Tracxn Research — Artificial Intelligence Startup Landscape, September 2016

Artificial Intelligence Report, September 2016
Tracxn
World’s Largest Startup Research Platform
2

Contents
Topic Page No.
Scope of Report 05
Entrepreneur Activity 07
Investment Trend 10
Who is Investing 25
Exit Outlook - IPO, Acquisitions 32
Sub Sector Analysis 36
Interesting Companies 63
Useful Links 90
Company List 92
Team 368
3
3

Illustrative Sectors We Track
ENTERPRISE
INFRASTRUCTURE
ENTERPRISE
APPLICATIONS
MOBILETECHNOLOGY
CONSUMER FINTECH EDUCATION HEALTHCARE
SECURITY
STORAGE
NETWORKING
MOBILITY
IT OPS
CLOUD INFRASTRUCTURE
API MANAGEMENT
BIGDATA INFRASTRUCTURE
SAAS
MOBILE-FIRST ENT. APPS
INTELLIGENT ENT. APPS
OPEN SOURCE
RETAIL TECH
MARKETING TECH
STEALTH MODE
VERTICAL SAAS
MOBILE COMMERCE
MOBILE PAYMENTS
MOBILE MARKETING
MOBILE DEV TOOLS
MOBILE HEALTH
MOBILE GAMING
MOBILE LEARNING
MOBILE COMMUNICATION
ARTIFICIAL INTELLIGENCE
VIRTUAL REALITY
CONSUMER ROBOTICS
WEARABLE TECHNOLOGY
INTERNET OF THINGS
DRONES
SMART CARS
3D PRINTING
FOOD TECH
SECOND HAND GOODS
BITCOIN
PAYMENTS
EDUCATION IT
SELF LEARNING
LIFE SCIENCES
DIGITAL HEALTH

Sector Overview
Scope of report
This report aims to provide a brief overview of the startup landscape of the Artificial Intelligence sector. The sector has been divided into two
major sub-sectors, namely Infrastructure and Applications:
• Infrastructure: Includes companies which provide AI as a Service, NLP as a Service, Computer Vision as a Service. These companies provide
cloud infrastructure, algorithms, libraries for creating AI based applications
• Applications: Includes companies leveraging AI techniques to build applications tailored for end use in Enterprise, Industry & Consumer
sectors.
The report excludes not for profit companies developing AI techniques or using them to build applications like Open AI
Over $1.2B has been invested in AI-Infrastructure startups since 2010 with ~$540M being invested in 2015-16. Over $8.5B has been invested in AI-
Applications startups since 2010 with over ~$3.5B being invested in 2015-16.
Some notable investments in 2016
• Cylance (Enterprise – Security & Surveillance) - $100M, Series D from Blackstone Tactical Opportunities, Insight Venture Partners and others –
Jun 08, 2016.
• Digital Reasoning (Enterprise – Business Intelligence) - $40M, Series D from Lemhi Ventures, Nasdaq, Goldman Sachs and others – May 03,
2016
• Persado (Enterprise – Marketing) - $30M, Series C from Goldman Sachs, Bain Capital Ventures and others – Apr 05, 2016.
• Globality (Stealth) - $27M, Series B from Al Gore, Ron Johnson, John Joyce, Michael Marks and Ken Goldman – Apr 07, 2016.
• Zimperium (Enterprise – Security & Surveillance) - $25M, Series C from Warburg Pincus, Sierra Ventures, Telstra Ventures and Lazarus Israel
Opportunities Fund LLLP – Jun 07, 2016
• X.ai (Consumer – Virtual Assistants) - $23M, Series B Two Sigma Ventures, SoftBank and others – Apr 07, 2016.
• Zoox (Industry – Transport) - $200M, Series A from AID Partners – May 23, 2016
The scope of this report includes equity as well as debt funding received by the companies.

Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Interesting Companies
Useful Links
Company List
Team
6
6

23
18
43
33
58
48
4
0
14
28
42
56
70
2010 2011 2012 2013 2014 2015 2016 YTD
NumberofCompanies
7
Infrastructure – YoY – Number of companies
founded
Vicarious Face++ Mobvoi Dato Nervana Systems Demiurge InterAction.AI
WorkFusion MindMeld Trifacta Clarifai Semantic Machines Twenty Billion Neurons SuperCortical

Applications – YoY – Number of companies
founded

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
Useful Links
Company List
Team
9
9

Infrastructure – YoY – Number of Rounds and
Total Funding
$137M
$20M
$61M $53M
$133M
$112M
$389M
$348M
$192M
9
4
18
28
43
41
59
55
28
0
14
28
42
56
70
0
90
180
270
360
450
2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD
NumberofRounds
FundingAmount(inMillions)
Funding Amount Number of Rounds
Note: The funding includes debt rounds also.

Applications – YoY – Number of Rounds and Total
Funding

Infrastructure – YoY – Number of Rounds by Stage

Applications – YoY – Number of Rounds by Stage

Infrastructure – YoY – Funding by Stage

Applications – YoY – Funding by Stage

Infrastructure – Average Ticket Size – Early Stage

Applications – Average Ticket Size – Early Stage

Infrastructure – Top investments in last one year

Applications – Top investments in last one year

Infrastructure – Funnel view of Sector

Applications – Funnel view of Sector

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
Useful Links
Company List
Team
4
24

Infrastructure – Most Active Investors in Sector
10
8
6 6 6
5 5 5 5
4
0
2
5
7
10
12
NEA Intel Capital Accel Partners GV Horizons
Ventures
AIB Seed Capital
Fund
Capital-E
Partners
Greylock
Partners
Khosla Ventures 406 Ventures
TotalNumberofCompanies
DataRobot DataRobot Trifacta Tamr Cortica Movidius Movidius MindMeld MetaMind Connotate
Dato MindMeld Paxata Clarifai Affectiva Trifacta Kaggle Nara Logics

Infrastructure – Where are Top Investors
investing

Infrastructure – Top Investor by Stage of Entry

Applications – Most Active Investors in Sector
23
21
20
19
18
17
16 16 16
15
0
5
10
15
20
25
Khosla Ventures Y Combinator Sequoia Capital Accel Partners NEA IA Venttures Andreessen
Horowitz
First Round
Capital
Founders Fund Bain Capital
Ventures
TotalNumberofCompanies
Blue River Tech Sift Science Kahuna Kensho BloomReach Vectra Networks Anki Knewton Palantir BloomReach
Judicata Cruise Automation EverString Knewton Kensho DataSift Premise The Climate Corporation Knewton Captora

Applications – Where are Top Investors investing

Applications – Top Investor by Stage of Entry

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
Useful Links
Company List
Team
1
31

Infrastructure – Major Acquisitions in last three
years
Date Company Acquirer Deal Size Overview
Total
Funding
Oct-2015 saffrontech.com
Saffron Tech
(Cary, 1999)
intel.com Undisclosed
Platform for Cognitive Computing
$7.54M
Aug-2015 saplo.com
Saplo
(Malmo, 2008)
sprinklecontent.com Undisclosed
Text Analytics
$500k
Apr-2014 novauris.com
NovaurisASR
(Bishops Cleeve, 2002)
apple.com Undisclosed
Speech recognition software technology for mobile
Jan-2014 deepmind.com
DeepMind
(London, 2011)
google.com $659M
Deep learning AI
Horizons Ventures, TrueBridge Capital Partners, Darwin
Ventures
Jul-2013 cognition.com
Cognition
(Culver City, 2003)
nuance.com Undisclosed
NLP for Semantic Analytics
Siemer Ventures, Draper and Associates, Fingerhut,
Wavemaker Partners, Sante Fe Capital Group
$2.9M

Applications – Major Acquisitions in last three
years

Applications – Top IPOs in last three years

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
Useful Links
Company List
Team
5
35

September 2016Tracxn BlueBox : Artificial Intelligence
1300+ companies tracked, $8.1B invested in last 5 years, ~$4.1B invested in 2015/16

