Artificial Intelligence Investor Activity Is On A Robust Upward Trend

How has investor appetite in artificial intelligence evolved throughout the years? In this blog post we examine the total investments by year into this sector to help answer that question. The graph below shows the total number of investors in all deals stacked by quarters.

Artificial Intelligence Investors Over Time
Artificial Intelligence Investors Over Time

As the graphic demonstrates, investor activity in AI has dipped slightly after reaching a record high. The 5-Year CAGR of AI investor activity from 2013 to 2018 is 31%. In addition, the sector has seen a total of 1,003 investors in all deals through Q2 of this year. This represents 50% of the total investor activity in 2018, and 91% of the investor activity through Q2 in 2018. Taking all these data points together, we can see that investor appetite for AI deals is on a generally upward trend in recent years.

To learn more about our complete artificial intelligence dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Artificial Intelligence Report Highlights – Q2 2019

Here is our Q2 2019 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 dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Machine Learning Categories Lead AI Funding

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
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 than the next category, Speech Recognition.

So we’ve witnessed how different AI categories stack up in their Q2 funding. But how do these categories’ funding compare with each other historically? Let’s investigate that in the next section.

Machine Learning Applications Dominates AI in All-Time Funding

The graph below shows the all-time funding for different AI categories. The quarterly funding and growth rates of these categories are also highlighted.

Artificial Intelligence Total Category Funding
Artificial Intelligence Total Category Funding

The bar graph indicates Machine Learning Applications completely dominates the sector with $17B in total funding. This is more than twice the funding in the next category, Machine Learning Platforms.

In addition, the line graph demonstrates that Computer Vision Platforms saw the highest growth rate in Q2 at 48%.

Conclusion: Machine Learning Categories Are At the Forefront of AI Funding

In summary, we have analyzed the AI funding amounts in different categories. We’ve discovered that Machine Learning Platforms and Computer Vision Platforms lead the sector in Q2 funding. In addition, Machine Learning Applications dominates AI in all-time funding. It’ll be interesting to see if any other AI categories will catch up in the rest of 2018.

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.

Number of Investments by Top Artificial Intelligence Investors

The following infographic summarizes the number of companies invested by the top Artificial Intelligence investors. You could see that Intel Capital is in the lead by having invested in 16 companies, followed by Techstars which invested in 14 companies. At Venture Scanner, we are currently tracking over 897 Artificial Intelligence companies in 13 categories across 66 countries, with a total of $3.98 Billion in funding. To see the full list of 897 Artificial Intelligence companies, contact us using the form on www.venturescanner.com.

Artificial Intelligence investor count

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.

Artificial Intelligence At a Glance

The following infographic summarizes the Artificial Intelligence market and all of its key metrics at a glance. You could see that it has 13 categories, 910 companies, and an average funding of $10 Million per company. At Venture Scanner, we are currently tracking over 910 Artificial Intelligence companies in 13 categories across 63 countries, with a total of $3.68 Billion in funding. To see the full list of 910 Artificial Intelligence startups, contact us using the form on www.venturescanner.com.

Artificial Intelligence At a Glance
Artificial Intelligence At a Glance

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.

Artificial Intelligence Company Total Funding By Vintage Year

The following infographic summarizes Artificial Intelligence companies’ total funding by the vintage year they were founded in. You could see that Artificial Intelligence companies founded in 2007 and 2008 are in the lead by raising a total of $504 Million funding up to date. At Venture Scanner, we are currently tracking over 880 Artificial Intelligence companies in 13 categories across 62 countries, with a total of $3.07 Billion in funding. To see the full list of 880 Artificial Intelligence companies, contact us using the form on www.venturescanner.com.

Artificial Intelligence Vintage Year Graph
Artificial Intelligence Vintage Year Graph

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.

The State of Artificial Intelligence in Six Visuals

We cover many emerging markets in the startup ecosystem. Previously, we published posts that summarized Financial Technology, Internet of ThingsBitcoin, and MarTech in six visuals. This week, we do the same with Artificial Intelligence (AI). At this time, we are tracking 855 AI companies across 13 categories, with a combined funding amount of $8.75 billion. To see the full list of 855 Artificial Intelligence startups, contact us using the form on www.venturescanner.com.

