Artificial Intelligence Landscape - Global and India

1. 1
World’s Largest Start-up Research Platform
In Collaboration With
India’s Only AI focussed Venture Fund
Artificial Intelligence Investment Landscape
Global and India Perspective
Aug 2016

2. Artificial Intelligence Evolution
2
No. of transistors per sq.
inch

3. Opportunity in AI
3
Artificial Intelligence is an umbrella term used for intelligent automation of mechanized as well as certain previously
human only tasks. Recent developments in algorithms, computational power, access to cheaper hardware and
enabling software, and the treasure trove of digital data have allowed AI to make significant progress in terms of the
tasks that were previously difficult to accomplish (such as Speech Recognition, Computer Vision etc.). These
technologies have enabled a new wave of enterprise software as well as industry specific solutions. Some of the key
areas for AI enabled Software are Business Intelligence, Marketing & Sales, Cyber Security. Some of the Industry
verticals where AI has made significant inroads are Healthcare, Automotive and Financial Services
Notable investments in 2016 - Global
• PatternX (Enterprise – Security & Surveillance) - $8M, Series A from Khosla Ventures – Jul 26, 2016.
• Takt (Enterprise – Customer Service) - $30M, Series A from BCG Digital Ventures and Starbucks – Jul 25, 2016.
• Sift Science (Industry – Financial Services) - $30M, Series C from Insight Venture Partners, Spark Capital, and
Union Square Ventures – Jul 19, 2016.
Notable investments in 2016 - India
• Netradyne (Industry – Automotive) - $16M, Series B from RIL– Jun 1, 2016.
• Niki.ai (Consumer – Virtual Assistants) - Undisclosed, Angel from Unilazer Ventures– May 19, 2016.
• Locus.sh(Industry - Logistics) - $2.7M, Series A from Blume Ventures, BeeNext, Exfinity Ventures– May 09,
2016.
• Active.ai (Industry – Financial Services) - $500k, Seed from Kstart– May 04, 2016.
• Auro Robotics (Industry – Transport – Autonomous Vehicles) - $2M, Series A from Rothenberg Ventures, Motus
Ventures– Apr 27, 2016.

4. AI - Investment Landscape
4
June 2016Tracxn BlueBox : Artificial Intelligence
Cumulative funding in the sector
1000+ companies tracked, ~$8.0B invested in last 5 years, ~$3.5B invested in 2015/16
Most Active Investors: SV Angel, NEA, Khosla Ventures, Y Combinator, Bloomberg Beta
INFRASTRUCTURE
ENABLING TECHNOLOGIES
Nvidia (1993, IPO)
VISUAL RECOGNITION
Face++ (2011, $47M)
$1.5B
MACHINE INTELLIGENCE SYSTEMS
DEEP LEARNING
Sentient (2007, $144M)
MACHINE LEARNING
Data Robot(2012,$57M)
COGNITIVE SYSTEMS
IBM (1911, IPO)
NATURAL LANGUAGE PROCESSING
SPEECH RECOGNITION
Nuance (1992, IPO)
TEXT & SPEECH ANALYTICS
SpinVox (2003, Acq.)
$458M $370M $192M
$440M
APPLIEDAI
ENTERPRISE
BI & ANALYTICS
INDUSTRY
ADVERTISING
RocketFuel (2008, IPO)
PHARMA & HEALTHCARE
Butterfly Network (2011, $100M)
FINANCE
Zest Finance(2009, $112M)
$5.6B
SECURITY & SURVEILLANCE
Cybereason (2012, $89M)
TRANSPORT
Mobileeye (1999, IPO)
AGRICULTURE
The Climate Corp(2006, Acq.)
SALES
InsideSales (2004, $199M)
MARKETING
Attensity (2000, $105M)
CUSTOMER SERVICE
ClaraBridge (2006, $103M)
HUMAN RESOURCES
Bright Media(2011, $20M)
BUSINESS INTELLIGENCE
Palantir(2004,$2.01B)
ALTERNATE DATA INTELLIGENCE
Premise Data(2012,$66.5M)
SOCIAL MEDIA
INTELLIGENCE
Dataminr(2009,$180M)
EDUCATION
Knewton (2008, $157M)
LEGAL
Lex Machina(2009, Acq.)
$2.5B
APPLIEDAI
CONSUMER
VIRTUAL ASSISTANTS
INTELLIGENT ROBOTS
Anki(2010, $105M)
PRODUCTIVITY
X.ai(2014,$34.3M)
HEALTH & MEDICAL
Your.md(2013,$7.3M)
GENERAL PURPOSE
Siri(2007,Acq.)
$448M
$8.5B
RECOMMENDER
Luka.ai(2014, $4.5M)
Practice Area – Technology Global | Analyst: Vijaya Bhaskara Rao

