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

  • 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 and VC funding for H1 2018?

For H1 2018, US AI M&A deals were projected to increase by 14% from 2017, reaching 131 acquisitions. VC funding for AI totaled $4.2 billion, marking a significant 77% increase compared to H1 2017, signaling growing investor confidence and a potential long-term rise in M&A activity.

2 Which major tech companies are actively investing in or acquiring AI firms?

The report identifies ten leading tech companies actively involved in AI investments and acquisitions. These include Amazon, Apple, Facebook, Google, IBM, Microsoft, NVIDIA, Nuance, Uber, Salesforce, and Spotify, demonstrating broad industry interest in the AI sector.

3 Can you highlight any specific notable AI M&A or VC transactions from H1 2018?

Yes, key transactions included Salesforce's agreement to acquire Datorama, S&P Global's completion of the Kensho acquisition, Alibaba's participation in a $600M funding round for Megvii, and SenseTime closing a $620M Series C+ round with Alibaba and Qualcomm.

4 Where can I access the complete Artificial Intelligence M&A and VC Funding report?

The complete Artificial Intelligence M&A and VC Funding update report for H1 2018, published by Solganick & Co., is available for download directly from the webpage. A link to the full report is provided within the article content for interested readers.