investor's view on machine intelligence startups, 1.0, @yellowdoors meetup april 2016

Investor’sViewonMachineIntelligence@ValyaPreobragensky’smeetup@YellowDoorsApril3,2016

VictorOsyka,AlmazCapitalPartnersvictor@almazcapital.comh@p://C.com/victor.osika

Quotes•  VinodKhosla:incoming10-20yearswillchangeourlivesmorethanInternet,thansmartphones

•  EricSchmidt:machinelearning+crowdsourceddata=everyhugetechIPOsincoming5years

Wording,tasks•  DL,ML•  “AI”–wave#3inlast50years.BecauseofDeepLearning

•  Whyhypenow–  Shi[fromrules-basedso[waretoprobabilis]cworld–  FalsePosi]ve,FalseNega]ve–e.g.atFBfacerecogni]onisperceivedhigh

evenif10%error,e.g.GoogleCarperceivedasbadevenif0.01%error:)–  Discoveryofrelevantapplica]ons:

•  e.g.Machinevision,imaging•  e.g.Deepmind->control->games,Go•  e.g.NLP-fromcomputa]onallinguis]cstoDeepLearning?

HowHypesWork

AI/MIfunding:only$0.3Bin2015,outof$100BVCintotalglobally(so,$60BinUS,$40BinIT)

Approach•  Ver]cals

–  (almosteverything,actually)

VS.

•  Plakorms–  (likeDeepMind,likeScaledInferenceetc.)

Year Name $raised Exit Compe]]veadvantages

2005 Numenta,US Mostrecent-$6M2013

CLA/HTMisaboutpa@erninferenceontemporaldata,butnotDLcompany?

2010 Vicarious,US $70MfromE.Musketc.

Focusedonsensingtheworld?(visually,sensors,etc.)CombinebiologywithCS.Wellfunded,hugeteam,independent.CTOfromNumenta

2011 DeepMind,UK $40M? $500M

NowGoogle.Accesstoenormousdatafeeds.30peopleatthemomentofacquisi]on,now200.

2011 Maluuba,Canada $12M DLforNLPinterface.50MusersacrossTV,IoT,phones.Veryseasonedexecteam.ExploitCanadianDLtalent.Samsungasstrategicinvestor.

2014 ScaledInference,US $21M 2Russianfounders:)Valley-based

2014 DeepIns]nct,Israel Unknown Deeplearningforcybersecurity,longIsraelicybersecexperience

2014 MetaMind,US $8M DLforimagerecogni]on,thenNLP.RNN-based.Usedynamicmemorynetwork.R.Socher+hismachinelearningstudentsatStanford.Y.BengioandChrisManningadvisors.Valley-based.

2014 VivLabs,US $30M DLaimingtomake“intelligenceasacommodity”fordevelopers.NLPfocus.Sirifoundersbehind.Wellfunded.Valley-based.

2015 CuriousAI,Finland $1M ClosetoRussia:)

2015 OpenAI,US $1Bendowment Non-profit.Flexibility,ManyRussians:)(HeadofR&D-IlyaSutskever-oneoftheworldexpertsinmachinelearning,AndrejKarpathy,SergeyLevineetc.)

2015 NNAISENSE,Swiss Unknown Prof.Schmidhuber’sbackgroundandhisresearchteam.

Whatishot?

DeepLearningis“seeking”/”discovering”setsofproblemstobesolvedbythisapproach:•  Naturelanguageprocessing•  Controlsystems•  MLforBIGver]cals

•  Voicerecogni]on-dialoguesonly•  Machinevision–nothot

Brainsforbots?

h@p://techcrunch.com/2015/09/29/forget-apps-now-the-bots-take-over

InvestorsinRussia•  Skolkovo,robo]csclusterplansto

fund20AIprojectsin2016

•  Angelsnonqualified•  Angels–qualified

•  Funds

•  DangerousRussiancorporateinvestors:)–  Offer$,customers,R&Dhelp,–  Butaskfor70-100%ofyourequity

Investorsabroad•  Angels•  Seed

–  YC–15-20outoflast110projectsbatch–AI/MI–  Acceleratorse.g.GeneralCatalystonbots

•  VCfunds–  FoundersFund,KhoslaVentures,HorizonsVentures,etc.

•  Strategic(Tencent,Samsung)

•  USinvestorsavoidRussianow:(((

WeseekMachineIntelligencestartups

•  Currentporkolio:RoboCV,Nival,etc.

•  victor@almazcapital.com

•  h@p://Facebook.com/victor.osika