The AI industry continues to mature as venture investment increased significantly in 2021 and exit values for venture-backed AI companies significantly outpaced venture investment in AI companies in 2021.  According to PitchBook, AI companies have produced over $166 billion in value through IPOs and M&A through the end of Q3 2021, more than tripling 2020’s disclosed deal value and far exceeding the $83.7 billion raised by AI companies this year in venture financings (which, in itself, represents an over 100% increase in the amount raised versus 2020).  This sum also exceeds aggregate venture investment in AI companies from 2018 to 2020.  While most of that exit activity by count has been through M&A, the lion’s share by value has been through IPOs.  Much of that value is concentrated in deals with a value of over $1 billion, as there were over 26 such deals in that period that accounted for over $153 billion in value.  Given the continued interest across industries and verticals in this space, the sector is positioned for a strong 2022 in both investment and exit activity.

This post is a part of a series on trends in the artificial intelligence space for 2022, authored by MoFo lawyers.

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