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DEEP LEARNING IS THE LATEST BUILDING BLOCK OF THE A.I. REVOLUTION WITH THE POTENTIAL TO DEVELOP NUMEROUS DISRUPTIVE APPLICATIONS.
Deep Learning is the latest newcomer in the Artificial Intelligence family. First (re)emerging in the industry around 2012, Deep Learning has really been on all VCs’ lips for the last 18 months, and on the agenda of technology giants (GAFA, Microsoft, IBM, Baidu, etc.). With €717m raised in 2016 i.e. 40% of Artificial Intelligence funding (vs. €316m, i.e. 16% in 2015), 2016 was clearly the year of take-off for Deep Learning start-ups
Yet, Deep Learning is not a new topic and has been discussed since the early 1970’s as a sub-field of Machine Learning and more broadly of Artificial Intelligence, with the idea to imitate through algorithms the way the human brain works with neural networks & complex feedback loops. Then an intellectual vision – or even a fantasy back in the 70s – Deep Learning is now an emerging disruption:
WHY NOW?
We believe 3 major factors that were limiting deep learning’s development so far changed drastically and are now favoring its explosion:
MATURATION OF A BREAKTHROUGH TECHNOLOGY
However, times are still early, and some level of caution needs to be taken – Artificial Intelligence has already gone through several “winters” during its long history. It is a complex topic and it can be sometimes hard to sort out who is really leveraging the full extent of the power of the technology, and who is “Deep-Learning-washing”.
In the recent years, and even more particularly in 2016, lots of start-ups using Deep Learning were launched and funded by VC funds (but mostly seed round or Serie A), but a very few minority have reached the commercial phase. There was also some activity on the M&A side, but most companies were acqui-hired (by tech giants mostly) before having tested their product on the market.
2017-18 WILL THEN BE CRUCIAL YEARS FOR DEEP LEARNING AND WILL DETERMINE:
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About Clipperton
Clipperton is a European independent corporate finance advisory firm exclusively dedicated to the Technology space, advising innovative companies on M&A transactions, debt financings and equity offerings. With offices in London, Berlin, and Paris and an international reach, Clipperton is a European leader in Technology financial advisory. Over the past 15 years, the team has successfully completed more than 200 high profile transactions globally.