PitchBook Previews a New Machine Learning Intelligent Application that Predicts Company Outcomes and Finds that late stage IA40 companies are 60% more likely to IPO than the average late-stage company
Madrona, a leading venture investor in artificial intelligence and machine learning companies, today announced a partnership with PitchBook to power the 2022 Intelligent Applications 40, #IA40, and released data based on the 2021 list. Leveraging PitchBook’s industry-leading data as well as a new machine learning model, PitchBook and Madrona provide differentiated analysis on the market outlook for intelligent applications.
According to PitchBook, IA40 companies have, in aggregate, raised over $3 billion in new rounds of financing since the launch of the inaugural IA40 list in late November 2021. Additionally, despite the current market turmoil, these companies have announced over $848 in new venture financing in the second quarter – further reinforcing the promising market outlook for intelligent applications long term. The IA40 companies will need to navigate the same challenging market conditions faced by all VC-backed startups, but they show promise when applying the PitchBook predictive algorithm:
- Late stage IA40 companies are 60% more likely to IPO than the average company at that stage.
- Early Stage IA40 companies are expected to deliver 40% higher returns to investors in the upcoming round of fundraising than other early stage companies.
“We are excited to bring PitchBook on board as we look to the #IA40 2022 to be released this fall. Madrona has been investing in the founders and teams building intelligent applications for over ten years. We believe machine intelligence is the future of software,” commented Ishani Ummat, Investor at Madrona. “What better way to help generate a meaningful list of intelligent app companies than to leverage machine learning and predictive software in the process?”
Madrona launched the inaugural IA40 with support from Goldman Sachs and 50 of the nation’s top venture firms in the fall of 2021. A ranking of the top 40 intelligent application companies, the list spans early to late-stage private companies across all industries. Intelligent apps harness machine learning to process historical and real-time data to create a continuous learning system. Companies on the inaugural list include Starburst, Gong, Hugging Face, OctoML, SeekOut and Abnormal Security. See the full list at www.ia40.com
PitchBook is well-known for delivering timely, comprehensive, and transparent data on private and public equity markets collected through its proprietary information infrastructure. In addition to distributing data and research, PitchBook’s Institutional Research Group also develops tools and models that help clients make more informed investment and business development decisions. The algorithm powering the 2022 IA 40 list is part of a larger initiative that will enable PitchBook users to predict liquidity events for private companies and will be launched later this year.
“At PitchBook, we’re constantly expanding our data and research across all asset classes and building tools to actively surface insights for our clients. Combining our data and insights with machine learning capabilities, we’re in a unique position to predict outcomes and enhance decision-making for our core clients. Our work with Madrona and the IA 40 is a powerful example of the possibilities associated with intelligent applications and applying the technology to lead to better outcomes for our industry,” commented Daniel Cook, CFA and Head of Quantitative Research at PitchBook.
Read more on our blog about the partnership.
Interested in the IA40 founders and companies? Check out our podcasts with founders from Starburst, RunwayML, Hugging Face, OctoML, and SeekOut, with more on the way! https://www.madrona.com/category/podcast/
For more such updates and perspectives around Digital Innovation, IoT, Data Infrastructure, AI & Cybersecurity, go to AI-Techpark.com.
