Promises and perils of a decade of financing artificial intelligence

Promises and perils of a decade of financing artificial intelligence

Editor’s Note: In this four-part series, we explore the impact of AI startups on multiple sectors. Each story highlights companies, investments, risks, fears, and whether the promise of artificial intelligence will truly be realized. In this first part, we look at venture capital investment in AI over the past decade and the leading sectors. — Kristin Kilpatrick, Special Projects Editor

From robotics to healthcare to wig design, AI technology has had an impact on a wide range of industries. Funding for AI startups has hovered around 9% to 10% of global venture capital dollars in recent years, based on an analysis of Crunchbase data.

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Robotics, autonomous vehicles, and enterprise software are the leaders in AI startup funding, but other sectors are quickly following: biotechnology, computer vision, language processing, fintech, semiconductors, security, logistics, learning, agtech and more.

In 2013, financing for companies using AI was $3 billion, with fewer than 1,000 deals. In 2021, AI funding will peak at $69 billion across more than 4,000 deals. Venture capital investment in technology has reached $38 billion so far this year.

Most Valuable Artificial Intelligence Company Crunchbase Unicorn Board It: Data and artificial intelligence company Databricks, worth $38 billion; Driverless car company Sea trip 30 billion dollar research and development company Open AI $20 billion and an AI writing assistant service grammar $13 billion. In this current investment climate, Ratings are likely to be low of these peaks in 2021.

in Techonomy 2022conference on the future with a spotlight on climate technology, Waymo Co-CEO Tekedra Makana He highlighted the launch of the company’s driverless ride-sharing service in 2020 in the East Phoenix area. And the Ken WashingtonVice President of Consumer Robotics Amazonthe company showed off the demo of a home robot called Astro that would monitor security as well as interact with family members and act like a pet.

Recently, generative AI has become a trending sector for investment by serving textual visual arts AI stabilityAnd the Edit the text to start the audio and video transcription the description Both are raising funds with high valuations.

Pipeline growing

The number of AI companies that have raised their seed funding since 2020 and raised more than $1 million in equity amounts to more than 600 each year. Of these companies, more than 400 make up Series A annually. And in Series B, that number is 200 companies.

With a strong portfolio of AI startups transforming a number of industries, our series of stories will highlight some of the most important sectors and companies and explore the reach of this ever-evolving technology.

Cybersecurity startups, for example, saw a record $2.1 billion in venture investment last year, according to Crunchbase. data. The pandemic has also sparked new interest in AI-assisted medical diagnoses, with funding for these startups jumping from $348 million in 2020 to more than $1 billion in 2021. Indeed, AI has infiltrated the most surprising sectors, improving every Something starting from the way we do it. Get our sleep, grow our fish and style our wigs. Who knows what next?

Check back for part two of our series, which looks further at the growth of AI startups in the cybersecurity sector.

Clarification: Dom Guzman

Stay on top of recent funding rounds, acquisitions, and more with Crunchbase Daily.

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