artificial intelligence, deep tech & venture capital in … · artificial intelligence....
TRANSCRIPT
Artificial Intelligence, Deep Tech &
Venture Capital in Europe
30 October 2017
Dealroom helps corporations, investment firms and governments to track innovative companies and identify
strategic opportunities, through data-driven software
Europe’s preferred tech research platform
■ Founded in 2013 in Amsterdam, Dealroom provides a 360°
view on Europe’s high-growth and innovative industries
■ Top-tier corporates, venture capital & private equity firms, consultants and banks use Dealroom’s software, database and bespoke research to identify & track growth opportunities and stay at the forefront of innovation
■ Database access is free with premium & bespoke options
Manual curation & research by Dealroom
Machine learning and natural language processing
15,000+ contributors (founders, VCs, analysts)
Automatic data feeds and web crawlers
Combining multiple data sources
One platform: data, software, bespoke research.
Daryia Paliksha
Analyst
Irina Anihimovskaya
Analyst
Marco Squarci
Analyst
Yoram Wijngaarde
Founder & CEO
If you like this report and are hungry for more data or tailored research, get in touch!
3
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 Europe’s Deep Tech & AI universe. The database contains
nearly 3,000 companies. Click to open:
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
… 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 Mobileye’s $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 Europe’s 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 by country (2012-2017 Q3)
Number of VC rounds (2012-2017Q3) As % of all VC rounds
25% 24% 23%
19% 17% 17% 16%
15% 14% 13% 13% 13% 13%
11% 9%
839
364 348 339
189 151 132 131
94 81 73 68 51 46 40
€ 1,649M
€ 1,452M
€ 826M
€ 464M
€ 363M
€ 103M € 91M € 78M
–
€ 400M
€ 800M
€ 1,200M
€ 1,600M
€ 2,000M
United Kingdom Switzerland Israel France Germany Ireland Finland Belgium
2012 2013 2014 2015 2016 2017E
UK taking lead in Deep Tech, but other countries on the rise too; France closing in by number of rounds
Source: Dealroom.co. 2017E based on 2017 to Q3 annualised. 15
Invested capital (2012-2017E)Number of Deep Tech & AI VC rounds by country
Improbable $ 502M
Roivant$ 1.1B
141
109
61 52
31
–
40
80
120
160
200
2012 2013 2014 2015 2016 2017E
United Kingdom France Israel Germany Sweden Switzerland
UK
France
1. Introduction to AI & Deep Tech
2. Venture capital funding
3. Prominent VC-backed companies and exits
4. Key investors and corporates
Contents
Selected top European VC-funded companies
Source: Dealroom.co 17
Company Description Location Total Funding Investors
Biopharmaceutical company
Basel, Switzerland€ 1.1B
Last round: Growth Equity(Aug 2017)
SoftBank, Viking Global Investors, QVT Financial, Dexcel Pharma
Builds simulated worlds that can be used by game developers
London, UK€ 504M
Last round: Series B (May 2017)
SoftBank, Horizons Ventures, Temasek Holdings, Local Globle, Conversion Capital, Amadeus Capital, David Rowan, Andreessen Horowitz
Developing a new generation of nanopore-based electronic systems for analysis of single molecules
Oxford, UK€ 328M
Last round: Growth Equity(Dec 2016)
GT Healthcare, IP Group Plc, Woodford Investment, Odey Asset Management, Lansdowne Partners, Illumina, Invesco
New generation storage systems for enterprises
Herzliya, Israel€ 296M
Last round: Series C(Oct 2017)
Goldman Sachs, TPG Growth, Security Growth Partners
Uses machine-learning technologies to provide access to better credit for the underbanked
Hamburg, Germany€ 256M
Last round: LATE VC(May 2017)
