Game Changers 2018Emerging trends to watch and high-momentum startups with world-changing potential. The technology market intelligence platform. CB Insights software lets you predict, discuss, and communicate emerging technology trends using data in ways that are beyond human cognition. 2 A FEW OF OUR HAPPY CUSTOMERS The most publicly reference-able customers of anyone in the industry “We use CB Insights to find emerging trends and interesting companies that might signal a shift in technology or require us to reallocate resources.” Beti Cung, Corporate Strategy, Microsoft See what other customers have to say at http://www.cbinsights.com/customer-love December 12 – 13, 2017 | San Francisco, CA A-ha! is a gathering of Fortune 1000 executives, investors, academics, and startup founders discussing the next wave of ideas and technologies that will shape our world. SPEAKERS INCLUDE Daymond John Liza Landsman Mudassir Sheikha Benedict Evans The Shark Group Jet.com Careem Andreessen Horowitz Star of ABC’s Shark Tank President Co-founder & CEO Partner and CEO Sold to Walmart for $3.3B MENA’s $1.2B Unicorn “Working Out What’s Happening Next” at a16z FUBU Founder/CEO Table of Contents 13 2018 Game Changers 17 Company Deep Dives 68 Appendix & Methodology 6 "Most of the big breakthrough technologies seem crazy at first... It has to be a radical product. It has to be something where, when people look at it, at first they say, I don’t get it, I don't understand it…" Marc Andreessen Andreessen Horowitz 7 Defining Game Changers /ɡām - CHānjər/ noun An event, idea, or procedure that effects a significant shift in the current manner of doing or thinking about something. A newly introduced element or factor that changes an existing situation or activity in a significant way. Our selected startups are high-momentum companies pioneering technology with the potential to transform society and economies for the better. 8 2018 Game Changer categories Neurotechnology Regenerative Medicine Synthetic Animal Products Visualizing, improving, and 3D printing and engineering organs, Startups offering lab-grown animal repairing brain functionality cells, and tissues products from food to clothing Synthetic Agriculture AI Chips Massive Simulations Advanced technologies for Startups developing processing The creation of simulated worlds improving plant health and crop units for AI applications for predicting real-world outcomes yield Intelligent Public Safety Autonomous Construction Rocket Launchers The future of surveillance, crime Robotics and automation Startups re-inventing the way prevention, and emergency equipment for the construction rockets-to-space are built and response industry flown Extreme Logistics Delivery in places requiring tech to compensate for lack of infrastructure 9 2018 Game Changers Neurotechnology Regenerative Medicine Synthetic Animal Products Synthetic Agriculture AI Chips Massive Simulations Intelligent Public Safety Autonomous Construction Rocket Launchers Extreme Logistics 10 Most active investors in Top investors backing game-changing companies game changers Firms backing 2 or more unique game changer startups Over 180 unique investors backed this year’s cohort of game changers. Topping the list was Andreessen Horowitz, Data Collective, IndieBio, NEA, Sequoia, and SOSV, with investments to 3 unique game changers. In total, 21 investors backed 2 or more of these companies. With 20 backers, Zipline International has the most investors. 11 12 Neurotechnology Visualizing, improving, and repairing brain functionality 13 "The study of the mind and brain is the last frontier in science. Although the field has made enormous progress over the past several decades, understanding of the basic principles of thought and brain function are still far more unknown than known.” Michael Tarr Former co-director of Carnegie Mellon's Center for the Neural Basis of Cognition 14 BLOCK CHRONIC PAIN Neuros Medical's technology delivers high-frequency stimulation to sensory nerves in the peripheral nervous system to block chronic pain. The system consists of an electrode placed around a peripheral nerve and is powered by an implantable pacemaker-size generator. The company is focused on the elimination of chronic pain in a variety of conditions, including amputation pain, post-surgical pain, migraine, and trigeminal neuralgia. Select Investors: US Department of Defense, Boston Scientific Corporation, US Venture Partners 15 HELP PARALYZED PATIENTS Synchron is a medical device company developing an “endovascular neural interface” called the Stentrode – an implantable brain device to achieve direct brain control of assisted technologies. The technology platform is being developed to help paralyzed patients facilitate control of external devices such as robotic limbs, computers, and exoskeletons by translating brain activity into physical movement. Select Investors: US Department of Defense, DARPA, Neurotechnology Investors 16 PREVENT SEIZURES NeuroPace offers an implantable device called the RNS System, for the treatment of neurological