Market Insights

Machine Learning Bonanza: Friday Dealbook for 10/25/2019

October 25, 2019

This week was a machine learning bonanza, with Signal AI bringing in $25 million for business intelligence, Upstream SEcurity with $30 million for autonomouisvehicle cybersecurity, and Speechmatics raising GBP£6.36 million (US$8.2 million) for voice recognition. All three companies are harnessing the power of data for their various platforms with machine learning at their cores, demonstrating the value and power of data analysis.

 

The Top Deals Covered by OWI this Week

 

Signal AI \ signal-ai.com \ Founded in 2013

Developer of a reputation business intelligence and media monitoring platform designed to transform information into accessible and actionable insight. The company’s platform offers a machine learning-powered topic classification system that lets users aggregate, analyze and make sense of the world’s data which includes news, social media, and regulatory data, enabling businesses to get access to actionable insights to make smarter and faster decisions.

The company raised $25 million of Series C venture funding in a deal led by Redline Capital Management on October 22, 2019. MMC Ventures, Hearst Ventures and GMG Ventures also participated in the round. The funds will be used by the company to further branch out into new use cases, as well as accelerate its rapid growth in the US and cement its recent launch in the APAC market.

 

Upstream Security \ upstream.auto \ Founded in 2017

Developer of a cloud-based cybersecurity platform intended to protect the technologies and applications of connected and autonomous vehicles. The company’s cloud-based cybersecurity platform leverages big data and machine learning, utilizing a layer-7 security gateway and analytics engine, enabling the automotive industry to get real-time visibility on security, privacy and fraud alerts.

The company raised $30 million of Series B venture funding in a deal led by Renault Venture Capital and Renault-Nissan-Mitsubishi on October 21, 2019. Volvo Group Venture Capital, Nationwide Ventures, Hyundai Motor, Glilot Capital Partners, Maniv Mobility and CRV also participated in the round. The funds will be used to expand operations and the company’s business reach.

 

Speechmatics \ speechmatics.com \ Founded in 2006

Provider of automated speech recognition platform intended for analysis, discovery and accessibility. The company’s platform uses machine learning technology to upload transcripts and media files to receive a time-stamped document in any languages, enabling businesses to generate data about customers and employees which is harnessed to improve a process, efficiency and benefit the bottom line

The company raised GBP 6.36 million of Series A venture funding in a deal led by IQ Capital Partners and AlbionVC on October 20, 2019, putting the pre-money valuation at GBP 30 million. Other undisclosed investors also participated in this round. The funds will be used to enable product development and geographical expansion with new offices being opened shortly in Denver USA, Brno in Czech Republic and Chennai in India as well as to double the company’s headcount from 50 to 100 and global growth ambitions.

 

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Investor Highlight

 

MMC Ventures \ mmcventures.com \ Founded in 2000

Description of Investor

MMC Ventures is a research-led venture capital firm based in London, United Kingdom. The firm has been backing early-stage, high-growth technology companies since 2000. The firm’s research function provides the Firm with an understanding of emerging technologies and sector dynamics, to identify investment opportunities. The firm’s research team also supports early-stage companies through the life of the investment. The firm helps to catalyze the growth of enterprise software and consumer internet companies that have the potential to disrupt large markets.

Active Portfolio – 44

Investments (TTM) – 16

Med. Round Amount – $3.92M 

Med. Valuation – $14.64M

# of Exits – 33

Deal History

In the past year, MMC Ventures has invested in the following 5 identity companies:

Growth Intelligence

Omni:us

Red SIft

Senseon

Signal AI

 

*Source: PitchBook Data Inc. with proprietary keyword searches set by OWI Analysts