Infrastructure
Companies which provide AI as a Service, NLP as a
Service, Computer Vision as a Service. These companies
provide cloud infrastructure, algorithms, libraries for
creating AI based applications
37

Infrastructure – Top Business Models by Funding
$455M
$440M
$385M
$219M
0
100
200
300
400
500
Machine Intelligence Systems Enabling Technologies NLP Visual Recognition
TotalFundingAmount(inMillions)
# Cos. 82 42 118 76
Avg. Age 2010.8 2008.1 2010.1 2011.5
Sentient.ai Attivio SpinVox Face++
Vicarious Movidius Mobvoi Cortica

Machine Intelligence Systems – Business Model
Description

Machine Intelligence Systems – Entrepreneur
Activity and Investment Trend

Machine Intelligence Systems – Most Funded
Companies

Enabling Technologies – Business Model
Description

Enabling Technologies – Entrepreneur Activity
and Investment Trend

Enabling Technologies – Most Funded Companies

NLP – Business Model Description

NLP – Entrepreneur Activity and Investment
Trend

NLP – Most Funded Companies

Visual Recognition – Business Model Description
48

Visual Recognition – Entrepreneur Activity and
Investment Trend

Visual Recognition – Most Funded Companies

Applications
Includes companies developing applications based on
artificial intelligence technologies for different verticals
51

Applications – Top Business Models by Funding
$6.0B
$3.0B
$472M
0
1400
2800
4200
5600
7000
Enterprise Industry Consumer
TotalFundingAmount(inMillions)
# Cos. 358 447 122
Avg. Age 2011.5 2012.1 2012.2
Palantir Mobileye Anki
InsideSales.com Knewton Jibo

Enterprise – Business Model Description

Enterprise – Entrepreneur Activity and
Investment Trend

Enterprise – Most Funded Companies

Industry – Business Model Description

Industry – Entrepreneur Activity and Investment
Trend

Industry – Most Funded Companies

Consumer – Business Model Description

Consumer – Entrepreneur Activity and Investment
Trend

Consumer – Most Funded Companies

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
Useful Links
Company List
Team
2
62

Infrastructure – Interesting Unfunded Companies
Company Overview Business Model
ntechlab.com
N-Tech Labs
(2015, Moscow)
AI platform for facial recognition
Visual Recognition > Facial Recognition
cogniac.co
Cogniac
(2015, San Jose)
Computer vision based solutions for enterprises
Visual Recognition
vidrovr.com
VidRovr
(2016, New York City)
Video content management and recommendation Visual Recognition > Object Recognition Platforms
> Video Analytics Platforms
geometricintelligence.com
Geometric Intelligence
(2015, New York City)
Artificial General Intelligence
Machine Intelligence Systems > Cognitive Learning
teradeep.com
TeraDeep
(2014, Santa Clara)
Deep Learning Hardware & Software for Applications
Enabling Technologies > Hardware
knowm.org
Knowm
(2015, Santa Fe)
Builds hardware for AI algorithms
Enabling Technologies > Hardware
liv.ai
Liv.ai
(2014, Bangalore)
AI based natural language processor - Stealth mode
NLP > Text and Speech Analytics
sighthound.com
Sighthound
(2012, Menlo Park)
Video surveillance using computer vision
Visual Recognition > Object Recognition Platforms
Curated list of companies by the sector analyst are defined as Interesting

Infrastructure – Interesting Unfunded Companies

Infrastructure – Interesting Seed Companies

Infrastructure – Interesting Series A Companies

Infrastructure – Interesting Series B Companies

Infrastructure – Interesting Late Stage Companies

Infrastructure – Top Funded Deadpooled
Companies

Applications – Interesting Unfunded Companies

Applications – Interesting Seed Companies

Applications – Interesting Series A Companies

Applications – Interesting Series B Companies

Applications – Interesting Late Stage Companies

Applications – Top Funded Deadpooled
Companies

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
Useful Links
Company List
Team
9
89

