Artificial Intelligence, Deep Tech & Venture Capital in · PDF fileArtificial Intelligence. Artificial Intelligence is pervasive across nearly every industry vertical; here are some

Artificial Intelligence, Deep Tech &

Venture Capital in Europe

30 October 2017

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Daryia Paliksha

Analyst

[email protected]

Irina Anihimovskaya

Analyst

[email protected]

Marco Squarci

Analyst

[email protected]

Yoram Wijngaarde

Founder & CEO

[email protected]

If you like this report and are hungry for more data or tailored research, get in touch!

3

https://dealroom.co/register

1. Introduction to AI & Deep Tech

2. Venture capital funding

3. Prominent VC-backed companies and exits

4. Key investors and corporates

Contents

Deep tech: cutting-edge technologies applied to solving complex problems (a subjective term)

Source: Dealroom.co 5

RoboticsAviation,

drones & spaceSemiconductors

Heavy industry & supply chain

Internet of Things

AR / VRArtificial

Intelligence

Artificial Intelligence is pervasive across nearly everyindustry vertical; here are some examples:

6

Finance, insurance

Travel & Transportation

Health TechMarketing &

SalesContent &

AdvertisingeCommerce & Marketplaces

Security Recruiting Gaming Education

Enabling software

Kreditech, Bondit (IL), Blockchain,Riskified (IL)

AImotive, MobileEye (IL),

Destygo

Sophia Genetics,Cardiologs

Market Logic Software,Vainu.io

Outbrain (IL)Shopify (Canada),

Twiggle (IL),Ometria

Ravelin,Shift

Technology

Textkernel,Source{d},Clustree

Improbable,Cubic Motion,

Niantic (US)BridgeU

Hardware Ledger Wallet

Starship Technologies,

Navya,Otto (US)

Aspect Imaging (IL),

Wandercraft,Bioserenity

Aldebaran Robotics,

GBL Robotics (Russia)

Narrative, Crunchfish,

Manomotion, Videantis

Exotec Solutions,RoboCV (Russia)

Oco, Cocoon,

Roboteam (IL),Smartfrog

Healthy Workers

Primo Toys,3dRudder,Tinkerbots,Razer (US)

Kano Computing,Blue Frog

Products & closed systems

Number26Skyscanner,Comtravo,

Uniti

Roivant Sciences, Aifloo,

Babylon Health

Swrve (US),Emarsys,

Mintigo (IL)

Sparrho,Spotify,

Facebook (US), Google

(US)

Zalando, ASOS,

Amazon (US),Ebay (US)

Darktrace,Featurespace

Jobandtalent, Hiresweet

NaturalMotionBabbel,

Viska

Interfacing (bots, voice, AR/VR, )

Brolly,Cleo AI,

Neosurance,TalkBank(Russia)

German Autolabs,WayRay,

Nexar (IL),Lola Travel (US)

MindMaze,Your.MD,

OrCam (IL)

Intercom (US), Genus AI,CallDesk

Blippar, Shazam

chatShopper,Cortexica,SyteAI (IL),Alexa (US),

Google Home (US)

OnfidoJob Pal, Sympl

Olly, Oculus (US)

Labster,Lalilo,

Immersive VR

Source: Dealroom.co

Artificial Intelligence is

Source: Neota logic 7

Artificial Intelligence

Machine learning

Natural language processing

Expert systems

Vision

Speech

Planning

Robotics

Deep learning

Supervised

Unsupervised

Content extraction

Classification

Question answering

Machine translation

Image recognition

Machine vision

Speech to text

Text to speech

Text generation

presentation continues on next page

This report provides only a glimpse into Europes Deep Tech & AI universe. The database contains

nearly 3,000 companies. Click to open:

https://dealroom.co/pricinghttps://app.dealroom.co/companies/f/locations/Europe/tags/deep tech?sort=growth_index_unique_rank

1. Introduction to AI & Deep Tech

2. Venture capital funding

3. Prominent VC-backed companies and exits

4. Key investors and corporates

Contents

1,156M 1,203M

2,940M

4,151M

3,373M 3,672M

2012 2013 2014 2015 2016 2017E

1,903M 2,585M

4,234M

7,176M 7,471M

11,388M

2012 2013 2014 2015 2016 2017E

Investment focus has shifted towards Fintech, Healthtech, Deep tech, and Enterprise Software

Investment into B2C verticals such as

Fashion, Wellness, Taxi, Travel has

stabilised since 2015. Companies

focusing on execution & consolidation ...

