AIGC/big model cannot save AI financing trend

Author: Judy

Source: IT Orange

Original title: "AIGC/big model can't save AI financing trend - a small splash of enthusiasm can't disturb a big pool of water"

Image source: Generated by Unbounded AI tool

In the past six months, AIGC and large-scale models have triggered a wave of discussions. The entry of superstar entrepreneurs represented by Wang Huiwen, Wang Xiaochuan, and Li Kaifu has made the venture capital circle high for a long time.

Many media teachers came to ask IT Juzi: Is the data trend of domestic AI investment rising again?

The data shows that AIGC is really good, but the overall AI pool is not too turbulent.

In the first half of this year, IT Juzi collected a lot of investment and financing events in the AIGC (including large-scale model-related companies) track, but most of these financings were in the early seed angel stage, and the total amount could not affect the overall trend of artificial intelligence financing. In addition, due to the long investment decision-making cycle in the primary market and the delay in data disclosure, the data that can be recorded at the moment is not very large.

This article uses several data graphs to introduce the latest data trends of China's artificial intelligence track financing:

AIGC, which will be financing in 2023, still injects a fresh force into the market——

According to the separate statistics of companies with the AIGC label, the first half of 2023 ushered in a small outbreak. The financing transactions in the first half of the year were 5.89 billion yuan, and the number of incidents was 42, which far exceeded the whole year of previous years.

New things are worth looking forward to.

Let's turn our attention back to the financing situation of the big track of AI——

(Using a relatively strict definition of artificial intelligence, including basic layer, technical layer, and application layer AI enterprises)

Since 2012, China's primary market, that is, the total financing amount of AI companies from start-up to pre-listing has reached 786.2 billion yuan, the number of transactions has been 5423, and the number of financing companies has reached 2000.

AI investment and financing began in 2017 and 2018. At that time, the first batch of artificial intelligence companies such as SenseTime, Megvii, Yuncong, Geling Shentong and other well-known unicorns gained the attention of the capital market and intensive financing. .

The peak point of the outbreak will be in 2021. On the one hand, the previous AI technology companies have reached a mature stage, and the amount of financing has increased; large-scale financing. In that year, the investment and financing transactions in China's AI field reached 225.18 billion yuan.

In 2022, following the overall downward trend of the primary market, the amount and quantity of AI investment and financing will be halved. In the first half of 2023, despite AIGC, large-scale models and other market hotspots, AI investment and financing data has not picked up yet.

Judging from the monthly data from 2021 to the present, AI investment and financing in the primary market is also fluctuating downward.

Changes in round distribution can see the overall investment maturity of AI companies——

In 2019 and before, the proportion of China's AI early investment and financing (A round and before) was more than 64%, and it has only dropped to less than 60% in recent years, and the proportion of investment in the growth stage has begun to increase. The subtle change is that in the first half of 2023, the proportion of early investment will rise again, increasing to about 63%-the impact of the financing of start-up AIGC-related companies on the market has a little sense of presence here.

In terms of the financing currency of domestic AI companies, the number of RMB transaction events is much larger than that of the US dollar, but in terms of the total amount of financing transactions, the US dollar can surpass the RMB. The average single ratio for US dollar transactions was 490 million yuan, while the average for RMB transactions was 0.8 billion yuan.

Observing the changes in currencies, the number of renminbi has always far exceeded that of the US dollar. In terms of amount, during the boom period of AI investment in 2018 and 2021, the total amount of transactions in US dollars will exceed that in RMB. By 2022 and 2023, the total amount of RMB investment and financing will steadily exceed that of the US dollar.

AI companies with a high degree of innovation, long R&D investment cycle, and long profit expectations are relatively more suitable for US dollar funds, but the current capital market is more concentrated in RMB fundraising, and the Science and Technology Innovation Board is open to high-tech companies. Make RMB transactions in AI transactions more common.

The basic layer of AI includes subdivisions such as chips, data platforms, sensing systems, and computing power. The technical layer includes AI basic technical capabilities such as computer vision, speech semantic recognition, and deep learning. The application layer includes smart manufacturing, smart medical care, and smart Robots, smart cars, smart customer service, etc. are companies that explore in depth in different scenarios.

In terms of the proportion of investment in AI in the primary market, application-level companies that are closer to commercialization have always received the most investment favor. The proportion is always close to 50%.

For the basic layer, starting from 2021, the proportion will increase to more than 20%, and it will be relatively stable.

From the perspective of subdivided fields, computer vision and images, deep learning, machine learning, and natural language processing are in the forefront all year round;

The tracks of application layers such as intelligent robots, intelligent driving, and intelligent medical care continue to improve;

The computing power, AI chips, and sensor systems at the basic layer have improved rapidly in the past two or three years.

To sum up, starting from 2017, China’s artificial intelligence primary market investment has been favored by a wave of general technology companies, followed by a large number of application companies in different directions. Basic-level companies with high barriers to entry will not begin to receive major capital injections until after 2021.

From the perspective of overall primary market investment and financing, artificial intelligence has always been a relatively stable financing track. Although there are ups and downs, the fluctuations are much smaller than other tracks.

After several years of investment, there are currently about 60 AI companies that have entered the secondary market and are listed in various places, such as SenseTime, Cambrian, United Imaging, Tuya Smart, Yuntian Lifei, Yuncong Technology, and Innovation Qi. Zhi and so on, it can be regarded as a small achievement. However, the valuation/market value inversion phenomenon caused by the difference in the valuation logic of the primary and secondary markets cannot be ignored.