The Artificial Intelligence (AI) Investment Landscape

Equity financings to the AI space have gone from $282M in 2011 to $2.4B in 2015, a 746% increase in just 5 years.
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
Artificial Intelligence deal http www cbinsights Source http www blog Artificial Intelligence funds machine learning
Equity financings to the AI space have gone from $282M in 2011 to $2.4B in 2015, a 746% increase in just 5 years.
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
Artificial Intelligence deal http www cbinsights Source http www blog Artificial Intelligence funds machine learning
<p>Q&A
If you have questions, you can ask them at anytime via the "Questions tab." We 
will do our best to answer them live and will also save a few to answer at the 
end.
Twitter
Share interesting insights or data points you hear on Twitter using the hashtag 
#CBIAI. We are @cbinsights.
The Artificial Intelligence (AI) 
Webinar will begin shortly
Tuesday, June 28, 2016
1 PM NYC
1
Webinar recording will be 
distributed immediately after
The presentation will also be sent to you. Feel free to 
share with colleagues. The resolution of some slides may 
be suboptimal due to the webinar software. Those slides 
will look fine in the presentation that we send you.
During the webinar, technical help is also available
http://support.citrixonline.com/en_US/Webinar
2
ABOUT OUR PRESENTER  NICK PAPPAGEORGE
3
 Tech Industry Analyst, CB Insights
 Published research and data analysis that have 
been cited in Forbes, Fortune, Wired, Quartz, 
Re/Code, and Business Insider, among other 
publications
 Focuses on IoT, AR/VR, drones, and wearables 
research
 Formerly worked at MakerBot Industries (3D 
printing) in a research role
 Graduate of Hamilton College
@NpappaG
npappageorge@cbinsights.com
JOIN THE CONVERSATION
4
Share your favorite insights and data 
points on Twitter
@CBInsights
#CBIAI
ABOUT CB INSIGHTS
A unique combination of data science and machine learning to help you see what's next.
About CB Insights
Backed by RSTP and the National Science Foundation, CB Insights uses data science and machine
learning to help our customers predict what's nexttheir next customer, their next investment, the next
market they should attack, the next move of their competitor or the next company they should acquire.
The world's leading global corporations
including the likes of Cisco, Salesforce,
Castrol and Gartner as well as top tier
VCs including, NEA, Upfront Ventures,
RRE, and FirstMark Capital rely on CB
Insights to make decisions based on
data, not decibels.
To make your life easier, visit 
http://www.cbinsights.com
"A detailed discussion of data collection and how the company parses them is written by CB Insights' data 
scientists; it convincingly tells the story of scalability and accuracy for what they call "The Cruncher."
From "Predictive Analytics And Novel Visualization Draw Customers To 'Must Have' Data" published April 8, 2015 
5
WHAT WE'LL COVER TODAY
2
Focus: Healthcare
Investment trends, companies to watch
3
5
1
6
4
Other Hot Areas
Drilling into Ads, B.I., and opportune areas for investment
Investment Trends & Players
Equity funding to AI, deal share by stage, and corporates
Where AI Is Going
Subindustry opportunities, big exits, and industry news
Definitions of AI
What it is, shape of industry, verticals where it's being applied
ARTIFICIAL INTELLIGENCE: THE NEW TECH FOCUS
"In the long run, I think we will evolve in computing from a
mobile-first to an AI-first world."
Sundar Pichai
CEO, Google Inc.
"I think advances in AI can help save peoples lives."
Mark Zuckerberg
CEO, Facebook
7
"It's the first inning. It might even be the first guys up at bat.
We're on the edge of the golden age [of AI]."
Jeff Bezos
CEO, Amazon
"Artificial intelligence will continue to be an unceasing core
for Baidu Innovations."
Robin Li
CEO, Baidu
Our definition of AI: companies applying AI 
solutions to verticals like healthcare, advertising, 
and finance as well as those developing general-
purpose AI tech.
8
WHAT IS AI? KNOW YOUR BUZZWORDS
9
Definition of AI: a branch of computer science
trying to get computers to exhibit intelligence.
 Machine Learning is a range of techniques
for computers to perform cognitive functions
 Deep Learning (a type of Machine Learning
that uses layers of neural networks) has been
the most
accurate
and productive
technique in AI research
Check out Frank Chen of a16z's recent video
on the subject.
A.I.
Machine Learning
Deep Learning
WHAT DOES AI LOOK LIKE?
10
AI techniques will make every application smarter, faster, and better suited for our needs. Most of us already
use deep learning and machine learning products every single day. Buzzfeed headlines, Airbnb suggested
listing prices, and Facebook's M assistant all use deep learning and machine learning algorithms.