disorders. The company's initial focus is the treatment of epilepsy to prevent seizures. The device recognizes electrical patterns specific to your brain, identifies unusual activity indicative of a seizure and sends brief pulses to instantly normalize your brainwaves. Select Investors: Johnson & Johnson Innovation, New Enterprise Associates, KPCB 17 Regenerative Medicine 3D printing and engineering organs, cells, and tissues 18 "This is going to be the future of medicine, where stem cells and other types of cells can literally be the treatment of devastating chronic and untreatable diseases.” Adeeb Al-Zoubi Clinical Assistant Professor of Regenerative Medicine at The University of Illinois 19 PRINT ORGANS ON DEMAND Prellis Biologics engineers human tissues and organs using laser-based 3D printing technology. The company can create single layers of cells and build tissue scaffolds for organs on-demand in a laboratory setting. The company aims to address organ donor shortage and provide human tissues to streamline the development of therapeutics. As its first product, Prellis Biologics is developing insulin- secreting units of the pancreas to help people with Type 1 Diabetes. Select Investors: True Ventures, SOSV, Civilization Ventures, 415 Ventures, IndieBio 20 TRANSPLANT BETWEEN SPECIES eGenesis is a life sciences company leveraging genome editing technology known as CRISPR to deliver safe and effective human-transplantable cells, tissues and organs. The company is developing a platform using xenotransplantation – the process of grafting or transplanting organs or tissues between members of different species, primarily pigs. eGenesis’ mission is to address the shortage of organs available for transplantation. The company claims that using its technology, one animal can save an estimated eight lives. Select Investors: Khosla Ventures, Alexandria Venture Investments, Uprising 21 MANUFACTURE CELLS BlueRock harnesses induced pluripotent stem cell (iPSC) therapies to use healthy cells to cure a range of diseases. Using this Nobel Prize-winning technology, the company can manufacture virtually unlimited quantities of pure healthy cells. The company is initially targeting severe brain and heart conditions such as Parkinson’s Disease and congestive heart failure. Select Investors: Bayer, Versant Ventures 22 Synthetic Animal Products Startups offering lab-grown animal products, from food to clothing 23 Current livestock production is unsustainable Source: World Resources Institute 24 REPLACE TRADITIONAL MEAT Memphis Meats develops technology to engineer real meat without animals, by farming animal stem cells in a lab without the need to feed, breed, and slaughter livestock. The company claims its technology requires up to 90% less greenhouse gas emissions, land, and water than conventionally produced meat. Scaling up for mass production, Memphis Meats hopes its products will replace traditional meat altogether. Select Investors: Bill Gates, Cargill, Richard Branson, Kimbal Musk, Draper Fisher Jurveston $17M 25 PRODUCE CULTURED LEATHER Modern Meadow applies advances in tissue engineering to produce cultured leather that requires no animal slaughter and much lower inputs of land, water, energy and chemicals than conventional methods. The process is called biofabrication. Starting with living cells, Modern Meadow can grow collagen, the same natural protein found in animal skin, assemble it into a sheet of synthetic leather, and then finish the aesthetics with a tanning process. Select Investors: Sequoia Capital, ICONIQ Capital, Temasek Holdings, Tony Fadell 26 HARVEST FISH STEM CELLS Finless Foods is an early-stage biotechnology company that harvests fish stem cells from living fish to produce lab-grown fish meat for human consumption. The company’s goal is to make seafood more sustainable and healthier compared to today’s conventionally caught and commercially farmed seafood. Select Investors: IndieBio, SOSV 27 Synthetic Agriculture Advanced technologies for improving plant health and crop yield 28 By 2050, global demand for food could increase up to 98%, and synthetic agriculture could help satisfy demand. Source: Harvard Business Review / The Journal of the International Association of Agricultural Economists 29 NATURALLY PROMOTE PLANT HEALTH Indigo Agriculture is developing microbial solutions to naturally promote plant health and improve agricultural production. The company uses genomic sequencing and computational bioinformatics to predict which microbes are most beneficial to plant health. Indigo has built a platform for product discovery and generated a pipeline of candidates in crops, including corn, soy, wheat, cotton and vegetables. Select Investors: Flagship Pioneering, Baillie Gifford & Co., Alaska Permanent Fund, Activant Capital Group 30 IMPROVE CROP GENETICS Benson Hill Biosystems leverages cloud biology, comprised of cloud computing, big data analytics, and plant biology, to enable companies to improve crop genetics. The company uses machine learning to predict which seeds will produce a