Insurance Technology Startup Highlights  – Q1 2018

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

To learn more about our complete Insurance Technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

3D Printing Sector Maturing As Funding Shifts to Later Stage

As we’ve previously seen, funding into the 3D Printing sector demonstrated robust growth in recent years. Now we are going one level deeper on our 3D Printing research platform to examine its funding by round. From our analysis we can conclude that the 3D Printing sector is maturing.

This conclusion comes from two takeaways:

  • While funding amounts in all rounds grew, later stage saw the largest increase
  • Funding counts also increased in the later stage

We’ll explain these takeaways with some graphics that show 3D Printing funding activity by round.

To help set the stage, the graphic below illustrates 3D Printing funding amount over time. As you can see, the sector’s overall funding saw strong growth in recent years.

3D Printing Funding by Quarter
3D Printing Funding by Quarter

3D Printing Funding Amounts Saw Largest Growth in Later Stage

We’ll start off by examining the annual 3D Printing funding amounts by round.

3D Printing Funding Amount by Round
3D Printing Funding Amount by Round

While the funding amounts in all rounds rose, Series C and Series D saw the largest increase. Specifically, Series C funding amounts increased by $135M and Series D increased by $315M from 2012 to 2017.

We’ll now look at the 3D Printing funding amount by round as a percentage of the total, which shows changes independent of the total size.

3D Printing Funding Amount Percentages
3D Printing Funding Amount Percentages

The above graph supports our previous observation that later stage funding amounts saw the largest growth from 2012 to 2017. In 2012, Seed, Series A, and Series B events accounted for over 85% of funding. By 2017, there was a complete shift, with Series D events accounting for over 50%. Seed, Series A, and Series B funding amount percentages also dropped significantly in 2017.

So we see that the funding amounts graphs indicate a shift from early stage to later stage from 2012 to 2017. Would the funding event count graphs show the same trend? Let’s examine them in the next section to find out.

3D Printing Funding Counts Shifting to Later Stage

Let’s now look at the annual 3D Printing funding event counts. The below graph shows the 3D Printing funding counts by round as a percentage.

3D Printing Funding Count Percentages
3D Printing Funding Count Percentages

This graph corresponds with the last graph in showing that the funding counts in the later stage saw increases from 2012 to 2017. Specifically, Series C funding counts grew to 20% and Series D grew to 8%. On the other hand, the funding counts in Seed and Series B both decreased.

Combining these two graphics, we can see that 3D Printing funding counts shifted from the Seed stage to the later stage from 2012 to 2017.

Conclusion: The 3D Printing Sector Is Maturing

In conclusion, we have seen that 3D Printing funding amounts saw the largest increase in later stage events. 3D Printing funding counts also grew in the later stage and dropped in the Seed stage. These observations led us to conclude that the 3D Printing sector is maturing. While funding counts decreased recently, investors are putting larger funding into well-established companies.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete 3D Printing report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Artificial Intelligence Sector Overview – Q1 2018

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 shows a random sampling of companies in each category.

Artificial Intelligence Sector Map
Artificial Intelligence Sector Map

We see that Machine Learning Applications is the largest category with 762 companies. This category contains companies utilizing algorithms that learn and optimize automatically from data. These companies tackle issues in specific use cases such as detecting banking fraud or identifying top retail leads. Some example companies include Sift Science, SparkCognition, Sumo Logic, and BenevolentAI.

We have seen what the different categories making up this sector are and the number of companies in each. 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

Our Innovation Quadrant divides the AI categories into four different quadrants.

Artificial Intelligence Innovation Quadrant
Artificial Intelligence Innovation Quadrant

We see that the Pioneers quadrant has the most AI categories with 8. The Pioneer categories are in the earlier stages of funding and maturity. Speech Translation and Speech Recognition landed in the Established quadrant. Both of these speech technology-related categories have reached maturity yet with less financing.

Smart Robots, Recommendation Engines, and Machine Learning Platforms are in the Disruptors quadrant for acquiring significant financings at a young age.

We’ve now seen the AI categories and their relative stages of innovation. How do these categories stack up against one another? Let’s look at the Total Funding and Company Count Graph.

Machine Learning Applications Startups Have the Most Funding and Companies

The graph below shows the total amount of venture funding and company count in each category.

Artificial Intelligence Total Funding and Company Count
Artificial Intelligence Total Funding and Company Count

As we’ve seen in the Sector Map and the above graphic as well, the Machine Learning Applications category leads the AI sector with 762 companies. The above graphic also shows that Machine Learning Applications leads in funding with almost $16 billion. Some of the best-funded companies in this category include Toutiao ($3B), Argo AI ($1B), Indigo ($359M), and Wecash ($328M).

The funding in Machine Learning Applications is more than 267% of that in the next category, Machine Learning Platforms. These two categories are related yet have different functions. Machine Learning Applications companies apply self-learning algorithms to optimize specific business operations. Machine Learning Platforms companies build these self-learning algorithms or their underlying infrastructure.

Conclusion: Machine Learning Applications Category Dominates the AI Sector

From the above analysis, we can see that Machine Learning Applications dominates the AI sector in total funding and company count. It’ll be interesting to see how the AI landscape will change and develop throughout the rest of 2018.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Artificial Intelligence report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Blockchain Technology Startup Highlights  – Q1 2018

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

To learn more about our complete Blockchain Technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Artificial Intelligence Startup Highlights  – Q1 2018

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.

To learn more about our complete Artificial Intelligence report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Transportation Technology Sector Overview – Q1 2018

We’ve seen a lot of funding and exit activity in Transportation Technology over the past few years. The Transportation Technology sector includes companies that revolutionize the way people move around. It also includes technology companies that enable people to interact with their transportation options.