5. AI - Investment Landscape
5
June 2016Tracxn BlueBox : Artificial Intelligence
Cumulative funding in the sector
1000+ companies tracked, $8.0B invested in last 5 years, ~$3.5B invested in 2015/16
Most Active Investors: SV Angel, NEA, Khosla Ventures, Y Combinator, Bloomberg Beta
INFRASTRUCTURE
ENABLING TECHNOLOGIES
Nvidia (1993, IPO)
VISUAL RECOGNITION
Face++ (2011, $47M)
$1.5B
MACHINE INTELLIGENCE SYSTEMS
DEEP LEARNING
Sentient (2007, $144M)
MACHINE LEARNING
Data Robot(2012,$57M)
COGNITIVE SYSTEMS
IBM (1911, IPO)
NATURAL LANGUAGE PROCESSING
SPEECH RECOGNITION
Nuance (1992, IPO)
TEXT & SPEECH ANALYTICS
SpinVox (2003, Acq.)
$458M $370M $192M
$440M
APPLIEDAI
ENTERPRISE
BI & ANALYTICS
INDUSTRY
ADVERTISING
RocketFuel (2008, IPO)
PHARMA & HEALTHCARE
Butterfly Network (2011, $100M)
FINANCE
Zest Finance(2009, $112M)
$5.6B
SECURITY & SURVEILLANCE
Cybereason (2012, $89M)
TRANSPORT
Mobileeye (1999, IPO)
AGRICULTURE
The Climate Corp(2006, Acq.)
SALES
InsideSales (2004, $199M)
MARKETING
Attensity (2000, $105M)
CUSTOMER SERVICE
ClaraBridge (2006, $103M)
HUMAN RESOURCES
Bright Media(2011, $20M)
BUSINESS INTELLIGENCE
Palantir(2004,$2.01B)
ALTERNATE DATA INTELLIGENCE
Premise Data(2012,$66.5M)
SOCIAL MEDIA
INTELLIGENCE
Dataminr(2009,$180M)
EDUCATION
Knewton (2008, $157M)
LEGAL
Lex Machina(2009, Acq.)
$2.5B
APPLIEDAI
CONSUMER
VIRTUAL ASSISTANTS
INTELLIGENT ROBOTS
Anki(2010, $105M)
PRODUCTIVITY
X.ai(2014,$34.3M)
HEALTH & MEDICAL
Your.md(2013,$7.3M)
GENERAL PURPOSE
Siri(2007,Acq.)
$448M
$8.5B
RECOMMENDER
Luka.ai(2014, $4.5M)
Practice Area – Technology Global | Analyst: Vijaya Bhaskara Rao
AI Infra -
$1.5B Investment Since 2010, only in 2015- $360 mn
Major Areas of investments are in Hardware Processing and
Intelligent Algorithms
Applied AI -
$8.5B Investments in Applied AI, $2.3bn - only in 2015.
Major Areas of Investment - Enterprise (Cyber Security,
Business Intelligence), Financial (Credit Scoring, Analytics)
Healthcare (Diagnostics, Virtual Assistants) and Transport
(Autonomous Vehicles)
AI Infra
15%
Applied AI
85%
Majority of
investments are in
Applied AI