desired trait. The platform uses an array of tools, from breeding, to genome editing, to transgenics. Select Investors: National Corn Growers Association, Alexandria Venture Investments 31 CURE DISEASES IN CROPS Inocucor offers a process that uses fermentation and microbe combinations to enable plants to reach their full growth or yield potential. The process uses microbiological techniques to isolate individual microbial strains based on their compatibility with one another and other factors. The company has identified and field tested 11 microbial strains for use in farms and greenhouses, and is currently working on biological formulas to cure diseases in crops such as strawberries, tomatoes, and potatoes. Select Investors: TPG Alternative & Renewable Technologies, Desjardins, Cycle Capital 32 AI Chips Startups developing processing units for AI applications 33 Industry applications of AI coming into focus AI is spreading across 2013 – 2017 YTD (11/14/2017) industries Interest in applying AI Recent interest in industry applications for AI, based on CB across industries means Insights Trends Tool AI-enablement companies are poised to accelerate the future. CB Insights Trends mines a massive corpus of media articles to enable a data-driven, real-time method to discover, predict, and plot the arc of rising expectations and excitement for emerging technologies. 34 EXPLORE MACHINE INTELLIGENCE Graphcore sells an intelligent processing unit (IPU) designed to lower the cost of AI applications in cloud and enterprise data centers. The company offers a programming framework for research teams and for customers working on commercial AI deployments. Graphcore’s chips are reportedly up to 100 times faster than traditional processing units and could someday help power the machine learning algorithms behind intelligent connected devices, self-driving cars, and robotics. Select Investors: Samsung Catalyst Fund, Dell Technologies Capital, Robert Bosch Capital 35 PUT AI IN EVERYDAY DEVICES Mythic offers a chip for enabling local AI, to turn everyday devices into intelligent systems without leveraging the cloud. Mythic’s chips work in tandem with the company’s software to make devices see, hear, and process the world. Target markets include smart home, healthcare systems, and security and monitoring for commercial and home use, and drones for industrial applications. Mythic’s platform targets devices that previously lacked the computing power, battery life, and reliable cloud connectivity to support decision making with AI. Select Investors: Data Collective, AME Cloud Ventures, Lux Capital, Draper Fisher Jurveston 36 SIMULATE HUMAN NERVE CELLS Cambricon (寒武纪) is developing a brain-inspired processor chip that simulates human nerve cells and synapses to conduct deep learning. The company’s chips can enable AI for computer vision, autonomous driving and flying, security monitoring, speech recognition, and more. Cambricon also offers an AI software platform for developers. Cambricon says its chips double the performance of a conventional GPU while also consuming less power. Select Investors: Alibaba Entrepreneurs Fund, Lenovo Ventures Group, Yonghua Capital 37 Massive Simulations The creation of simulated worlds for predicting real- world outcomes 38 What are the advantages of massive simulations? 1. Make better decisions 2. Introduce and test variables 3. Examine edge cases 4. Limit impact of mistakes 39 BUILD SIMULATED WORLDS Improbable Worlds is developing an operating environment that allows user to build simulated worlds that can be run in real time, simulating the behaviors and interactions of millions of entities. Improbable is focused on game development, but has implications for industries ranging from commerce to security, enabling organizations to understand the consequences of their choices before executing in the real world. Select Investors: Temasek Holdings, Horizons Ventures, Andreessen Horowitz 40 SIMULATE AGRICULTURAL OUTCOMES CiBO Technologies is a sustainable agriculture company that simulates agricultural outcomes. The company’s platform aggregates historical plant, soil, environmental, nutritional, and ecological data to provide land-use simulations. CiBO offers a distributed database for agronomically-relevant computations and analyses, detailed weather simulations, and more. Select Investors: Flagship Pioneering 41 TEST AUTONOMOUS CARS RightHook allows automotive, aviation, robotics, and other industries rapidly adopting autonomous applications to safely test their products in simulated environments. The company offers several products, including a suite for creating HD maps and traffic simulations, as well as grid and cloud management for testing autonomous cars. Because testing self-driving cars in the real world is potentially dangerous, further development of autonomous technologies will rely on simulated test environments. Select Investors: Tencent Holdings, First Round Capital, Fontinalis Partners 42 Intelligent Public Safety The future of surveillance, crime prevention, and emergency