11
A FEW SUB-INDUSTRIES USING AI TECHNOLOGIES: 
 Healthcare
 Business Intelligence
 Finance
 Cybersecurity

Internet of Things
 Advertising, Sales & Marketing
 Autonomous Vehicles
 Personal 
Assistants/Productivity
 E-Commerce
 Agriculture
 Robotics
 Legal
 Education
EMERGING AI APPLICATIONS
12
AI TRENDS
13
AI TRENDS
14
AI TRENDS
15
THE AI 
INVESTMENT 
LANDSCAPE
16
Global artificial intelligence equity funding:
$6 BILLION
across
1,098 DEALS
17
DEALS AND DOLLARS TO AI STARTUPS REACHED A NEW
HIGH IN 2015
Equity financings to the AI space have gone from $282M in 2011 to $2.4B in 2015, a 746% increase in just 5
years.
18
DEALS TO THE SPACE ARE INCREASING FAST
AI deals peaked in Q1'16 at 143, which translates to 36% growth quarter-over-quarter. Q4'14 and Q3'15,
each saw huge tallies of more than $900M invested.
19
MAJORITY OF DEALS GO TO EARLY-STAGE STARTUPS
Early stages saw the majority of deals over the past 5 years, though the figure is retreating slightly as the
industry matures. In 2011, 70% of deals were seed or Series A, whereas now it's 65%.
20
MIDDLE-STAGE STARTUPS RECEIVED MOST FUNDING
While AI deals skew toward the early stage, it's middle-stage deals (Series B and Series C) that have 
generally seen the most dollars invested.   
21
KHOSLA VENTURES EMERGES AS MOST ACTIVE VC 
INVESTOR
Venture capital firms have been actively investing AI startups. The rankings below are based on unique 
horizontal and vertical AI companies invested in from 2011 to 2016 year-to-date.
1
2
2
4
22
MOST ACTIVE VC INVESTORS
The Business Social Graph helps visualize connections between startups and investors. Data Collective
and Khosla Ventures share many portfolio companies including Vicarious and Timeful.
23
The Business Social Graph
CORPORATE INTEREST IN ARTIFICIAL INTELLIGENCE 
STARTUPS RISING
Corporate-backed deals and dollars reached a new high in 2015, with $926M invested across 88 deals. Some
of the highest-funded rounds last year include a $117M Series E round raised by Taboola (backed by
Advance Publications), a $60M Series D round raised by InsideSales.com (backed by Salesforce Ventures),
and a $55M Series C round raised by Ayasdi (backed by Citi Ventures).
24
CORPORATE-BACKED DEALS REACHED NEW HIGH IN Q1'16
Q1'16 set a deals record for corporate-backed equity financing in artificial intelligence. Some of the highest
funded rounds last quarter were raised by Digital Reasoning Systems (backed by NASDAQ, In-Q-Tel), and
IBM Watson Group-backed Pathway Genomics.
The funding high in Q1'15 was driven by the previous-mentioned rounds raised by Ayasdi, Taboola, and
InsideSales.com.
25
MOST ACTIVE CORPORATE INVESTORS
All top corporates investing in AI, unsurprisingly, are tech or data giants. Investment in the space likely
offers strategic value to extract more from their data-driven core businesses.
26
Source: https://www.cbinsights.com/blog/most-active-corporate-investors-artificial-intelligence/
MOST ACTIVE CORPORATE INVESTORS
Expect Labs saw investment from Intel, Google, and Samsung's venture arms.
27
The Business Social Graph
WHAT AREAS ARE HOT?
28
THE MOST WELL-FUNDED CORE AI COMPANIES
Company
Total Funding ($M)
$144M
$98M
$57M
Description
$76M
AI platform that employs deep learning to a number of 
verticals. 
Uses machine learning algorithms to analyze risk in 
banks, and has also applied the technology to extract 
insights from healthcare datasets.
Machine learning platform for data.
Develops machine learning software for cognitive tasks 
that mimic the human brain. 
$67M
Machine learning platform for predictive modeling. 
29
HEATMAP OF DEAL SATURATION
One of the top areas for deals has been Healthcare, Ads, BI, Cybersecurity, and Finance.  
30
Source: https://www.cbinsights.com/blog/artificial-intelligence-investment-heatmap/
HEALTHCARE
31
"I don't think any physician today should be 
practicing without artificial intelligence assisting 
in their practice. It's just impossible (otherwise) 
to pick up on patterns, to pick up on trends, to 
really monitor care."
-Bernard Tyson of Kaiser Permanente
32
"I don't think any 
physician today should 
be practicing without 
artificial intelligence 
assisting in their 
practice. It's just 
impossible (otherwise) to 
pick up on patterns, to 
pick up on re ds, to 
really monitor care."
Bernard Tyson
CEO, Kaiser Permanente
Image Source: Fortune
AI HEALTHCARE MARKET MAP
33
Source: https://www.cbinsights.com/blog/artificial-intelligence-startups-healthcare/
THE MOST WELL-FUNDED AI COMPANIES IN HEALTHCARE
@cbinsights
Company
Total Funding ($M)
$192M
$154M
$42M
Description
$141M
Health management platform and social network to 
improve health outcomes. 
AI platform for facilitating research, treatment, 
preventative care, and nutrition. 
Applies AI to improve efficiency of pharmaceutical 
R&D process.
