PitchBook News - AI & ML is paying off in a big way

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The Research Pitch

November 27, 2021

Last month, PitchBook partnered with the New America Alliance, an organization that supports women- and minority-owned firms, to host a discussion on seeding and anchoring emerging managers.

Four leading allocators offered their insight on a panel moderated by our PE analysts Wylie Fernyhough and Rebecca Springer.

To read our key takeaways from the event, click here.

If you're looking for a deeper dive, check out our report: Seeding and Anchoring PE Managers.

Also, don't forget to join our Dec. 1 webinar on private fund performance, with a spotlight on venture capital. Register here.

Enterprise AI is reaching adolescence in public markets via mega-exits

AI software has struggled to take off its training wheels in the real world—quite literally in the case of steering wheels in autonomous driving.

With VC investment in AI taking off in 2014, only in 2019 did the vertical begin to produce a high volume of exits over $1 billion—justifying hype around the technology yet leaving many use cases short of scale.

VC bets on AI have paid off with 47 mega-exits since 2019.

Even among these initial exits, startups relied on limited applications of machine learning, including random forest models and gradient boosting, while more advanced deep learning techniques like convolutional neural networks remained in training.

PitchBook Emerging Tech Research's taxonomy of 71 AI use cases and patent library provide a framework for assessing the business models and technical underpinnings of AI startups.

Our latest analyst note identifies the use cases and model architectures driving these exits, focusing on the initial wave from 2019-2021.

Click to download our free research: Taking Off AI's Training Wheels

Don't hesitate to reach out to discuss any of these topics further.

Best,

Brendan Burke
Senior Analyst, Emerging Technology

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Market Updates

Concerns of persistent inflation have prompted many LPs to look to real assets funds as an inflation hedge in their portfolios.

At the same time, the supply chain crisis, energy transition, and digitization have created new investment opportunities, according to our latest Global Real Assets Report.

Commodity prices are soaring. A $1 trillion-plus infrastructure bill has passed in the US—this on top of steady fund returns from infrastructure managers.

Our analysts contend that the outlook for real assets is more bullish than it has been in years:

read the free report

PE and VC activity in Europe DACH's region raced to new annual peaks by the end of Q3.

The high-level trends are driven by Germany, the largest country in the area, but Switzerland and Austria are also setting new records for investment, per our DACH Private Capital Breakdown.

Germany's lack of digitization and a green economy is providing PE sponsors with ample opportunity to address those needs.

And on the venture side, the broader DACH region has established itself as a major VC hub equipped with vast networks, attractive cities, and highly skilled talent:

read the free report

In the News

Our insights and data featured in the press:

The outlook for real asset funds—particularly infrastructure—is the brightest it's been in years. [Institutional Investor]

More than $21 billion in VC investment was poured into last-mile delivery startups in the first three quarters of 2021. [Insider]

The glut of capital from bigger funds is set to squeeze some less established players out of the market. [Financial News]

Space-data companies, which use satellites to snap photos of Earth, track radio signals and use radar to peer through clouds, have raised around $10 billion over the past two years. [WSJ]

If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team.

ICYMI

Highlights from our other recent research:

Market updates

Thematic research

Emerging Technology Research

Coming next week (subject to change)

ETR: Supply Chain Tech
Analyzing the performance of 2021's US VC-backed IPOs

Thanks for reading! Feel free to email us any time with feedback, questions or tips!

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PitchBook News - AI & ML is paying off in a big way

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