Week Ending 10.20.19
EYE ON A.I. GETS READERS UP TO DATE ON THE MOST CRITICAL FUNDING, CORPORATE AND REGULATORY NEWS WITH ORIGINAL CONTENT AND MEDIA REPORTS FROM AROUND THE GLOBE.
This week we kick off our corporate finance newsletter with an interview of Voyager Capital’s James Nevell, who tells startups hoping to monetize their AI data to forget it. No one wants it…
Next up is ten mergers and acquisitions, two equity filings, 22 funding rounds, a handful of government moves on AI and 11 executive moves.
Companies we have tracked over the past year in the news this week include Mynd Property, UiPath, Accenture, Cielo Global, IronNet Cybersecurity, SoundCommerce, Job.com, ReliaQuest, Micron, Ocelot and ElectrifAI.
See all of this and more below ↓
And next week remember to look out for our exclusive report on an upcoming funding round in the AI sector.
Voyager Capital Managing Director James Newell
Our Exclusive Interview This Week
Startups hoping to capitalize on all the masses of data they collect from their AI algorithms should think again, says James Newell, managing director at Voyager Capital.
“I can almost assuredly tell them no wants their data because they can’t figure out what to do with it,” according to Newell. “Yet so many founders feel like they’re sitting on a goldmine.”
Read our entire story here
MERGERS AND ACQUISITIONS
Larsen & Toubro Infotech, the Mumbai, India-based consulting company, said it acquired AI company Powerupcloud Technologies.
Cognex, the Natick, Massachusetts-based industrial sensor maker using AI, said it acquired SUALAB, the South Korean industrial deep learning company.
Cognex CFO John Curren resigned in May and in November last year the company announced an up to USD 200m buyback.
SailPoint Technologies, the Austin, Texas-based identity verification software developer using AI, said it acquired Orkus and OverWatchID, two AI and machine learning companies. SailPoint is backed by private equity firm Thoma Bravo.
Mynd Property Management, the Oakland, California-based property management company using AI, said it acquired property management firm Empire Industries. In July it acquired HomeUnion, which offers a property valuation product that uses AI.
UiPath, the New York City-based robotics process automation company, said it acquired StepShot, the documentation software company, and also acquired Dutch software firm ProcessGold.
Last month UiPath hired Chris Townsend as vice president of federal sales. In May, the company raised USD 568m in a Series D led by Coatue, the technology-focused hedge fund. It raised USD 225m in a Series C led by CapitalG and Sequoia Capital in September last year.
Intel, the Santa Clara, California-based chipmaker, said it acquired Smart Edge, the business services platform using AI, from Pivot Technologies.
Thrive Global, the New York City-based company started by media entrepreneur Arianna Huffington, said it acquired AI company Boundless Mind.
TV Time, the Los Angeles, California-based marketing platform using machine learning, said it acquired Mediamorph, the marketing firm. The combined companies will be named Whip Group.
Shopify, the Ottawa, Canada-based e-commerce company, said it completed the acquisition of logistical robotics firm 6 River Systems, announced in September.
Accenture, the New York City-based professional services company, said it acquired Happen, the consumer marketing firm using AI.
Last week Accenture acquired Sutter Mills, a marketing company using AI, following on it acquisition last month of Spanish AI company Pragsis Bidoop.
In August, Accenture said it was acquiring Analytics8, the Australian data and analytics firm using AI. It acquired TargetST8 Consulting, which specializes in commercial lending with AI, in October last year.
In July last year Accenture acquired Kogentix, an AI and big data company, and Real Time Analytics Platform, a machine learning and neural networks firm.
A venture capital fund run by the professional services firm acquired a minority stake in Malong Technologies, the Shenzhen, China-based AI company, around the same time.
FILINGS
Youdao, the Hangzhou, China-based educational company using machine learning, said it is raising USD 100m in a downsized initial public offering of 5.6m American Depositary Shares at as much as USD 18 each on the NYSE. One ADS represents one share.
In its original filing earlier this month the company had targeted a USD 300m IPO. The company is a unit of online gaming company Netease, which will maintain control of Youdao through a dual class shareholding.
Verdant Robotics, the Hayward, California-based company using computer vision and machine learning to boost crop yields, said in a Form D filing it raised USD 11.5m.
Megvii Technology, the Beijing, China-based AI company, is moving forward with an at least USD 500m initial public offering in Hong Kong despite a US government blacklist over abuses against Muslim minorities, Bloomberg reports. The Alibaba-backed facial recognition company works with governments and companies.
The blacklist had reportedly caused Goldman Sachs to reconsider involvement in the listing.
And another report on how Palantir Technologies, the Palo Alto, California-based company providing AI-based analytics to government organizations including US police forces and the military, may give a previously planned IPO a miss this year from Fortune for more private funding.
FUNDING
West Creek, the Glen Allen, Virginia-based financial technology firm using machine learning, said it arranged a USD 150m credit facility from alternative asset manager Pollen Street Capital.
Algolia, the San Francisco, California-based business search services firm using machine learning, said it raised USD 110m in Series C funding led by venture capital firm Accel. A venture capital fund from Salesforce also participated.
Qutoutiao, the Shanghai, China-based mobile news aggregation service using AI, said one of its online literature subsidiaries Midu raised USD 100m in a Series B led by CMC Capital.
Qutoutiao’s shares currently trade at just less than half the price of its radically downsized USD 84m initial public offering of 12m ADS on the Nasdaq last year. The company had originally filed for a USD 300m IPO of 16m ADS.