The six Artificial Intelligence visuals below help make sense of this dynamic market:

  1. Market Overview: Breakdown of Artificial Intelligence startup list into categories.
  2. Number of Companies Per Category: Bar graph summarizing the number of companies in each Artificial Intelligence category.
  3. Average Funding By Category: Bar graph summarizing average company funding per Artificial Intelligence category.
  4. Venture Funding in Artificial Intelligence: Graph comparing total venture funding in Artificial Intelligence to the number of companies in each category.
  5. Global Breakdown of Artificial Intelligence: Heat map indicating where Artificial Intelligence companies exist.
  6. Median Age of Artificial Intelligence Categories: Bar graph of each Artificial Intelligence category by median age.

1. Artificial Intelligence Market Overview

ai1

Deep Learning/Machine Learning Applications: Machine learning is the technology of computer algorithms that operate based on its learnings from existing data. Deep learning is a subset of machine learning that focuses on deeply layered neural networks. The following companies utilize deep learning/machine learning technology in a specific way or use-case in their products.

Computer Vision/Image Recognition: Computer vision is the method of processing and analyzing images to understand and produce information from them. Image recognition is the process of scanning images to identify objects and faces. The following companies either build computer vision/image recognition technology or utilize it as the core offering in their products.

Deep Learning/Machine Learning (General): Machine learning is the technology of computer algorithms that operate based on its learning from existing data. Deep learning is a subset of machine learning that focuses on deeply layered neural networks. The following companies either build deep learning/machine learning technology or utilize it as the core offering of their products.

Natural Language Processing: Natural language processing is the method through which computers process human language input and convert into understandable representations to derive meaning from them. The following companies either build natural language processing technology or utilize it as the core offering in their products (excluding all speech recognition companies).

Smart Robots: Smart robot companies build robots that can learn from their experience and act and react autonomously based on the conditions of their environment.

Virtual Personal Assistants: Virtual personal assistants are software agents that use artificial intelligence to perform tasks and services for an individual, such as customer service, etc.

Natural Language Processing (Speech Recognition): Speech recognition is a subset of natural language processing that focuses on processing a sound clip of human speech and deriving meaning from it.

Computer Vision/Image Recognition: Computer vision is the method of processing and analyzing images to understand and produce information from them. Image recognition is the process of scanning images to identify objects and faces. The following companies utilize computer vision/image recognition technology in a specific way or use-case in their products.

Recommendation Engines and Collaborative Filtering: Recommendation engines are systems that predict the preferences and interests of users for certain items (movies, restaurants) and deliver personalized recommendations to them. Collaborative filtering is a method of predicting a user’s preferences and interests by collecting the preference information from many other similar users.

Gesture Control: Gesture control is the process through which humans interact and communicate with computers with their gestures, which are recognized and interpreted by the computers.

Video Automatic Content Recognition: Video automatic content recognition is the process through which the computer compares a sampling of video content with a source content file to identify what the content is through its unique characteristics.

Context Aware Computing: Context aware computing is the process through which computers become aware of their environment and their context of use, such as location, orientation, lighting and adapt their behavior accordingly.

Speech to Speech Translation: Speech to speech translation is the process through which human speech in one language is processed by the computer and translated into another language instantly.

2. Number of Companies Per Category

ai2

The bar graph above summarizes the number of companies in each Artificial Intelligence category to show which are dominating the current market. Currently, the “Deep Learning/Machine Learning Applications” category is leading the way with a total of 200 companies, followed by “Natural Language Processing (Speech Recognition)” with 130 companies.

3. Average Funding By Category

ai3

The bar graph above summarizes the average company funding per Artificial Intelligence category. Again, the “Deep Learning/Machine Learning Applications” category leads the way with an average of $13.8M per funded company. The SEM category includes companies that help marketers with managing and scaling their paid-search programs.

4. Venture Investing in Artificial Intelligence

ai4

The graph above compares total venture funding in Artificial Intelligence to the number of companies in each category. “Deep Learning/Machine Learning Applications” seems to be the category with the most traction.

5. Global Breakdown of Artificial Intelligence

ai5

The following infographic is an updated heat map indicating where Artificial Intelligence startups exist across 62 countries. Currently, the United States is leading the way with 415 companies. The United Kingdom is in second with 67 companies followed by Canada with 29.

6. Median Age of Artificial Intelligence Categories

ai6

The bar graph above summarizes Artificial Intelligence by median age of category. The “Speech Recognition” and “Video Content Recognition” categories have the highest median age at 8 years, followed by “Computer Vision (General)” at 6.5 years.

As Artificial Intelligence continues to develop, so too will its moving parts. We hope this post provides some big picture clarity on this booming industry.

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.