Newsletter: AI investment activity, a platform perspective #5.
In this newsletter I introduce a new angle of exploring AI startups and start to identify drivers behind them.
The highlights of the week are infrastructure/dev tools for drones and autonomous vehicles (AirShare, Cognata, $18.5M round) and a startup that aims to reshape our homes and storage practices (Bumplebee Spaces).
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If you want to skip my analysis and jump straight to data, go to the end of the note to find a table and a link on a Google spreadsheet, that contains data on featured companies and links to sources.
Newsletter 15.10.2018–21.10.2018
In this newsletter I’ve tried to dive deeper into various types of AI businesses and outline several drivers behind them.
I highlight four drivers that create demand for AI startups (and probably for any other types of startups). Two of these drivers are created by the AI ecosystem itself, as it lacks the infrastructure and tools (for DataOps, R&D). Another two drivers come from businesses that may use AI startups. These businesses crave to innovate at the product level, and build more customised products, among other things. They also constantly improve their internal processes.
Drivers behind AI startups
- Infrastructure: AirShare address the clear need for drone operations monitoring, while Aspinity builds upon the growing demand for voice control and other sensing interfaces that require specialised hardware;
- Tools: autonomous-driving developers emerge with an astonishing speed, so Cognata and Vayavision offer tools for them, e.g. large-scale simulation environments;
- Products: insurance companies experiment with connected insurance policies, and Jooycar builds data platform to help them;
- Processes: a) Insights are required to improve complex systems, for example clinical trials or production lines. By collecting and crunching data IQuity and Metron address these needs. See example of how Metron’s system works at Pic 1). b) Automation helps to improve various operating activities, like tracking surgical instruments and inventory (Applied Logic) or video surveillance (Canary Connect).
Pic. 1. Metron’s energy insights and optimisation system
Note, that distinction between insights-driven and automation-driven process improvement approaches is a bit artificial. Data collected as a part of a process automation project may also be used for generating insights about the system at the higher level. E.g. tracking surgical inventory helps a surgeon in a short term by freeing-up his/her assistants. While, in the long term, data collected on inventory turnover may be used to get insights on the wider system, e.g. how inventory is stored, how qualified assistants are, etc.
Key themes
• Autonomous driving is the theme that constantly emerges in my newsletters. This week we see three startups that help to build cars of the future. Cognata — a simulation platform, Jooycar — a connected card platform, and Vayavision — a data fusion and cognition platform;
• Healthcare another core AI theme. This industry has tones of important/life-critical activities that benefit from automation. Applied Logic, that was acquired this week, develops a surgical equipment tracking system. Earlier, RF Surgical, that detects retained surgical items, was acquired for $235M;
• Smart home is a new theme to pop up in my newsletter. Bumblebee Spaces with the help of automation and computer vision reshapes our living spaces and makes storage easier (Pic. 2).
Pic. 2. Bumblebee Spaces’ storage system
Tech platforms
This week demonstrates eight examples of tech platforms. Among them are:
• Data and algorithms platforms — Metron, Jooycar, Aspinity, Cognata etc. I would like to highlight Cognata, that reflects the demand on large scale simulations, that was earlier picked up by ones like Improbable and Simudyne;
• Autonomous agents platforms — Vayavision that is about building agents, and AirShare, that is about managing and ensuring safety of their operations.
Business platforms
I’ve identified three business platforms among AI startups that are featured in this newsletter:
• AirShare links drone operators and regulators, and even allows the latter to execute interception orders swhen required;
• Jooycar links data with insurers and fleet managers and allows them to create new insurance policies and improve fleet safety/fuel efficiency respectively;
• IQuity works with both, payers/self-insured employers and pharmaceutical companies.
More examples on building tech and business platforms as well as data on featured startups are below in the Chart 1.
Chart 1. AI companies that disclosed funding/exits during the week 15.10.2018–21.10.2018, $
Data is here (Google spreadsheet)
***
All data is from open sources and all conclusions/ideas/analysis are built only on publicly available information. For data sources see the Google spreadsheet.
*A company is defined as a platform in tech sense if someone can build up on it. I identify a comapny as a tech platform purely based on public sources, so if I misunderstood your startup, please do let me know.
**A company is positioned across a value chain and is considered as a ‘business platform’ if it has distinctive offers for several elements of this value/supply chain. If I misunderstood the value proposition of your startup, please do let me know.
This newsletter does not intend to cover all AI transactions, but covers just four themes in a limited set of geographies.