Useful Links
Slide Title Content Platform Link
List of All Companies in readable format Companies Link
Large Upcoming Sectors Entrepreneur Activity Link
Top investments in last one year Investment Trend Link
Top IPOs in last three years Exit Outlook - IPO, Acquisitions Link
Major Acquisitions in last one year Exit Outlook - IPO, Acquisitions Link
Infrastructure – Most Funded Companies Sub Sector Understand Link
Applications – Most Funded companies Sub Sector Understand Link
Top Funded Deadpooled Companies Companies Link

Scope of Report
Investment Trend
Who is Investing
Sub Sector Analysis
Useful Links
Company List
Team
1
91

Artificial Intelligence – Company List
1200+ Companies tracked
(737 FUNDED AND 539 UNFUNDED COMPANIES)
COVERS THE FOLLOWING SECTORS
Infrastructure –
Machine Intelligence
Systems
Infrastructure –
NLP
Infrastructure –
Visual Recognition
Infrastructure –
Enabling Technologies
Applications –
Enterprise
Applications –
Industry
Applications
– Consumer

Infrastructure - Machine Intelligence Systems
(1/18)
Infrastructure – Machine
Intelligence Systems
Infrastructure – NLP
Infrastructure –
Visual Recognition
Infrastructure – Enabling
Technologies
Applications –
Enterprise
Applications – Industry
Applications –
Consumer
Company Details Funding Investors
Cognitive Learning
Vicarious [San Francisco, 2010]: Vicarious is working towards machine intelligence software that is based on
neocortex based learning. It is working towards a unified general intelligence software which can demonstrate
intelligence in vision, language, and motor control. Vicarious develops techniques which require limited supervision
and a few training examples. At a tech demo in Oct. 2013 Vicarious announced its AI was reliably able to solve modern
CAPTCHAs, with character recognition rates of 90% or better. Significant individual investors include : Dustin
Moskovitz, Peter Thiel, Vinod Khosla, Elon Musk, Sam Altman, Mark Zuckerberg and Ashton Kutcher.
$72M
Samsung, Khosla Ventures, Wipro,
ABB Group, AME Cloud Ventures,
Founders Fund, Felicis, Data
Collective, Bezos Expeditions,
Formation 8, Good Ventures, Open
Field Capital, zigfund.com
Cognitive Learning
Numenta [Redwood City, 2005]: Numenta's offers Machine Intelligence software on the Principles of the Neo Cortex.
One of its earliest product was the Grok, an IT analytics software which automatically learnt the changing patterns in
the individual servers and detected anomalies.Now the company is applying the same Neo Cortex based intelligence
to rogue behavior detection in humans, geospatial tracking, stock volume anomaly detection and a variety of text
analytics problems
$29.6M
Cognitive Learning
Demiurge [Zurich, 2015]: Demiurge is working on advanced neural network models which are highly efficient and
consume less computational power than existing neural network models. They are also developing/researching
neuromorphic chips and biomorphic robots , based on a theory they call Conscious Learning Network.
$9.5M
Cognitive Learning
Saffron Tech [Cary, 1999]: Safforn builds a cognitive computing platform, the natural intelligence platform, using
neuroscience and data science which incrementally learns and anticipates outcomes based on patterns it finds in the
data. The software is easy to integrate in the present environments and can be used across any business. Saffron has
partnerships with SAP, Rackspace, and departments at NCSU and UNC-Chapel Hill. Saffron works as a subsidiary of
Intel now.
$7.54M
Cognitive Learning
Nara Logics [Cambridge, 2010]: Nara Logics brain-like AI platform generates insights from and detects patterns within
data. Nara provides relevant recommendations, delivers personalization across channels. It provides a platform which
generate more insights into customer habits.
$6M 406 Ventures

