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Why VC exits are beginning to outstrip investment in AI
VC activity in AI continued growing in Q3, with a record 1,395 deals worth nearly $26 billion in aggregate. Exit activity accelerated, too, with a quarterly record 127 exits also worth nearly $26 billion. While that figure marked a quarterly decline, AI’s exit value continues to exceed VC investment in 2021.
Our latest Emerging Tech Research tracks the major storylines in AI and machine learning last quarter, including deep dives on consumer AI, edge AI software, and national defense.
Key takeaways
- Through Q3, AI exits have topped $166 billion, more than triple 2020’s total value for VC exits.
- Horizontal platforms again led VC deal value, with Databricks, DataRobot, Dataiku, and Dataminr all raising rounds over $300 million in Q3.
- Use cases achieving outstanding growth in 2021 include ecommerce recommendation engines, edtech, and transportation optimization.
Table of Contents
| Vertical overview | 3 |
| Q3 2021 timeline | 4 |
| VC ecosystem market map | 5 |
| VC activity | 6 |
| Emerging opportunities | 13 |
| Consumer AI | 14 |
| Edge AI software | 17 |
| National defense | 20 |
| Select company highlights | 23 |
| Databricks | 24 |
| DataRobot | 27 |
| Samsara | 29 |