PayU, Rakuten, International Finance Corporation, Värde Partners, Amadeus Capital, J.C. Flowers & Co., HPE Growth Capital, Blumberg, Victory Capital, Point Nine, Kreos Capital, H2
Investments, Global Funders, 10x Group, 121WATT, Digital Pioneers, HitFox Group, YoungBrains, Nils Henning, Sebastian Diemer, Heissam Hartmann, Felix Haas, Stefan
Glaenzer, Micheal Brehm, Peter Thiel
Provides enterprise immune system technology for cyber security
Cambridge, UK€ 163M
Last round: Series D (Jul 2017)
Insight Venture, KKR & Co., TenEleven, SoftBank, Summit Partners, Hoxton Ventures, TalisCapital, Invoke Capital Partners
Selected exits in European in AI and Deep Tech
Source: Dealroom.co 18
Company Description Location Transaction Acquirers Investors who exited
Secure connectivity solutions for embedded applications
Eindhoven,Netherlands
€ 42.8BAcquisition(Oct 2016)
QualcommSan Diego, CA, USA
Apax Partners, KKR, Bain Capital, Silver Lake Partners
Semiconductor intellectual property supplier
Cambridge, UK£ 24B
Acquisition (Jul 2016)
SoftBankTokyo, Japan
-
Developing advanced driver assistance systems
Jerusalem, Israel$ 15.3B
Acquisition(Aug 2017)
Intel Corporation Santa Clara, CA, USA
Morgan Stanley, Sailing Capital, Goldman Sachs, Gandyr Group, GlenRock Israel, FIBI, Fidelity, Mayer’s Cars and Trucks, Wellington
Management, BlackRock, Enterprise Rent-A-Car, Delek Group, Daniel Gutenberg, Shmuel Harlap, Peter Neustadter
Manufacturer ofrobotic systems
Berlin, Germany€ 4.5B
Acquisition(Jul 2016)
Midea GroupGuangdong, China
-
Designer and developer of silicon and software for the consumer electronics market
Cambridge, UK$ 2.1B
Acquisition(Oct 2014)
QualcommSan Diego, CA, USA
Scottish Equity Partners, Intel Capital, Mobile Internet Capital, LDC
Builds general-purpose algorithms for use in simulations, e-commerce applications, and games
London, UK£ 400M
Acquisiton(Jan 2014)
GoogleMountain View, CA, USA
Horizon Ventures, Founders Fund
Machine learning based approaches for visual processing on web, desktop and mobile
London, UK$ 150M
Acquisiton(Jun 2016)
TwitterSan Francisco, CA, USA
Octopus Ventures, Balderton Capital, 7percent Ventures, Entrepeneur First
presentation continues on next page
Click here to explore Deep Tech exits!
1. Introduction to AI & Deep Tech
2. Venture capital funding
3. Prominent VC-backed companies and exits
4. Key investors and corporates
Contents
Most active VC investors in European AI & Deep Tech
VC Investor Location European deep tech portfolio companies Exits
Paris, FranceJoshfire, FabZat, Admedo, Viewsy, Finexkap, VideoStitch, Sqreen, Hoard, Obvious Engineering, Geenapp,
Fred’s Accounting, Whally, Visiblee, Camera 51, Reminder, DICE, Smart Me Up, Reach Robotics, Aiden, Recast.AI, Sensibo, Doctrine, sourced, Doctrine, Salezeo, Aniyways, Crowd Process, Gorgias, Riminder
-
Bonn, GermanyItemBase, p3dsystems, ParkTAG, Bitstars, Bionic Robots, uberMetrics Technlogies, coModule, Venneos,
Compositence, Somonic, NUIA, Data Virtuality, Multiphoton Optics, POSpulse, Cuculus, Pulsar Photonics,SE.M.LABS, Magazino, ReActive Robotics, Raumfeld, Moberries, SOTA Solutions, Evaly
Versus, Gestigon, Enshape
Paris, FranceSnips, Adnow, Netatmo, Parrot, Dictanova, Ween, Smart Me Up, E.Sensory, Pkparis, Equisense, Crosscall, MilleursAgents.com, InnerSense, Actility, Pandascore, Marbotic, Balyo, EOS imaging, Delair-Tech, VEKIA,
Bioserenity, Wandercraft, CardioLogsWiThings
LocalGlobe London, UKEchobox, Improbable, Statustoday, Lingumi, Dronomy, Signal Media, Bd4travel, ASI, Streetbees, Vinaya,
Riskifield, Old St Labs, Cleo AI, Thread, skimlinks, CheckRecepient, Beamery, Furhat Robotics-
Hong Kong, HKAniyways, Everything.me, Meteo-Logic, Mishor3D, NanoSpun, Windward, Teralytics, Jobspotting, Summly,
ImprobableDeepMind, Crosswise, Spotify