High-performance ultrasound imaging that employs 
deep learning algorithms. 
$100M
Analyzes clinical data and patient charts. 
#CBIAI
34
HEALTHCARE AI YEARLY DEALS AND DOLLARS
Deals to healthcare-related AI companies have been increasing year-or-year since 2011, with deals more than
doubling in 2014, and more tapered growth in activity in 2015. Funding jumped by nearly 460% in 2014, to
$358M from $64M in 2013. This funding jump was driven by Butterfly Network's $100M Series C round and
Stratified Medical's round of $64M. In comparison, the largest round in 2013 was for less than $20M.
35
Source: /https://www.cbinsights.com/blog/artificial-intelligence-healthcare-startups-funding-trends
HEALTHCARE AI QUARTERLY DEALS AND DOLLARS
Deals reached a new high of 30 in Q1'16, breaking the previous quarter's record of 21. Funding did not see a
similar run-up, indicating that many of the deals in Q1'16 were for relatively small amounts. The funding peak
in Q4'14 was driven by the previously-mentioned rounds to Butterfly Network and Stratified Medical.
36
Source: /https://www.cbinsights.com/blog/artificial-intelligence-healthcare-startups-funding-trends
AI HEALTHCARE DEALS BY STAGE
New startups are clearly venturing into this space, with more than 20 AI-based healthcare-focused
companies raising seed/angel funds in 2015, compared to less than 5 in 2011. Overall, seed/angel deals
dominated with a 46% share of deals during the last 5 years, followed by Series A deals at 23%.
Some of the late-stage startups in this space include Pathway Genomics, WellTok, and Apixio.
37
Source: /https://www.cbinsights.com/blog/artificial-intelligence-healthcare-startups-funding-trends
AI HEALTHCARE FUNDING BY STAGE
Startups raising Series A rounds received the largest share of funding, 33%. The largest Series A round was 
raised by China's iCarbonX in Q2'16 ($154M), which is backed by Tencent and VCANBIO.
Mid-stage startups raising Series B and C rounds accounted for 32% of total dollar funding to the space, 
though mid-stage deals constituted just 13% of the total deals to the space
38
Source: /https://www.cbinsights.com/blog/artificial-intelligence-healthcare-startups-funding-trends
HEALTHCARE VS OVERALL AI DEALS
As a percentage of total deals to startups using artificial intelligence tech, healthcare increased gradually
from 11% in 2011 to 15% last year.
39
Source: https://www.cbinsights.com/blog/artificial-intelligence-healthcare-startups-funding-trends
OTHER HOT AREAS
40
THE MOST WELL-FUNDED AI COMPANIES IN ADS, SALES, 
AND MARKETING
Company
Total Funding ($M)
$199M
$70M
$58M
Description
$66M
Predictive sales analytics platform.
Predictive marketing and sales software.
Cognitive content generation platform. 
Content marketing platform.
$59M
Marketing and communication automation for mobile. 
41
THE MOST WELL-FUNDED AI COMPANIES IN B.I. 
Company
Total Funding ($M)
$128M
$125M
$75M
Description
$95M
Customer insights NLP and sentiment analysis.
Analyzes text for customer insights.
Social media sentiment analysis tools.
Big Data services for a variety of industries.
$76M
Big Data services for a variety of industries.
42
43
WHERE AI IS 
GOING
HEATMAP OF DEAL SATURATION
E-commerce and education are areas where deal volume has been relatively light. CRM and personal 
assistants have seen an increasing amount of activity. 
44
AI EXITS: M&A ACTIVITY INCREASES 7X
AI is on track to have a record year for exits, on top of a record-breaking 2015 that saw 2 IPOs among 38
overall exits.
45
Source: https://www.cbinsights.com/blog/artificial-intelligence-mergers-acquisitions-exits/
AI STARTUPS ARE SNAPPED UP EARLY
Most AI companies are acquired within 4 years of their first financing.
46
Source: https://www.cbinsights.com/blog/artificial-intelligence-mergers-acquisitions-exits/
TIMELINE OF MAJOR ACQUISITIONS
47
*Exact date of Orbeus acquisition not disclosed 
Date
Headline
April 4, 2016
June 18, 2016
January 27, 2016
48
May 9, 2016
NOTABLE AI NEWS
June 18, 2016
RECENT DEALS
49
RECENT ARTIFICIAL INTELLIGENCE DEALS 
Company
Round
Description
$154M Series A, April 2016
AI-based healthcare 
analytics startup
$100M Growth Equity, May 2016
Machine learning-
based data analytics 
for businesses
$27M Series B, April 2016
AI-based global trade 
solutions
Data mining and 
machine learning 
solutions for IoT
$26M Series B, May 2016
50
Applies AI to detect 
malware threats.
$100M Series D, June 2016
QUESTIONS?
@CBInsights
#CBIAI
Share your favorite insights and data 
points on Twitter
51
@NpappaG
Web | www.cbinsights.com 
Twitter | @cbinsights
Tel | 212.292.3148
52
</p>