6. AI - Investments Trends
6
YoY Funding Rounds vs. Total Funding
No.offundingrounds0
55
110
165
220
TotalFunding(In$Mn)
0
750
1500
2250
3000
Funding Year
2011 2012 2013 2014 2015 2016 YTD
Total Funding
Funding Round
83
205208
172
116
88
711
2652
2343
1565
669
511
88
116
172
208 205
83
Global India
• Globally, Total funding in the Artificial Intelligence sector has seen CAGR of 29.7% during the period 2011 – 2015.
• In 2016 as well, artificial intelligence sector has already seen a considerable interest in terms of funding.
• Palantir nearly garnered $1.5B of the funding in the AI space over the last 6 years. One of the few decacorns who have not gone for an IPO.
YoY Funding Rounds vs. Total Funding
No.offundingrounds
0
4
7
11
14
TotalFunding(In$Mn)
0
7.5
15
22.5
30
Funding Year
2011 2012 2013 2014 2015 2016YTD
Total Funding
Funding Rounds
12
13
5
2
0
2
20.6
10.1
1.1
00
11.5
2
0
2
5
13
12

7. Investment Trend in Applied AI : Sectors
7
No.offundingtransactions
0
18
35
53
70
TotalFunding(In$Millions)
0
6
11
17
22
Funding Year
2010 2011 2012 2013 2014 2015 2016
Total Funding
No. of funding transactions
32
58
64
54
27
12
19
8
21
17
15
8
10
4
19
12
27
54
64
58
32
Enterprise - Funding Distribution
4.0%
4.7%
10.7%
11.7%
13.5%
55.4%
BI & Analytics
Marketing
Security & Surveillance
Sales
Customer Service
Others
Industry - Funding Distribution
12.1%3.1%
6.1%
14.2%
18.0%
19.0%
27.6%
Transport
Pharma & Healthcare
Advertising
Financial Services
Agriculture
Retail & eCommerce
Others
Industry
No.offundingtransactions
0
15
30
45
60
TotalFunding(In$Millions)
0
175
350
525
700
Funding Year
2010 2011 2012 2013 2014 2015 2016
Total Funding
No. of funding transactions
32
53
56
49
25
13
17
202
365379
615
254
132112
17
13
25
49
56
53
32
Enterprise Software
No.offundingtransactions
0
23
45
68
90
TotalFunding(In$Millions)
0
500
1000
1500
2000
Funding Year
2010 2011 2012 2013 2014 2015 2016
Total Funding
No. of funding transactions
23
8484
71
48
41
22
267
1810
1507
747
276307214
22
41
48
71
84 84
23
Consumer- Funding Distribution
3.7%
5.9%
42.5%
47.9%
Intelligent Robots
Virtual Assistants
Recommender Systems
Search Engines
Consumer

8. Trend in Applied AI : Early Stage Dominates
8
74% deals are Early
Stage or Series A,
making it right time to
enter AI
Deals per year in AI are
showing rising trend
YoY Funding Rounds vs. Total Funding
No.offundingrounds
0
55
110
165
220
TotalFunding(In$Mn)
0
750
1500
2250
3000
Funding Year
2011 2012 2013 2014 2015 2016 YTD
Total Funding
Funding Round
83
205208
172
116
88
711
2652
2343
1565
669
511
88
116
172
208 205
83
Core AI Infrastructure
#ofRounds
0
13
25
38
50
2011 2012 2013 2014 2015 2016 YTD
Seed Early Late
Applied AI
#ofRounds
0
50
100
150
200
2011 2012 2013 2014 2015 2016 YTD
Seed Early Late