London, UKDuedil, GoSquared, Pusher, EyeEm, GoCardless, OpenSignal, Narrative, Digital Shadows, Tray, Limejump,
Ravelin, Prowler.io, wireWAX, Reach Robotics-
London, UKaiHit, XMOS, artimi, Kreditech, Ravelin, Five AI, Prowler.io, Graphcore, CheckRecipient, Exonar, Improbable,
Synthace LimitedVocalIQ
Source: Dealroom.co 21
Top U.S. corporate investors in European Deep Tech
Corporate Location European deep tech investments & acquisitions Exits
Santa Clara, USANUIA, CGTrader, DiBcom, Movea, Fortscale, OrCam, Silicon Hive, Envara, Sckipio Technologies,
Parallel Machines, Stratoscale, ProGlove, Panoply, W.S.C. Sports, Chronocam, Ascending Technologies, ProGlove, Infineon Technologies, Yogitech, MAVinci, Medopad, CoFluent Design
Layar, Imagination Technologies, Aldebaran Robotics, Jordan Valley
Semiconductors
Cupertino, USA Acunu, Metaio, VocalIQ, faceshift, RealFace, Regained, PrimeSense Imagination Technologies
San Diego, USACSR, Wilocity, Cubic Telecom, Skysense, Reach Robotics, Scyfer, Solenica, NXP Semiconductors,
Wilocity, Blippar, Fotokite, OpenSignal-
Redmond, USASwiftKey, Solair, Opuscope, Hexadite, Onfido, Airobotics, SAM Labs, Neura, CommonSense
Robotics, Genoox, Knowmail, Siemplify, W.S.C. Sports, Cognisess, AttachingIT, ArtGuru, Bepleez-
Mountain View, USADeepMind, MoodStocks, DFKI, AIMatter, Resolution Games, Hark, Dark Blue Labs, Vision
Factory, Blockchain-
San Jose, USA Worldsensing, Actility, EVRYTHNG, Adbrain, Veniam -
Seattle, USA Musaic, Invoxia, Oco, NICE, Liquavista, Evi, Cloud 9 -
Source: Dealroom.co 22
Top European corporate investors in AI & Deep Tech
Source: Dealroom.co 23
Corporate Location European deep tech investments & acquisitions Exits
Munich, GermanyTado, ParkTAG, Pyreos, Panoratio, Wirescan, Sternico, Magazino, Enstorage, TASS
InternationalCyActive
Stuttgard, GermanyGraphcore, Actility, Robart, Modcam, Chronocam, Unispectral, Aimotive, AdasWorks,
Utilight, ParkTag, Pebbles Interfaces, Ignuazio, Optomed, IntrinsicID-
Frankfurt, Germany Micropelt, Cuculus, Augmentation Industries, Trinckle, ParkTAG, Confovis, ClickWorker BigRep
Montrouge, FranceEOS Imaging, Ween, FabZat, Enerbee, HiKob, 3DRudder, Pixyl, Kleuster, Usitab,
Pyntheas TechnologiesDiBcom
Cambridge, UK Jukedeck, Audio Analytic, GeoSpock, Prowler.io, Cambridge Medical Robotics -
Paris, France Actility, AwoX, Equisense, Smartly.ai, AccelaD CoFluent Design
Worblaufen, Switzerland Ava, Sophia Genetics, PIQ, Insightness, Actility -
What Europe’s most prominent investors are doing
VC investorProminence
rank (1) Country European deep tech portfolio companies Exits
1st UK Collibra, artimi, DataBerries, Kayrros, Beamery, BERG Cloud, EDITED SwiftKey, Alert Me
2nd Germany Loop Me, Zeitgold -
3rd UKGoCardless, Furhat Robotics, Sophia Genetics, ComplyAdvantage, 3D Hubs,
Thread, The curios AI company, Sketchfab
Magic Pony Technology, RTT (Realtime Technology),
Natural Motion
4th Sweden Aidence, FishBrain, Supponor, FUSE, Spotify VisualDNA, Spotify
5th SwitzerlandFive AI, Seerene, Teralytics, GoEuro, Lookback, Blockchain, ShapeShift,
SpotifySpotify
6th USAGoCardless, CheckRecipient, Celonis, KnC Miner, ClusterHQ, Fantasy
Shopper, artimi, SpotifyPontis, SwiftKey,
SuperDerivatives, Spotify
7th Germany Tink Gmbh -
8th Israel CoolaData, Siemplify, Logz.io, Celeno, Celonis, Growth Intelligence Telit Wireless Solutions
Source: Dealroom.co1. Dealroom’s Prominence Rank is a global rank of VCs ranked by their level of activity and track-record (major exits) in Europe. The full Prominence Rank and background info available on: https://app.dealroom.co/most-prominent-investors 24
Visit us on dealroom.co for more information
Visit pricing page to learn more about Dealroom’s premium products!