response 43 Public safety needs a tech makeover TSA airport security failed ‘in the ballpark’ of 80 percent November 9th, 2017 44 SECURE THE PERIMETER Evolv Technology creates both hardware and software for physical security. The company offers a security gate which can conduct rapid body scans of people without requiring them to stop or slow down. The company's imaging sensor is designed to detect anomalies on a person, like a bomb or firearms they may be trying to carry into a venue. Evolv can also work with cameras and facial recognition software to identify people entering a venue, and check them against relevant databases. Select Investors: Gates Ventures, In-Q-Tel, General Catalyst, Data Collective 45 EXPLORE HIGH THREAT ENVIRONMENTS Shield AI builds artificially intelligent systems for protecting law enforcement officers, emergency first responders, and civilians. The company offers a quadcopter that autonomously explores high threat environments ahead of personnel and can also conduct searches without a radio frequency link, be flown manually if needed, and learns and improves over time. Shield’s computer vision software works in conjunction with cameras and trained neural networks to identify individuals, objects, and activities of interest. Select Investors: Andreessen Horowitz, Homebrew 46 DETECT VEHICULAR SECURITY THREATS UVeye is building computer vision and machine learning technology to help detect vehicular security threats. By scanning the undersides of passing vehicles, UVeye flags anomalies that indicate a car has been modified for weaponization and/or smuggling. UVeye’s under-vehicle inspection system leverages high-resolution 3D cameras and image processing algorithms to identify car-housed explosives, concealed weapons, and other contraband. License plate numbers can also be captured for database comparisons. Select Investors: Ahaka Capital, SeedIL 47 Autonomous Construction Robotics and automation equipment for the construction industry 48 Shortage of manual labor in construction Source: Forbes & Commercial Construction Index 49 AUTOMATE EARTH MOVING Built Robotics offers technology to automate earth moving and construction work. The company is leveraging sensors from self-driving cars and retrofitting them into equipment for the job site, as well as developing autonomous software designed specifically for construction tasks related to excavating and grading for building foundations. Solutions like those offered by Built could address a chronic labor shortage of construction workers, boost productivity, and prevent work related injuries. Select Investors: New Enterprise Associates, Great Oaks Venture Capital 50 AUTOMATE MASONRY Construction Robotics is developing hardware and software for the construction industry, starting with SAM100, an autonomous bricklaying robot used for masonry. Combined with SAM100, the company’s 3D brick-mapping software helps masons lay out wall designs and account for onsite variations as well as capture real-time data for continuous improvements. The company’s products aim to help masons be more productive, reduce repetitive-motion injuries, and build more lasting buildings. Select Investors: National Science Foundation under SBIR Phase I and II grants 51 PRINT WHOLE BUILDINGS Apis Cor is focused on making building construction fast, efficient, and high-quality by delegating work to smart machines. The company offers a mobile construction 3D printer, which prints buildings completely on site. Apis’ mobile 3D building printer has made at least one house (within a single day) that the company claims is durable enough to last up to 175 years. Select Investors: Rusnano, Sistema 52 Rocket Launchers Startups re-inventing the way rockets-to-space are built and flown 53 Nanosatellites are taking off According to estimates, between 300 and 400 nano satellites (1 – 50kg) will be launched throughout 2018. By 2022, approximately 2,500 additional nano satellites will require launch based on announced plans and programs. 54 DELIVER SMALL SATELLITES Rocket Lab is building an all carbon-composite launch vehicle. The rocket is designed for the emerging small satellite market and can rapidly deliver small satellites to commercial orbits. Rocket Lab is founded on the belief that small payloads require dedicated small launch vehicles not currently offered by traditional rocket systems. Select Investors: In-Q-Tel, Lockheed Martin, Khosla Ventures, Bessemer Venture Partners 55 AUTOMATE ROCKET BUILDING Relativity Space aims to build and fly rockets with zero human labor to resupply satellite constellations. The company is creating what it calls an “evolvable product line” based around an intelligent 3D printing manufacturing system. Relativity says the system can assemble a rocket from scratch in 60 days with short lead times and at a low cost. Relativity’s goal is to create the first rocket on Mars and ultimately lay the groundwork for building industrial 3D printers that are lightweight and rugged enough to build a space colony. Select Investors: Y Combinator, University of