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Brent: Today’s Big One happens to be the biggest VC funding event so far this year. SparkCognition, the Austin-based AI startup, raised a big, $32.5M Series B round led by a couple big time players — Verizon Ventures and Boeing’s HorizonX.
And it’s relatively clear why Verizon and Boeing would want to back the Austin company. SparkCognition, founded in 2014, is arguably Austin’s leading AI company, and it’s using machine learning to monitor, analyze and predict system failures and cybersecurity breaches for big time companies working in sensitive industries, including aerospace, defense, telecommunications and more.
Plus, everyone wants in on the next leap in AI innovations. SparkCognition’s funding comes as VCs, especially those extending from massive companies like Boeing, Verizon, Google, etc, are making increasingly aggressive investments in machine learning and artificial intelligence.
For example, about a month ago CognitiveScale, a fast-growing startup in Austin, raised an additional $15M from Norwest Venture partners, Intel Capital, Microsoft Ventures, The Westly Group and USAA. And Austin AI company Mythic raised $9M in March from Lux Capital, Data Collective and AME Cloud Ventures.
It’s essentially an arms race where major corporations want to acquire the best AI companies to integrate into their products and systems before competitors get a leg up. Meanwhile, VCs and other investors know that AI startups are being acquired at a rapid pace, which means big returns on a pretty short timeline.
One theme here: There aren’t any Austin VCs leading these rounds, which isn’t to say Austin angel investors…
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