A satellite view of the financing of artificial intelligence

Over the past ten years, the artificial intelligence sector has experienced very impressive growth. A myriad of companies have been launched in a wide variety of fields ranging from robotics to biotechnology, via software, and self-driving cars.

Artificial intelligence attracts investors

But Rome was not built in a day, and these startups need funding to ensure their survival in the seed phase and succeed in bringing their ideas to life. Crunchbase rightly conducted a study of venture capital investments in AI over the past decade. What better way to understand developments in this market considered to be very buoyant.

Among the major lessons that we can learn, we can first of all note that artificial intelligence represents a growing and non-negligible share of investments in startups: between 9 and 10%.

Another interesting fact to note is the robotics which gets the lion’s share by recovering between 12 and 24% of the amounts invested over time. If the movement has slowed down a little, this market has also evolved favorably in favor of the pandemic.

Autonomous vehicles are also attractive and represented the second area of ​​investment in AI (9% in 2022). However, this could well change, and prominent members of this industry expressed their doubts on the possibility of seeing autonomous cars launched on the market in the short term. Starting from a very low base (7% of investments), the field of biotechnologies now completes this podium with 9% of venture capital invested.

Overall, investment in companies specializing in AI has literally exploded from $3 billion in 2013 to $69 billion in 2021. After 9 years of consecutive increases, we are likely to see a slowdown this year , where $38 billion has been invested so far.

Some AI companies have managed to hold their own in this fierce competition. Thus, the most valued tenors are cited by Crunchbase, like Databricks, the data specialist which weighs 38 billion dollars, Cruise, specialized in autonomous cars: 30 billion, or OpenAI, which notably publishes GPT- 3: $20 billion. Finally, let’s not forget Grammarly, also specialized in text generation: 13 billion dollars.

Towards a slowdown in 2023?

The various fundraising announcements hide significant disparities between startups. To speak only of the year 2022, 641 companies raised funds in the seed phase, 453 in series A, 243 in series B, and 92 in series C.

These figures remain flattering and still on the rise compared to previous years. But the situation could unfortunately change soon. Indeed, we spoke to you last week about this study conducted by the Carta platform, according to which American startups are raising lower and lower amounts in the third quarter of 2022. Similarly, the total number of funding rounds was 1,186 compared to 2,139 over the same period last year.

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A satellite view of the financing of artificial intelligence

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