What are the different components of Transportation Technology? How do they make up this startup ecosystem? On our transportation technology research platform, we have classified the companies into 17 categories. This blog post examines these categories and how they compare with one another.

Automotive Telematics Is the Largest Transportation Technology Category

Let’s start off by looking at the Sector Map for the Transportation Technology sector. As of March 2018, we have classified 1,238 Transportation Technology startups into 17 categories that have raised $117 billion in funding. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Transportation Technology Sector Map
Transportation Technology Sector Map

We see that Automotive Telematics is the largest category with 210 companies. This category contains companies that collect, analyze, and distribute car data. This data is used by owners to optimize their automotive use. Their products include on-board data readers, diagnostic tools, and notifications to mobile devices. Some example companies in this category are Zubie, Otonomo, Airbiquity, and CloudCar.

We have seen what the different categories making up this sector are and the number of companies in 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 Transportation Technology Categories Are Pioneers

Our Innovation Quadrant divides the Transportation Technology categories into four different quadrants.

Transportation Technology Innovation Quadrant
Transportation Technology Innovation Quadrant

We see that Pioneers quadrant has the most Transportation Technology categories with 11. The Pioneer categories are in the earlier stages of funding and maturity. 5 categories are in the Established quadrant for having reached maturity with less financing. Ride Hailing is a Disruptor for acquiring significant financing at a young age.

We’ve now seen the Transportation Technology categories and their relative stages of innovation. How do these categories stack up against one another in total funding? Let’s look at the Total Funding and Company Count Graph.

Ride Hailing Startups Have the Most Funding

The graph below shows the total amount of venture funding and company count in each category.

Transportation Technology Total Funding and Company Count
Transportation Technology Total Funding and Company Count

As the above graphic implies, the Ride Hailing category leads in funding with $61 billion. Its funding is almost 250% of the funding of the next category, Smart City. Most notably, about 67% of Ride Hailing funding ($41 billion) comes from two companies: Uber and Didi Chuxing.

Ride Hailing companies enable consumers to schedule a ride either in real time or in the future. They include transportation network companies, white label mobile applications, and website booking portals. Some example companies in this category are Uber, Didi Chuxing, Lyft, and Ola Cabs.

Conclusion: Automotive Telematics and Ride Hailing Lead the Sector

The analysis above highlights that the Automotive Telematics category leads the sector in total companies, and the Ride Hailing category in total funding. Most of the other categories are Pioneers and their growth potential will be determined in the coming years.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Transportation Technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Insurance Technology Showing Early Signs of Maturation

Last quarter we saw that Insurance Technology (insurtech) funding continued on a healthy trend. This quarter we are going one level deeper on our insurtech research platform to examine its funding by round. From our analysis we can conclude that the insurtech sector is showing early signs of maturation.

This conclusion comes from two takeaways:

  • Funding amounts are showing variable innovation
  • Funding counts are shifting to mid-stage events

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

To help set the stage, the graphic below illustrates insurtech funding events over time. As you can see, the sector’s funding events saw consistent growth year over year.

Insurance Technology Funding Count by Quarter
Insurance Technology Funding Count by Quarter

Insurtech Funding Amounts Showing Variable Innovation

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

Insurance Technology Funding Amount by Round
Insurance Technology Funding Amount by Round

Insurtech funding peaked in 2015, and has recovered slightly since. From this graph it’s clear that total insurtech funding for these rounds is up over the past 5 years.

Let’s look at the insurtech funding amount by round as a percentage, which shows changes independent of the total size.

Insurance Technology Funding Amount Percentages
Insurance Technology Funding Amount Percentages

As we can see, there is some rather noisy turbulence within insurtech funding over the past few years. Each funding stage took turns experiencing ups and downs.

These two graphics show that the insurtech funding amounts are shifting all over the place without any clear trends. Therefore we can conclude that there is variable innovation within the sector.

So we have seen the funding amounts graphs indicate variable innovation. Would the funding event count graphs show the same picture? Let’s examine them in the next section to find out.

Insurtech Funding Counts Shifting to Mid-Stage Events

Let’s now look at the annual insurtech funding event counts. The below graph shows the insurtech funding counts in different rounds over recent years.

Insurance Technology Funding Count by Round
Insurance Technology Funding Count by Round

The above graph shows that insurtech funding counts in all rounds saw steady growth from 2012 to 2017. This corresponds with the general upward trend seen in the insurtech funding amounts graph.

Let’s now look at the insurtech funding count by round as a percentage, which can show shifts more clearly.

Insurance Technology Funding Count Percentages
Insurance Technology Funding Count Percentages

This graph shows that from 2012-2017, the Seed round funding count percentage dropped. To compensate for that decrease, the funding count percentages for Series B and Series C increased.

Specifically, the Seed round funding count dropped from 65% to 55% from 2012 to 2017. In contrast, the Series B funding count increased from 5% to 11%. The Series C funding count increased from 2% to 7%. The changes in all the other rounds were small enough to be negligible.

Combining these two graphics, we can see that insurtech funding counts shifted slightly from the Seed round to mid-stage from 2012 to 2017.

Conclusion: The Insurtech Sector Is Starting to Mature Slightly

In conclusion, we see that insurtech funding amounts are showing variable innovation in all directions. Meanwhile, insurtech funding counts saw an increase in mid-stage events. These observations led us to conclude that the insurtech sector is showing early signs of maturation. Overall funding counts continue to show growth, but investors are finding more mid-stage companies to bet on.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Insurance Technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.