9. Enterprise
Cylance
Ayasdi
Vectra
Networks
Natero
msg.ai
Gradberry
EverString
Lattice
Mintigo
Vectra
Networks
RelateIQ
BloomReach
Captora
Lattice
Vectra
Networks
DataSift
Recorded
Future
Premise
Infer
Adatao
Aviso
Troops
Pattern
Palantir
Quid
Topsy
BloomReach
Captora
Persado
Industry
Blue River
Tech
Judicata
The Climate
Corporation
Sift Science
Cruise
Automation
Mattermark
Kahuna
Appier
Kensho
Knewton
Prismatic
Kensho
The Climate
Corporation
DataVisor
SIGNIFYD
SIGNIFYD
Prism
Skylabs
Silver Tail
Systems
Knewton
The Climate
Corporation
Sift Science
Knewton
The Climate
Corporation
Quantcast
MEMENTO
Consumer Jetpac Luka SwiftKey x.ai
Anki
Swell Radio
Fountain Powerset
Khosla
Ventures
Y Combinator
Sequoia
Capital
Accel Partners NEA IA Venttures
Andreessen
Horowitz
First Round
Capital
Founders Fund
Bain Capital
Ventures
Who is investing and Where - Top Investors
9
Applied AI
Core AI Infrastructure
Machine
Intelligence
Systems
DataRobot
Dato
DataRobot
Uprizer Labs
MetaMind Nara Logics
Enabling
Technologies
Trifacta Tamr Movidius Movidius Connotate
NLP fido
MindMeld
Indisys
MindMeld
Visual
Recognition
HyperVerge
Matroid
Emotient Clarifai
Cortica
Affectiva
NEA Intel Capital
Accel
Partners
GV
Horizons
Ventures
AIB Seed
Capital
Fund
Capital-E
Partners
Greylock
Partners
Khosla
Ventures
406
Ventures
Applied AI has
seen a greater
number of
investments from
both sector
agnostic as well
sector specific
institutional VCs.
Core AI has
comparatively
seen investments
on the lesser side.

10. AI Global Exits : M&A and IPO Trends
10
• Out of 1400+ companies tracked, 132 companies have been acquired
• Acquisitions have been increasing significantly since 2013.
• The first 2 quarters of 2016 has seen significantly increased acquisition activity with Technology Goliath's like
Apple, Google and Salesforce leading the way.
Acquisitions by Geography
6%
2%
3%
3%
8%
78%
United States
United Kingdom
India
France
Canada
Others
Company Name Year Business Model Acquired By
ZoyoAI 28-Oct-15 Applied AI – Consumer – Virtual Assistants MagicX
Imagna Analytics 29-Oct-15 Applied AI - Enterprise - Marketing Fractal Analytics
Shifu 04-Jan-16 Applied AI - Consumer - Recommender Systems Paytm
Airwoot 14-Apr-16 Applied AI – Enterprise – Customer Service Freshdesk
Targeting Mantra 05-May-16 Applied AI - Enterprise - Marketing Snapdeal
Indian – Recent Acquisitions
YoY - No of Acquisitions
NofAcquisitions
0
10
20
30
40
Year
2011 2012 2013 2014 2015 2016 YTD
21
34
23
16
9
6

11. 11
Company Name Year Business Model Acquired By
Moodstocks 06-Jul-16 Infrastructure - Visual Recognition Google
Meekan 04-Jul-16
Applied AI - Consumer - Virtual
Assistants Doodle
Magic Pony
Technology 20-Jun-16 Infrastructure - Visual Recognition Twitter
Itseez 26-May-16
Applied AI - Industry - Transport -
Autonomous Vehicles Intel
Nuiku 24-May-16 Applied AI - Enterprise - Sales Nortek
Spiderbook 24-May-16 Applied AI - Enterprise - Sales Demandbase
Expertmaker 05-May-16
Applied AI - Industry - Retail &
eCommerce E Bay
Pathful 18-Apr-16 Applied AI - Enterprise – Marketing Mobify
Airwoot 14-Apr-16
Applied AI - Enterprise - Customer
Service FreshDesk
Metamind 04-Apr-16
Infrastructure - Machine Intelligence
Systems Salesforce
Recent Major Acquisitions
Company
No. Of
Acquisitions
Google 13
Apple 7
Nuance 7
Twitter 6
Salesforce 5
Yahoo 5
Intel 4
Major Acquirers
Company Name IPO Date Business Model
Mobileye 31-Jul-14
Applied AI - Industry - Transport - Autonomous
Vehicles - Technology Providers
Recent Major IPOs
11
Business Model
No. Of
Acquisitions
Infrastructure – Natural
Language Processing
15
Infrastructure – Visual
Recognition
13
Applied AI – Consumer
– Virtual Assistants
10
Applied AI – Enterprise -
Marketing
10
Infrastructure – Machine
Intelligence Systems
9
Business Model wise Acquisition trends
AI Global Exits : M&A and IPO Trends

