CB Insights - $17.9 billion in AI funding

Hi there,
 

We just released our State Of AI report. Download it here.

And now, here is this week in charts.

Making that bread. Artificial intelligence startups raised $17.9B in funding in Q3’21, a new global funding record. Mega-rounds ($100M+ deals) accounted for over $10B of the quarter’s funding. Exits have also trended upward, with 100+ AI acquisitions for the second quarter in a row. The biggest M&A deal was PayPal’s acquisition of AI-enabled buy now, pay later startup Paidy.

EV mania. Just weeks after Tesla became the first automaker ever to reach a $1T market cap, Rivian raised $11.9B in its IPO — making it one of the top 10 US IPOs ever. The EV truck maker’s stock opened at almost $107 a share on Wednesday, a 37% pop from its IPO price, giving it a $91B market cap. For comparison, automaker Ford — which sold 4.2M vehicles in 2020 — has a market cap of $78B. Rivian began producing and delivering vehicles only 2 months ago. Meanwhile, Tesla is reportedly on track to deliver nearly 900K vehicles this year. As investors bet on a shift away from fossil fuel-powered cars, the race for EV market share is on. 

Data doctor. Healthcare AI startups had a breakout quarter, with $3.2B raised across 149 deals. Healthcare AI is seeing strong growth as AI developers train algorithms using the vast amount of data generated in areas like diagnostics and drug R&D to improve drug discovery, medical imaging, and more. 

Inflation station. US consumer prices have surged 6.2% over the last year — the fastest increase since 1990. Supply chain bottlenecks and labor shortages, combined with high demand for goods, have helped fuel the price increases for goods like cars and furniture. Prices may continue to rise as the holiday shopping season puts even more pressure on supply chain infrastructure like ports and trucking routes.

It’s in the bag. Hermès Birkin bags’ annual average return has outpaced both the S&P 500 and gold since their debut in 1981, according to a 2016 study. The bags, which are some of the most expensive in the world, have reportedly increased in value 500+% in a 35-year period, as Hermès has restricted supply of the bags despite high demand.

Thank u, next. What’s being communicated here? Answer: absolutely nothing. H/t to Geoff Devereux of First West Capital for sending us this week’s +1. 

Come across a bad visual or chart? Send it our way. 
 

I love you.

Anand

@asanwal

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