(2/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer
Cognitive Learning
AGI Innovations Inc [Los Angeles, 2013]: AGI is developing intelligence engines based on artificial general intelligence
to help build intelligent application. Its current engine is being used to provide an IVR service through the company
founded by the same founder, Smart Action Company LLC. The primary focus is on natural language understanding
and learning and is also implementing spatial/temporal sense and actuator mechanisms for applications in robotics.
$4M
Cognitive Learning
Enkia [Atlanta, 1998]: Enkia provides artificial intelligence software for web applications. Its state-of-the-art
algorithms are based on cognitive science and machine learning research in human memory, data analysis, and
pattern discovery. These algorithms make sense of large amounts of web information, distilling it into trends and
patterns that can be used for decision making in enterprise and consumer applications. Enkia was spun out of Georgia
Tech via the Advanced Technology Development Center (ATDC) incubator. Enkia was acquired by Sentiment360 in
December, 2010.
$2.25M
Cognitive Learning
IBM [New York City, 1911]: IBM, acronym for International Business Machines, is a multinational computer
technology and consulting corporation. IBM's Watson is completely dedicated Cognitive Platform which can
understand natural language and extract insights from unstructured texts. They provide APIs and SDks for developers.
IBM acquired Lombardi BPM in 2009. It supports integrated analysis, simulation and testing. Unique 'Process Coach'
UIs guide users through complex runtime tasks. It enables developers to mix and match IBM products with software
from other companies. and spliced it with its existing BPM.As of today more than 350 companies and startups are
using Watson platform. IBM's Master Data Management (MDM) solutions provide a simple and trusted view of data.
IBM infosphere manages multiple domains of master data and reference data. According to Gartner, IBM's total
software revenue from MDM of customer data solutions in 2014 was $114.3 million. It also provides products like
urbancode for automated cloud deployment. It is home to 5 Nobel Laureates, 9 US National Medals of Technology, 5
US National Medals of Science, 6 Turing Awards, 10 Inductees in US Inventors Hall of Fame and counting. Also
provides IBM Cast Iron, a cloud based integration platform to integrate with Salesforce, SAP, Oracle ERP etc. IBM
provides Big Data Platform for Analytics.
Austin Ventures, Silverton Partners
Cognitive Learning
Cogitai [Orange County, 2015]: Cogitai is working on creating an AI system that can continuously learn from
experiences. They claim that their continual learning system is different from current machine / reinforcement
learning systems. The proposed system from Cogitai learns through by first learning lower skills before learning higher
skills through experience. Founders include Mark Ring, Peter Stone, and Satinder Singh Baveja. The core team consists
of various computer science professors from different US based educational institutions.
Sony

(3/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer
Cognitive Learning
SuperCortical [London, 2016]: Supercortical is currently working on an intelligent machine based on a proprietary
low-energy neural computing techniques and plans to develop this machine over the span of next 5 years.They are
currently developing algorithms for large scale language and image processing. Current use cases include social media
intelligence for Finance. As of Jun'16 the team is looking to raise funds from investors.
Cognitive Learning
Entropica [Boston, 2014]: Entropica is a open ended artificial intelligence platform which is modelled upon the laws of
thermodynamics. The software remembers the previous entropic states of a model and is able to predict the next
state.
Cognitive Learning
Maxima [Los Angeles, 2014]: Currently working towards a general intelligence platform. They are trying to implement
AGI by using a hierarchical reinforcement learning. Further details are not available as of Apr'16.
Cognitive Learning
Geometric Intelligence [New York City, 2015]: Geometric Intelligence is developing patent pending machine learning
techniques which would require less data to train and would still be able to display higher cognitive functions.
Cognitive Learning
Naoh [San Jose, ]: Naoh is a biologically inspired AI system which has brain-like computer that has broad applications
in personal assistant, expert system, self-driving, AI home servant. It can learn conceptual knowledge, understand
words, recognize patterns, draw pictures, and think. It does all intelligent tasks in the same manner as people do. It
can comprehend meanings behind words, so to understand word, to which today's AI systems are incapable of.

(4/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(5/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(6/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(7/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(8/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(9/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(10/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(11/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(12/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(13/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(14/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(15/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(16/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(17/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

(18/18)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer

Infrastructure - NLP (1/25)
Infrastructure –
Visual Recognition
Technologies
Applications –
Enterprise
Applications –
Consumer