News and Research

Artificial Intelligence M&A and VC Funding Update, H1 2018

Los Angeles, CA – August 17, 2018 – Solganick & Co. issues its latest Artificial Intelligence (AI) M&A and VC Funding update for H1 2018.  The following highlights the report, which can be downloaded here: Solganick Co Artificial Intelligence MnA Update H1 2018

Quick Answer

Artificial Intelligence (AI) M&A activity and VC funding experienced significant growth in H1 2018, indicating increased investor confidence in the sector. Total US AI M&A deals were on pace to reach 131 acquisitions by the end of 2018, representing a 14% increase from 2017. AI VC funding surged to $4.2 billion in H1 2018, a substantial 77% increase compared to $2.38 billion in H1 2017. This robust funding environment signals a potential long-term increase in AI M&A activity.

  • Total US Artificial Intelligence M&A deals are on pace to hit 131 acquisitions by the end of 2018, a 14% increase from 2017.
  • Artificial Intelligence M&A multiples have been scarce, but A2iA was acquired for approximately $58m, or 29x EBITDA, by Mitek Systems.
  • VC funding for Artificial Intelligence continues to grow signaling an increase in investor confidence. Artificial Intelligence VC funding totaled $4.2B for H1 2018, a 77% increase compared to H1 2017’s total of $$2.38B. The large increase in VC funding signals a long-term increase in Artificial Intelligence M&A activity.

 

10 top tech companies currently investing and acquiring in AI include:

Amazon
Apple
Facebook
Google
IBM
Microsoft
NVIDIA and Nuance
Uber
Salesforce
Spotify

 

A few highlighted M&A and VC transactions within the AI sector include:

  • Salesforce Signs Definite Agreement to Acquire Datorama
  • S&P Global Completes Acquisition of Kensho
  • Alibaba Joins $600M Round For Chinese AI Facial Recognition Start-up Megvii
  • SenseTime Closes $620M Series C+ round with Alibaba & Qualcomm

 

To review the complete report, go here:  Solganick Co Artificial Intelligence MnA Update H1 2018

 

For more information or to inquire about an M&A transaction within the Artificial Intelligence sector, please contact us.

 

Frequently Asked Questions

1 What were the key trends in Artificial Intelligence M&A activity during H1 2018?

The report indicates that total US AI M&A deals were on pace to hit 131 acquisitions by the end of 2018, a 14% increase from 2017. It also highlights an acquisition multiple for A2iA by Mitek Systems at approximately 29x EBITDA.

2 How did VC funding for Artificial Intelligence companies perform in H1 2018 compared to the previous year?

Artificial Intelligence VC funding totaled $4.2 billion for H1 2018, representing a 77% increase compared to H1 2017's total of $2.38 billion. This significant growth signals increased investor confidence and a potential long-term increase in M&A activity.

3 Which major tech companies were actively investing in and acquiring AI companies in H1 2018?

The report lists Amazon, Apple, Facebook, Google, IBM, Microsoft, NVIDIA, Nuance, Uber, Salesforce, and Spotify as top tech companies investing and acquiring in AI during that period. Notable transactions include Salesforce acquiring Datorama and S&P Global acquiring Kensho.

4 Can I access the full Artificial Intelligence M&A and VC Funding report for H1 2018?

Yes, the complete report, which details the M&A and VC funding update for Artificial Intelligence in H1 2018, can be downloaded directly from the page. It provides a comprehensive overview of the market trends and specific transactions.