With the growing number of artificial intelligence and machine learning startups in the Seattle area, it seems local venture capital firms targeting the space have options.
Ishani Ummat, an investor at Seattle-based Madrona Venture Group, said there are "absolutely" enough local startups focused on AI and ML to satisfy Seattle-area investors. It's a space that has seen major funding recently, as local companies like Seattle-based OctoML and Bellevue-based SeekOut have raised major rounds in recent months.
"We hypothesize that you won't see applications in the five- to 10-year timeframe that don't include artificial intelligence," Ummat said. "That's a big statement, but I think that's going to be table stakes."
In addition to Madrona, Seattle-based firm Flying Fish Partners is also targeting artificial intelligence companies. The firm closed a $70 million fund this month. Bellevue-based venture capital firm Fuse, meanwhile, has invested in AI startups like Seattle-based voice technology company WellSaid Labs and the Seattle-based video company Pictory.
Madrona worked with Goldman Sachs to release a list in November of top AI and ML startups called the Intelligent Applications 40, or IA40. The firm announced Tuesday it is partnering with Seattle-based financial data firm PitchBook Data to collect new data on last year's list, and PitchBook's technology will power better judging for this year's list, set to come out this fall. The companies on last year's list have raised more than $3 billion total since the release of the list, according to PitchBook.
SeekOut, OctoML and WellSaid Labs all made last year's IA40 list. Seattle-based customer data startup Amperity also made the list.
Ummat said Madrona draws a distinction between AI and intelligent applications. Whereas AI is an important technology, she added, intelligent applications are end tools that use AI for better results.
As for how the Seattle area compares with other major tech hubs like the Bay Area or Boston, Ummat said the local ecosystem thrives because of big institutions like the Allen Institute for AI. The University of Washington has also spawned a wave of startups, and a fund called Pack Ventures that targets founders with UW ties launched in January. Plus, according to Ummat, big companies like Amazon and Microsoft also mold future startup founders.
"I think that's a super exciting development for Seattle specifically," Ummat said. "We have a lot of that talent locked up here. The tipping point is just starting where they're going to start their own companies. Big data, cloud infrastructure, there's a lot of work being done here in Seattle around those areas."
