a deep dive in ai and ml

A Deep Dive in the Venture Landscape of Artificial Intelligence and Machine Learning

Ajit Nazre amp Rahul Garg

Artificial Intelligence (AI) has been around since the term was coined in 1955 by John McCarthy AI is on

its third life after the first one ending in the 70s when funding from US federal sources dried up and the

second one ending after the crash of the LISP machine market It appears that in its third reincarnation

that started in the 90s AI is here to stay for the long run The field of AI has expanded to various fields

as shown in the classification (chart 1)

Thanks to advances in computing networks storage big data and neuroscience AI is getting more

accurate in prediction Its applications are ubiquitous in both consumer and industrial settings We use it

daily on our smart phone in the form of automatic word completion in the text editor and face

recognition to log on It is seen in toy drones home help robots and self-parking cars Industrial

applications are common place from aerospace and agriculture to recruiting and wealth-management

The US has become the hotbed of innovation in AI and has captured a leadership position in terms of

university research patents startups funded commercial and military use In 2014 IBM and Microsoft

had more patents granted in AI and ML in 2014 than all other tech companies (chart 2)

Chart 1 Classification of AI

In order to better understand which areas within AI are seeing most disruption we created a database of

2800 companies that are innovating in all the areas (as shown in chart 1)of AI and ML (machine

learning) For the study we also included areas that span multiple fields such as drones image

recognition and augmented reality We winnowed the 2800 companies down to 1781 active companies

depending on whether they were acquired closed down or went bankrupt More than half of the active

1781 companies are located in the US (chart 3)

Chart 2 Patents Granted in 2014 by USPTO

Chart 3 Active AI Companies by Country 2015

We further narrowed the list of companies based on who had received funding Only 18 (312

companies) of the 1781 active companies have funding gt$100k Out of the 312 funded companies

nearly 40 are located in the San Francisco Bay area with more than 70 in North America (chart 4)

A vast majority of the funded companies are still pre series A or in other words in early stages of

development (chart 5)

Chart 4 Funded Companies by Location

Chart 5 Funded Companies by stage of Funding

Venture funding in AI ML companies increased 300 in 2014 as compared to 2013 (chart 6)

Intel Capital Google Ventures Khosla Ventures and Two Sigma Ventures are the most active VCs

investing in the area (chart 7)

Chart 6 Venture Funding in AI and ML over time

Chart 7 Most Active Venture Firms in AI and ML

Machine learning drones robotics augmented reality and image recognition are the most actively

funded areas (chart 8)

70 of AI and ML innovation is targeted toward enterprise applications (chart 9) across a wide range of

industries from Aerospace to Wealth management (chart 10)Surprisingly ldquoAI ML as a servicerdquo is the

second most prevalent application area after industrial automation

Chart 8 Funded Companies in AI ML by Field of Innovation

Chart 9 Funded Companies by Application Focus

Acquisitions are also happening at a brisk pace and Google is the most acquisitive tech company in the

space (21 acquisitions) followed by Facebook (10) and Apple (6) (chart 11)

Chart 10 Funded Companies in AI ML by Application Vertical

Chart 11 Acquisition Activity in AI ML

There is a lot of literature and press covering various uses of AI and ML We have compiled a list of

companies that we thought stood out in the following verticals

Aerospace Atheer Labs Augmate Infinity AR Total Immersion Vuzix

Agriculture Blue River Farmlogs Greensight Mavrx Pulsepod Terravion

Background Checks Onfido

Communications Lexifone

Customer Care Agnitio DigitalGenius Expect Labs Verbio Voicebase Voiceitt VoiceVault

Healthcare Atheer Labs Augmedix Infinity AR

Media Cognitive Networks Datascription Dextro Enswers Magic Pony Technology Persado Utelly Videntifier Technologies

Navigation Mapillary Nuviz Wayray

Office Productivity Assistantto Gridspace Idibon Robin Labs Thoughtly Xai Zahdoo

Oil amp Gas Tractable

Recruiting Connectifier Pymetrics Talentoday

Wealth Management Betterment Estimize Narrative Science Personal Capital Sigfig Wealthfront

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In order to better understand which areas within AI are seeing most disruption we created a database of

2800 companies that are innovating in all the areas (as shown in chart 1)of AI and ML (machine

learning) For the study we also included areas that span multiple fields such as drones image

recognition and augmented reality We winnowed the 2800 companies down to 1781 active companies

depending on whether they were acquired closed down or went bankrupt More than half of the active

1781 companies are located in the US (chart 3)

Chart 2 Patents Granted in 2014 by USPTO

Chart 3 Active AI Companies by Country 2015










































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Ajit Nazre on wix



Ajit Nazre on Blog



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a deep dive in ai and ml

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