, $52B in funding

Internet of Things Sector Map

Marketing Technology: 15 categories, 1771 companies, $33B in funding

Marketing Technology Sector Map

Real Estate Technology: 12 categories, 1649 companies, $48B in funding

Real Estate Technology Sector Map

Retail Technology: 21 categories, 1746 companies, $59B in funding

Retail Sector Map

Security Technology: 14...

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Artificial Intelligence Exit Activity Sees Strong Growth

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The Artificial Intelligence (AI) sector saw exponential growth in last year’s funding. Does its exit activity trend correspond with the growth in funding? On our AI research platform, we have analyzed the data through 2017 and can conclude that AI exit activity is also seeing very robust growth over time. 

This observation was derived from two takeaways:

  •      AI exit activity exploded at the annual level
  •      Quarterly AI exits also saw healthy growth

We’ll illustrate these takeaways with two graphics that show AI exit activity trends over the years.

AI Exit Activity Exploded in Recent Years

Let’s start off by examining the AI exit events from 2011 to 2017. Exit events include both acquisitions and IPOs. The below graph highlights the number of annual AI exits stacked by quarters.

Artificial Intelligence Exits by Quarter Stacked

This graph illustrates that AI exit activity is skyrocketing. Specifically, the number of exits in 2017 was 175% of that in 2016. Additionally, the...

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Artificial Intelligence Sector Overview - Q4 2017

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As we previously noted, interest in AI has exploded. Its applications can be found in virtually every industry from marketing to healthcare to finance. On our AI research platform, we have classified the companies in the sector into functional categories. This blog post aims to examine these categories and how they compare with one another through a series of graphics.

Machine Learning Applications Is the Largest AI Category

Let’s start off by looking at the Logo Map for the AI sector. As of January 2018, we have classified 2,029 AI startups into 13 categories which collectively raised $27 billion in funding. The Logo Map highlights the number of companies in each category and a random sampling of these companies.

Artificial Intelligence Logo Map

We have seen what the different categories in AI are and how many companies are within each category. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

Most of the AI Categories Are Pioneers

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Age by Category in Artificial Intelligence - Q3 2017

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The following graph shows average and median age in the Artificial Intelligence sector. The graphic includes data through July 2017.

Artificial Intelligence Age by Category

The above graph summarizes the average and median age of companies in each Artificial Intelligence category. The Speech to Speech Translation category has the highest average age at around 13 years, followed by the Speech Recognition category with an average age of 9 years. The Speech Recognition category also has the highest median age at around 8.5 years. Machine Learning Applications is the youngest category with an average age of 5 years and a median age of 4.5 years.

We are currently tracking 1965 Artificial Intelligence companies in 13 categories across 70 countries, with a total of $23.7 Billion in funding. Click here to learn more about the full Artificial Intelligence market report.

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Where in the World Are Artificial Intelligence Startups? - Q3 2017

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The analyses below summarize where Artificial Intelligence (AI) innovations are occurring. The graphics includes data through July 2017.

Artificial Intelligence Company Count by Country

The above map shows the number of AI companies located in different countries. The United States ranks as the top country with over 1000 companies.

Artificial Intelligence VC Funding by Country

The above map shows the amount of total AI startup venture capital funding in different countries. The United States has the most VC funding at around $10B.

We are currently tracking 1951 AI companies in 13 categories across 70 countries, with a total of $23.3B in funding. Click here to learn more about the full Artificial Intelligence market report.

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Artificial Intelligence Companies Founded by Year - Q3 2017

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The following graph shows the founding year distribution in the Artificial Intelligence sector. The graphic includes data through July 2017.

Artificial Intelligence Companies Founded by Year

The above graph summarizes the number of Artificial Intelligence companies founded in a certain year. 2014 ranks at the top with around 259 companies founded in that year alone. 2013 is the runner-up with 244 companies founded in that year.
 
We are currently tracking 1942 Artificial Intelligence companies in 13 categories across 70 countries, with a total of $23 Billion in funding. Click here to learn more about the full Artificial Intelligence market report.

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Artificial Intelligence Funding Trends - Q3 2017

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The following graphs highlight recent trends in Artificial Intelligence (AI) startup funding activity. The graphics include data through July 2017.

AI Q3 2017 Funding by Year

The above graph summarizes the total funding raised by AI startups for each year. 2017 has the most funding to date at just over $6B.

AI Q3 2017 Funding by Vintage Year

The above graph summarizes the total amount of funding raised by AI companies founded in a certain year. Companies founded in 2012 have raised the most funding around $4B.

We are currently tracking 1,931 AI companies in 13 categories across 70 countries, with a total of $22 Billion in funding. Click here to learn more about the full Artificial Intelligence market report.

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Artificial Intelligence Funding by Round - Q3 2017

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The following two graphs summarize the rounds of funding going into the Artificial Intelligence (AI) space. Please note these graphics are made using data through July 2017.

Artificial Intelligence Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. From 2006 to 2016, we saw a general increase in the overall sector funding, with the total amount peaking in 2016. Earlier stage funding rounds (Series A, B, and C) made up most of the funding amount.

Artificial Intelligence Funding Count by Round

The graph above shows the total count of funding events broken out by round. From 2006 to 2016 we’ve seen a general upward trend that peaked in 2014 and 2015, and then declined slightly in 2016. Earlier stage funding such as Seed, Series A, and Series B events make up the majority of funding event counts. 

We are currently tracking 1917 Artificial Intelligence companies in 13 categories across 70 countries, with a total of $21.5 Billion in funding. Click here to learn more about the full Artificial Intelligence market report.

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Artificial Intelligence Activity by Selected Investors - Q3 2017

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The following graph summarizes investor activity in the Artificial Intelligence (AI) space. Please note these graphics are made using data through July 2017.

AI Investor Activity Q3 2017

The above analysis summarizes the total number of investment rounds AI investors participated in, and the number of unique companies funded by those investors. Major investors into the space include Y Combinator, NEA, Sequoia Capital, 500 Startups, and CE Ventures. 

We are currently tracking 1,906 AI companies in 13 categories across 70 countries, with a total of $19 Billion in funding. Click here to learn more about the full Artificial Intelligence market report.

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