12. Exit Trend in Applied AI
Within 4 years & under $20M in Investment
12
Most exits are through
M&A because of
Corporates
Most exits happen within
4 years and with less than
$ 20mn investment
AI has the highest
probability of exits
Source: CB Insights

13. Early Days in India : Examples
13
Early Exits Investments
Acquired by PayTM ($8mn), Shifu mines
the smartphone usage patterns of users
and makes personalised recommendations
to them.
Acquired by Snapdeal( $ Undisclosed),
Reduce Data’s focus is to assist brands
and advertisers through leveraging artificial
intelligence, real-time data and other tools.
Acquired by Snapdeal( $ Undisclosed),
TargetingMantra provides a unified
platform to manage customer life cycle
through personalisation, targeting and big
data analytics.
Acquired by Practo ($40mn), Qikwell used
constrained based algorithm that balances
the yield for the doctor and also reduces
the patient time.
MAD ($1.5mn) gaze tracking, emotion-expression
detection, head and facial gestures for increasing
consumer engagement Investors, Exinfinity & GrowX
Niki.ai allows you to order services through AI driven
conversational chatbot, which range from cab
booking to laundry and recharges. Investors, Unilazer
Arya.ai provides developer platform for businesses to
quickly add AI capabilities to their enterprise
software. Investors, Your nest Angel fund,
Sigtuple, builds products for automated analysis of
medical images and data, to aid diagnosis. Investors,
Sachin, Binny Bansal, Accel Venture Partners
Mezi ($9mn), is a personal shopping and travel
assistant. Investors, Nexus Venture Partners, Sama
Capital
Netradyne ($16mn), NetraDyne is a deep learning
company that focuses on computer vision in
automobiles and drones. Investors, Reliance
Investors Limited
LOCUS ($2.75mn) provides Delivery automation
solutions for on-demand businesses. Investors, Blume
Ventures, BeeNext, Exfinity Ventures.

14. Next Unicorns will be driven by Applied AI
14
Core AI Building
Blocks
Heavy R&D Spend to solve
core problems, ex. NLP,
Image recognition,
Deep Learning,
Speech recognition,
Emotions
Rise of Applied AI
Startups that leverage
core AI frameworks to
create business value
New Category
Leaders
Mature Applied AI,
with new leaders and
consolidation by
incumbents/laggards
*R&D by large Companies pi Ventures
Business Value
1990 2016 2020
We are here
Seed VC
Investments
Growth
Investments
Inflection
Point
This is the perfect time to do Early Stage
Investments in Applied AI.
Near Inflection Point, new category leaders will be
available at very high valuations only!*Source : Bootstrap Labs

15. Summary
15
Most of the deals are early stage or at Series A. Globally, because of
disruptive nature of AI startups are seeing early exits (less than 4 years)
and with lower amount of investments (<$20mn).
It is the right time to start focusing on AI in India story, as early investment
and exits are starting to take place and early set of talent is focusing on
attacking Applied AI themes.
“AI winter” is turning into “AI Spring”, as Deep Learning revolutionises the
AI field by massively increasing the accuracy levels in text, speech and
image recognition. This is making AI practicable for business problems
now.
Applied AI is attracting the most amount of investment ($8.5B). In Applied
AI, Enterprise (BI & Analytics), Transport & Healthcare, Transport
(Automotive and Others) lead the trend.

16. References
16
https://www.cbinsights.com/blog/artificial-intelligence-mergers-
acquisitions-exits/
http://insights.venturescanner.com/category/artificial-intelligence-2/
http://www.slideshare.net/BootstrapLabs/bootstraplabs-tracxn-report-
artificial-intelligence-for-the-applied-artificial-intelligence-
conference-2016

17. Thank You!
17
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