Tracxn Research — Artificial Intelligence Startup Landscape, September 2016

Artificial Intelligence Report, September 2016

TracxnWorld’s Largest Startup Research Platform

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

Illustrative Sectors We Track

ENTERPRISEINFRASTRUCTURE

ENTERPRISEAPPLICATIONS

MOBILETECHNOLOGY

CONSUMER FINTECH EDUCATION HEALTHCARE

SECURITY

STORAGE

NETWORKING

MOBILITY

IT OPS

CLOUD INFRASTRUCTURE

API MANAGEMENT

BIGDATA INFRASTRUCTURE

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 twomajor 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 providecloud infrastructure, algorithms, libraries for creating AI based applications

• Applications: Includes companies leveraging AI techniques to build applications tailored for end use in Enterprise, Industry & Consumersectors.

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 IsraelOpportunities 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

2010 2011 2012 2013 2014 2015 2016 YTD

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

Infrastructure – YoY – Number of Rounds and Total Funding

$61M $53M

$133M$112M

2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD

er of R

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

Infrastructure – Most Active Investors in Sector

5 5 5 5

NEA Intel Capital Accel Partners GV HorizonsVentures

AIB Seed CapitalFund

Capital-EPartners

GreylockPartners

Khosla Ventures 406 Ventures

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

1716 16 16

Khosla Ventures Y Combinator Sequoia Capital Accel Partners NEA IA Venttures AndreessenHorowitz

First RoundCapital

Founders Fund Bain CapitalVentures

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

Infrastructure – Major Acquisitions in last three years

Date Company Acquirer Deal Size OverviewTotal

Funding

Oct-2015 saffrontech.comSaffron Tech(Cary, 1999)

intel.com UndisclosedPlatform for Cognitive Computing

$7.54M

Aug-2015 saplo.comSaplo

(Malmo, 2008)sprinklecontent.com Undisclosed

Text Analytics$500k

Apr-2014 novauris.comNovaurisASR

(Bishops Cleeve, 2002)apple.com Undisclosed

Speech recognition software technology for mobile

Jan-2014 deepmind.comDeepMind

(London, 2011)google.com $659M

Deep learning AIHorizons Ventures, TrueBridge Capital Partners, Darwin Ventures

Jul-2013 cognition.comCognition

(Culver City, 2003)nuance.com Undisclosed

NLP for Semantic AnalyticsSiemer Ventures, Draper and Associates, Fingerhut, Wavemaker Partners, Sante Fe Capital Group

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

September 2016Tracxn BlueBox : Artificial Intelligence1300+ companies tracked, $8.1B invested in last 5 years, ~$4.1B invested in 2015/16

InfrastructureCompanies which provide AI as a Service, NLP as aService, Computer Vision as a Service. These companiesprovide cloud infrastructure, algorithms, libraries forcreating AI based applications

Infrastructure – Top Business Models by Funding

$455M$440M

Machine Intelligence Systems Enabling Technologies NLP Visual Recognition

# 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

Visual Recognition – Entrepreneur Activity and Investment Trend

Visual Recognition – Most Funded Companies

ApplicationsIncludes companies developing applications based onartificial intelligence technologies for different verticals

Applications – Top Business Models by Funding

Enterprise Industry Consumer

# 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

Infrastructure – Interesting Unfunded Companies

Company Overview Business Model

ntechlab.comN-Tech Labs

(2015, Moscow)

AI platform for facial recognitionVisual Recognition > Facial Recognition

cogniac.coCogniac

(2015, San Jose)

Computer vision based solutions for enterprisesVisual Recognition

vidrovr.comVidRovr

(2016, New York City)

Video content management and recommendation Visual Recognition > Object Recognition Platforms > Video Analytics Platforms

geometricintelligence.comGeometric Intelligence(2015, New York City)

Artificial General IntelligenceMachine Intelligence Systems > Cognitive Learning

teradeep.comTeraDeep

(2014, Santa Clara)

Deep Learning Hardware & Software for ApplicationsEnabling Technologies > Hardware

knowm.orgKnowm

(2015, Santa Fe)

Builds hardware for AI algorithmsEnabling Technologies > Hardware

liv.aiLiv.ai

(2014, Bangalore)

AI based natural language processor - Stealth modeNLP > Text and Speech Analytics

sighthound.comSighthound

(2012, Menlo Park)

Video surveillance using computer visionVisual 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 DeadpooledCompanies

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 DeadpooledCompanies

Scope of Report

Investment Trend

Who is Investing

Sub Sector Analysis

Useful Links

Company List

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

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 – NLPInfrastructure –

Visual RecognitionInfrastructure – Enabling

TechnologiesApplications –

EnterpriseApplications – Industry

Applications –Consumer

Company Details Funding Investors

Cognitive Learning

Vicarious [San Francisco, 2010]: Vicarious is working towards machine intelligence software that is based onneocortex based learning. It is working towards a unified general intelligence software which can demonstrateintelligence in vision, language, and motor control. Vicarious develops techniques which require limited supervisionand a few training examples. At a tech demo in Oct. 2013 Vicarious announced its AI was reliably able to solve modernCAPTCHAs, with character recognition rates of 90% or better. Significant individual investors include : DustinMoskovitz, Peter Thiel, Vinod Khosla, Elon Musk, Sam Altman, Mark Zuckerberg and Ashton Kutcher.