Southern CA, Stanford, Social Capital, Philip Spector 56 DEVELOP SATELLITE MISSIONS Kubos provides open source software and hardware for developing satellite missions. The company offers developers building satellites an operating system, hardware support, and developer tools for their missions. Products include cloud-based mission control software and a test environment for flight hardware. Kubos is focused on providing an operating system for small spacecraft. The company has deals with three nanosatellite manufacturers: Pumpkin, NanoAvionics, and Innovative Solutions in Space. Select Investors: Entrenext Ventures, GGV Capital, Draper Dragon, Tim Draper 57 Extreme Logistics Tech-enabled delivery solutions for low- infrastructure areas 58 “In developing countries, lack of infrastructure is a far more serious barrier to trade than tariffs.” Joseph E. Stiglitz Columbia University professor and recipient of the Nobel Memorial Prize in Economic Sciences (2001) 59 USE UP EXCESS TRUCKING CAPACITY CargoX is a logistics company that offers cargo transportation services for shippers in the heavy duty trucking industry. The company’s machine learning technology is designed to use up excess trucking capacity by triangulating trips and taking advantage of idle and return spaces. CargoX aims to cut down CO2 emissions and reduce the amount of empty trucks on the road. The company is currently focusing on Brazil, where few railroads in the country mean that a high proportion of the country’s freight gets shipped by trucks. Select Investors: Goldman Sachs, Qualcomm Ventures, Soros Brothers Investments, Agility 60 USE A PHONE AS AN ADDRESS The Fetchr app aims to solve the logistical problem of lacking a physical address, which can restrict the proliferation of delivery services, especially for ecommerce, in places like the Middle East and North Africa, by allowing users to use a phone as a physical address. Using Fetchr, drivers arrive to a customer's exact location via a phone to pick up a package and deliver it to the recipient. Select Investors: BECO Capital, Winklevoss Capital, Endeavor Catalyst, New Enterprise Associates 61 GET BLOOD ON-DEMAND Zipline International builds autonomous fixed-wing medical drones and runs airborne delivery services, dropping medical supplies to clinics or hospitals in areas that aren't accessible by land. The service lets health workers at remote clinics and hospitals text orders to Zipline for on-demand medical products such as blood. Zipline’s deliveries are often used for transfusions during surgeries or complicated childbirths, or to treat victims of malaria. The company is operating in partnerships with the Rwandan and Tanzanian governments. Select Investors: Stanford University, Andreessen Horowitz, Google Ventures, Sequoia Capital 62 Game changers appendix Additional company data 63 Fueling up for growth , Game Changers annual 2013 – 2017 YTD (11/13/17) financing history Year to date (11/13/17), the 2018 Game Changer startups have seen 31 deals worth nearly $1.29B in funding. At the current run rate, 2017 deals and dollars are on track to reach a high of 36 deals worth nearly $1.5B, bringing total disclosed equity investment since 2013 to over $2B and over 80 deals. 64 Changing the world International game 30 companies headquartered in 7 countries changers 22 of the 30 game changers are based in the US or have moved to the US. However, 6 other countries are home to game changer companies: Brazil, Canada, China, Russia, the UAE, and the UK. 65 Mosaic money score comparison Game changers are Game Changers vs. all companies high-mosaic companies CB Insights’ data-driven Mosaic Money metric assesses financial signals including funding recency, total amount raised, and investor quality to evaluate private company health. On average, our list of game changers had Mosaic Money scores 1.9x those of all tech companies. 66 Game changers expert collection Track all of the Game Changer startups in this presentation and many more on our platform using CB Insights’ Collections. The expanded list of startups includes high- momentum companies pioneering technology with the potential to transform society and economies for the better. 67 Our methodology How the 10 categories were selected: We used the CB Insights Trends tool, which mines and organizes millions of media articles to quantify media attention to tech trends, to identify game changing tech trends. How the 30 companies were selected: We used CB Insights Company Mosaic, which tracks private company health using signals including recency of financing, total raised, and investor quality, to identify high- momentum/quickly growing companies within our categories. We’ve gathered this data via our machine learning technology (dubbed The Cruncher) as well as via several thousand direct submissions from firms and individual professionals using The Editor. The CB Insights Mosaic page walks through the factors considered in the algorithm in greater detail. 68 Questions? @AltmanW @JudWaite
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