Source: Dealroom.co.Note: 2017E is 2017 up to Q3 annualised. Europe excludes Israel.

whereas investment into

FinTech, HealthTech, Enterprise

and Deep Tech have seen the

most growth

10

Food

Fashion

Wellness

Travel

Content

Deep Tech

Health

Fintech

Enterprise

Y-axes are not the same scale

9.5 billion invested into European Deep Tech & AI companies since 2012; steep increase since 2017

Source: Dealroom.co.Note: 2017E is 2017 up to Q3 annualised. Europe excludes Israel. 11

0.4B

0.8B 0.9B

1.7B

2.3B

4.6B

121

229

368

556

702

589

2012 2013 2014 2015 2016 2017E

Total funding ( M)

Number of rounds

Click for interactive data online!

2017 YTD:

3.4B from 442 rounds

Roivant $ 1.1bn growth equity

Improbable $ 502M series B

Kreditech 110 late VC

Decline in number of rounds is in line with overall market trend

towards fewer larger deals

https://app.dealroom.co/funding-rounds/f/locations/Europe/tags/anyof_deep tech_iot internetofthings/years/2017?showStats=annually&sort=-amounthttps://app.dealroom.co/funding-rounds/f/locations/Europe/tags/anyof_deep tech_iot internetofthings/years/2017?showStats=annually&sort=-amount

as a result 17-23% of European VC investment is now AI & Deep Tech related; versus 26-30% in Israel

Source: Dealroom.co.Note: 2017E is based on 2017 up to Q3 annualised. Europe excludes Israel. 12

23%

30%

10%

20%

30%

40%

50%

60%

2012 2013 2014 2015 2016 2017E

Europe Israel

17%

26%

5%

10%

15%

20%

25%

30%

35%

2012 2013 2014 2015 2016 2017E

Europe Israel

2013 skewed due by Mobileyes $400M growth equity round

Percentage Deep Tech & AIby VC amount invested

Percentage Deep Tech & AIby number of VC rounds

Israel

Europe

2017 skewed by:Roivant $ 1.1B

Improbable $ 502M

Israel

EuropeMore capital is going to fewer category winners

in AI & Deep Tech

That 9.5 billion in Deep Tech related investments across multiple market models and industry verticals

Source: Dealroom.co.Note: Europe excludes Israel. 13

By market approach(2012 2017 Q3)

By industry vertical(2012 2017 Q3)

9.5B

5.3B

3.8B

3.7B

2.1B

1.0B

0.9B

0.7B

0.6B

0.5B

0.4B

0.3B

0.2B

0.2B

2.0B 4.0B 6.0B 8.0B 10.0B

Deep Tech

...in combination with

Artificial Intelligence

Hardware manufacturing

SaaS models

InternetOfThings

Semiconductors

Virtual reality

Developer tools

eCommerce

Robotics

Marketplace

Meta-search

Blockchain

Computer vision

9.5B

3.4B

1.7B

1.3B

1.0B

0.8B

0.7B

0.7B

0.4B

0.4B

0.4B

0.3B

0.3B

0.2B

0.2B

2.0B 4.0B 6.0B 8.0B 10.0B

Deep Tech

...in combination with

Data analytics

Medical healthcare

Fintech

Security

Telecom

Gaming

Marketing

Content

Advertising

Home

Education

Back office

Fashion

Travel

Similar investment in hardware and

SaaS models (within Deep Tech)

Medical, fintech, security are the top verticals

related withTelecom mainly in relation to IoT and

Gaming in relation to AR/VR

Non-VC investments into deep tech advertising are undetected, as they are made from corporate balance sheets (e.g. Facebook, Google)

UK is Europes clear leader in Deep Tech, but Israel isstill ahead by total capital deployed since 2012

Source: Dealroom.co.Note: Europe excludes Israel. 14

3.5B 3.4B

1.5B

1.3B

1.1B

0.4B 0.3B 0.2B 0.2B 0.2B 0.2B 0.1B 0.1B 0.1B 0.1B

Israel UnitedKingdom

Switzerland France Germany Sweden Ireland Netherlands Finland Spain Austria Belgium Norway Russia Denmark

Venture capital investment activity