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 inthe individual servers and detected anomalies.Now the company is applying the same Neo Cortex based intelligenceto rogue behavior detection in humans, geospatial tracking, stock volume anomaly detection and a variety of textanalytics problems

$29.6M

Cognitive Learning

Demiurge [Zurich, 2015]: Demiurge is working on advanced neural network models which are highly efficient andconsume less computational power than existing neural network models. They are also developing/researchingneuromorphic chips and biomorphic robots , based on a theory they call Conscious Learning Network.

Cognitive Learning

Saffron Tech [Cary, 1999]: Safforn builds a cognitive computing platform, the natural intelligence platform, usingneuroscience and data science which incrementally learns and anticipates outcomes based on patterns it finds in thedata. The software is easy to integrate in the present environments and can be used across any business. Saffron haspartnerships with SAP, Rackspace, and departments at NCSU and UNC-Chapel Hill. Saffron works as a subsidiary ofIntel now.

$7.54M

Cognitive Learning

Nara Logics [Cambridge, 2010]: Nara Logics brain-like AI platform generates insights from and detects patterns withindata. Nara provides relevant recommendations, delivers personalization across channels. It provides a platform whichgenerate more insights into customer habits.

$6M 406 Ventures

Cognitive Learning

AGI Innovations Inc [Los Angeles, 2013]: AGI is developing intelligence engines based on artificial general intelligenceto help build intelligent application. Its current engine is being used to provide an IVR service through the companyfounded by the same founder, Smart Action Company LLC. The primary focus is on natural language understandingand learning and is also implementing spatial/temporal sense and actuator mechanisms for applications in robotics.

Cognitive Learning

Enkia [Atlanta, 1998]: Enkia provides artificial intelligence software for web applications. Its state-of-the-artalgorithms are based on cognitive science and machine learning research in human memory, data analysis, andpattern discovery. These algorithms make sense of large amounts of web information, distilling it into trends andpatterns that can be used for decision making in enterprise and consumer applications. Enkia was spun out of GeorgiaTech via the Advanced Technology Development Center (ATDC) incubator. Enkia was acquired by Sentiment360 inDecember, 2010.

$2.25M

Cognitive Learning

IBM [New York City, 1911]: IBM, acronym for International Business Machines, is a multinational computertechnology and consulting corporation. IBM's Watson is completely dedicated Cognitive Platform which canunderstand 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 softwarefrom other companies. and spliced it with its existing BPM.As of today more than 350 companies and startups areusing 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 totalsoftware revenue from MDM of customer data solutions in 2014 was $114.3 million. It also provides products likeurbancode for automated cloud deployment. It is home to 5 Nobel Laureates, 9 US National Medals of Technology, 5US National Medals of Science, 6 Turing Awards, 10 Inductees in US Inventors Hall of Fame and counting. Alsoprovides IBM Cast Iron, a cloud based integration platform to integrate with Salesforce, SAP, Oracle ERP etc. IBMprovides 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 fromexperiences. They claim that their continual learning system is different from current machine / reinforcementlearning systems. The proposed system from Cogitai learns through by first learning lower skills before learning higherskills through experience. Founders include Mark Ring, Peter Stone, and Satinder Singh Baveja. The core team consistsof various computer science professors from different US based educational institutions.

Cognitive Learning

SuperCortical [London, 2016]: Supercortical is currently working on an intelligent machine based on a proprietarylow-energy neural computing techniques and plans to develop this machine over the span of next 5 years.They arecurrently developing algorithms for large scale language and image processing. Current use cases include social mediaintelligence 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 ofthermodynamics. The software remembers the previous entropic states of a model and is able to predict the nextstate.

Cognitive Learning

Maxima [Los Angeles, 2014]: Currently working towards a general intelligence platform. They are trying to implementAGI 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 learningtechniques 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 applicationsin personal assistant, expert system, self-driving, AI home servant. It can learn conceptual knowledge, understandwords, recognize patterns, draw pictures, and think. It does all intelligent tasks in the same manner as people do. Itcan comprehend meanings behind words, so to understand word, to which today's AI systems are incapable of.

Infrastructure - NLP (1/25)

Infrastructure - Visual Recognition (1/16)

Infrastructure - Enabling Technologies (1/10)

Applications - Enterprise (1/81)

Applications - Industry (1/102)

Applications - Consumer (1/22)

Scope of Report

Investment Trend

Who is Investing

Sub Sector Analysis

Useful Links

Company List

Vijaya Bhaskar Rao

Lead Analyst, Technology

Vishnu Prasad

Analyst, Technology

Sharad Maheshwari

Analyst, Technology

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