Pendo, the Raleigh, North Carolina-based business services firm using machine learning, said it raised USD 100m in a Series E funding led by Sapphire Ventures. General Atlantic and Tiger Global also participated.
ArsenalBio, the South San Francisco, California-based company developing cancer treatments using AI, said it raised USD 85m in a Series A financing led by Westlake Village BioPartners.
Galileo Financial, the Salt Lake City, Utah-based financial software developer using AI, said it raised USD 77m in a Series A led by venture capital firm Accel.
Invoca, the Santa Barbara, California-based marketing firm using AI, said it raised USD 56m in an unspecified funding round led by Upfront Ventures and H.I.G. Growth Partners. Accel and Morgan Stanley also participated.
MyGate, the Bengaluru, India-based security company using AI, said it raised USD 56m in a Series B funding that included investors such as Chinese internet giant Tencent, JS Capital, Tiger Global Management and Prime Venture Partners.
Sisu, the San Francisco, California-based data services firm using AI, said it raised USD 52.5m in a Series B funding led by venture capital firm New Enterprise Associates.
Corelight, the San Francisco, California-based cybersecurity firm using AI, said it raised USD 50m in a Series C funding round led by Insight Partners and Accel.
CleverTap, the Mountain View, California-based marketing platform using AI, said it raised USD 35m in a Series C funding round led by Sequoia India and Tiger Global Management.
Mathpresso, the Seoul, South Korea-based education app using AI, said it raised USD 14.5m in a Series B funding led by the venture capital unit of Chinese computer maker Legend, according to a TechCrunch report.
Quantemplate, the London, UK-based insurance analytics company using machine learning, said it raised USD 12m in an unspecified funding round led by Route Sixty-Six Ventures and the venture capital unit of Transamerica. The venture capital unit of German insurer Allianz also participated.
Winnow, the London, UK-based based food waste tracking company using AI, said it raised USD 12m in a Series B that included investors such as Mustard Seed, the California-based venture capital fund, and Ingka Group, one of a host of companies that own the Swedish furniture maker IKEA.
Realtime Robotics, the Boston, Massachusetts-based company developing systems for real-time autonomous response/reaction, said it raised USD 11.7m in a Series A led by SPARX Asset Management. Mitsubishi, Hyundai and a venture capital unit from Toyota also participated.
AWM Smart Shelf, the Aliso Viejo, California-based company developing autonomous shopping systems, said it raised USD 11m in a Series A financing led by Impact Venture Capital.
Hummingbird Technologies, the London, UK-based crop analytics company using AI, said it raised USD 10m in a Series B funding led by venture capital units of Germany’s BASF and Canadian telecommunication firm TELUS. An investment vehicle owned by the Saudi Arabian government also participated.
Other deals under included 3DSignals, Cashforce, Strapi, Latent AI and Labrador Systems
LEGAL AND REGULATORY
The UK government has backed a Microsoft AI initiative aimed at increasing the use of the technology in a variety of sectors, including healthcare.
The US Center for a New American Security’s AI Task Force announced three new members. The organization is composed of former senior government officials, private industry leaders, and academic experts examining how the US should respond to the national security challenges posed by AI.
In other news the government of Hungary announced plans to set up an AI research facility next year and the government of Abu Dhabi said its newly founded AI University will start taking students next year.
PEOPLE
Cielo Global, the Lubbock, Texas-based investment firm focused on AI, machine learning and financial technology, said it hired food retailing veteran Richard Anicetti as COO.
In June it hired Sallie Rodriguez as director of talent and culture.
Arcadia.io, the Burlington, Massachusetts-based health care analytics firm using machine learning, said it hired Heather Trafton as COO.
IronNet Cybersecurity, the Fulton, Maryland-based computer and network security company using AI, said it hired former head of US Cyber Command Donald Closser as chief product officer. It hired former Accenture executive Russell Cobb as chief marketing officer in June.
Dataiku, the New York City-based business services firm focused on AI, said it hired Joy Walters Sybesma as chief people officer and Kurt Muehmel as chief customer officer.
SoundCommerce, the Seattle, Washington-based marketing platform using AI, said it hired Laurent Burman as CCO.
In July it hired former Amazon executive Meredith Han as COO. In June, it raised USD 6.5m in a seed round led by Silicon Valley's Defy Partners.
Job.com, the Austin, Texas-based recruitment platform using AI, said it hired Steve O'Brien as president of staffing. The company hired Theo Rokos as chief revenue officer in September.
ReliaQuest, the Tampa, Florida-based cybersecurity firm using machine learning, said it hired Ken Smith as chief revenue officer, Kristy Ayala as vice president of demand generation and Seth Goldhammer as vice president of product marketing. The company acquired Threatcare earlier this month.
Micron Technology, the Boise, Idaho-based semiconductor maker, said it promoted Paul Marosvari to vice president and chief accounting officer. Earlier this month Micron said it expects to pay USD 1.5bn in cash for Intel’s stake in their IM Flash Technologies joint venture, and plans to invest USD 100m in AI companies through its venture capital arm, Micron Ventures.
Ocelot, the Boulder, Colorado-based education technology company using AI, said it hired Christian Lawrence as president, Ciaran Power as COO, Benjamin Beck as senior vice president of product and Steve Johnston as senior vice president of marketing and sales operations.
ElectrifAi, the Jersey City, New Jersey-based AI company, said it hired Deron Hurst as senior vice president of federal government division. In July the company, which was formerly known as Opera Solutions, hired Edward Scott as CEO.
Cerebras Systems, the Los Altos, California-based AI computer chip maker, said it hired Vinay Srinivas as vice president of software engineering.
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