natural language processing

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AI startup Sorcero secures $10M for language intelligence platform

Sorcero announced Thursday a $10 million Series A round of funding to continue scaling its medical and technical language intelligence platform.

The latest funding round comes as the company, headquartered in Washington, D.C. and Cambridge, Massachusetts, sees increased demand for its advanced analytics from life sciences and technical companies. Sorcero’s natural language processing platform makes it easier for subject-matter experts to find answers to their questions to aid in better decision making.

CityRock Venture Partners, the growth fund of H/L Ventures, and Harmonix Fund co-led the round and were joined by new investors Rackhouse, Mighty Capital and Leawood VC, as well as existing investors, Castor Ventures and WorldQuant Ventures. The new investment gives Sorcero a total of $15.7 million in funding since it was founded in 2018.

Prior to starting Sorcero, Dipanwita Das, co-founder and CEO, told TechCrunch she was working in public policy, a place where scientific content is useful, but often a source of confusion and burden. She thought there had to be a more effective way to make better decisions across the healthcare value chain. That’s when she met co-founders Walter Bender and Richard Graves and started the company.

“Everything is in service of subject-matter experts being faster, better and less prone to errors,” Das said. “Advances of deep learning with accuracy add a lot of transparency. We are used by science affairs and regulatory teams whose jobs it is to collect scientific data and effectively communicate it to a variety of stakeholders.”

The total addressable market for language intelligence is big — Das estimated it to be $42 billion just for the life sciences sector. Due to the demand, the co-founders have seen the company grow at 324% year over year since 2020, she added.

Raising a Series A enables the company to serve more customers across the life sciences sector. The company will invest in talent in both engineering and on the commercial side. It will also put some funds into Sorcero’s go-to-market strategy to go after other use cases.

In the next 12 to 18 months, a big focus for the company will be scaling into product market fit in the medical affairs and regulatory space and closing new partnerships.

Oliver Libby, partner at CityRock Venture Partners, said Sorcero’s platform “provides the rails for AI solutions for companies” that have traditionally found issues with AI technologies as they try to integrate data sets that are already in existence in order to run analysis effectively on top of that.

Rather than have to build custom technology and connectors, Sorcero is “revolutionizing it, reducing time and increasing accuracy,” and if AI is to have a future, it needs a universal translator that plugs into everything, he said.

“One of the hallmarks in the response to COVID was how quickly the scientific community had to do revolutionary things,” Libby added. “The time to vaccine was almost a miracle of modern science. One of the first things they did was track medical resources and turn them into a hook for pharmaceutical companies. There couldn’t have been a better use case for Sorcero than COVID.”

 

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With more cash and a launch, Vannevar Labs is reconnecting Silicon Valley to its defense industry roots

Silicon Valley was once one of the most productive regions in the country for the defense industry, churning out chips and technologies that helped the United States overtake the Soviet Union during the Cold War. Since then, the region has been known far less for silicon and defense than for the consumer internet products of Google, Facebook and Netflix.

A small number of startups, though, are attempting to revitalize that important government-industry nexus as the rise of China pushes more defense planners in Washington to double down on America’s technical edge. Vannevar Labs is one of this new crop, and it has hit some new milestones in its quest to displace traditional defense contractors with Silicon Valley entrepreneurial acumen.

I last chatted with the company just as it was debuting in late 2019, having raised a $4.5 million seed. The company has been quiet and heads down the past two years as it developed a product and traction within the defense establishment. Now it’s ready to reveal a bit more of what all that work has culminated in.

First, the company officially launched its Vannevar Decrypt product in January of this year. It’s focused on foreign language natural language processing, organizing overseas data and resources that are collected by the intelligence community and then immediately translating and interpreting those documents for foreign policy decisionmakers. CEO and co-founder Brett Granberg said that the product “went from one deployment to a dozen adoptions.”

Second, the company raised a $12 million Series A investment in May from Costanoa Ventures and Point72, with General Catalyst participating. Costanoa and GC co-led the startup’s seed round.

Finally, the company has been on a hiring spree. The team has grown into a crew of 20 employees, and the firm last week brought on Scott Sanders to lead business development. Sanders was one of the earliest employees at Anduril, and had spent several years at the company. Vannevar also added to its board John Doyle, a long-time Palantir employee who was head of its national security business, according to Granberg. Today, the team is equally split between national security folks and technologists, and he says that the team is set to double this year.

Vannevar Labs

Co-founders Nini Moorhead and Brett Granberg of Vannevar Labs. Photo via Vannevar Labs.

With a few years of hindsight, Granberg says that he has refined what he considers the best model for defense tech startups to break into the hardscrabble market at the Pentagon and across Northern Virginia.

First, there needs to be incredible focus on getting access to actual end users and learning their work. The functions that defense and intelligence personnel perform are completely different from operations in the commercial economy, and trying to translate what works at a large corporation into defense is a fool’s errand. “You need to have both the DNA of understanding new technology and the DNA of deeply understanding a lot of different use cases within DoD,” Granberg said, referencing the Department of Defense.

That has directly informed how Decrypt has developed over time. “We started focusing on the counter-terrorism space, and as the government moved away from counter-terrorism, we started moving to the foreign actors that were important,” he said. “Once we have our first couple of deployments, we are able to iterate very, very quickly.”

He also strongly eschews a popular view in defense procurement circles that there are “dual-use” technologies that can be used equally well in commercial and defense applications. “Some of the most important mission problems where the government spends the most money and has the most interest,” he explained, are also contexts where commercial off-the-shelf products (dubbed COTS in the industry parlance) are least useful. He says startups targeting defense simply cannot split their bandwidth by also trying to learn commercial use cases.

In fact, he went so far to predict that “you are going to see a lot of companies that have raised a lot of money that will fizzle out in the coming years” because they just can’t nail the dual-use model well.

Second, he argues that defense tech startups need to move beyond the model that each company should work on one platform, and instead move to an organizational model where a company offers multiple products to reach scale. Each product has the potential to reach “a couple of hundred million in revenue,” according to Granberg, but it is hard to expand a company’s size if it doesn’t parallelize product development.

To that end, Granberg said that he pushes Vannevar Labs to always be exploring new product lines for growth. “Decrypt is our first product [but]10% of our energy is in new product efforts,” he said. “I can imagine when we are three to four years down the line… it might be nine-10 products.” He said that the one platform approach might have worked for Palantir, which ironically, is the major winner in the defense tech space the last few years. But newer companies like Anduril and Shield AI have been designed around product line expansion.

Finally, noting those other companies, Granberg believes there is something of a collective benefit as each startup makes headway in the defense sector. “There is this theory in our space that we don’t view ourselves as competitors — if one of us does well, we all do well,” he said. Given the varied mission requirements of different agencies and the absolute massive scale of budgets in this field, startups actually have a lot of independent terrain to explore, even if they come up against the big legacy defense contractors on a regular basis.

As for Vannevar Labs, its next goal is to turn its Decrypt product into a program of record, which would guarantee it a certain level of sales and revenue for potentially years into the future. That’s a huge bar to leap, but would be a turning point in the company’s long-term trajectory.

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Where is suptech heading?

Technology plays a huge role in nearly every aspect of financial services today. As the world moved online, tools and infrastructure to help people manage their money and make payments have burgeoned the world over in the past decade.

With much of the finance world now leveraging technology to conduct business, predict trends and deliver services, financial services regulators are also developing new technologies to monitor markets, supervise financial institutions and conduct other administrative activities. The emergence of purpose-built technologies to facilitate regulator oversight has, over the past few years, garnered its own moniker of supervisory technology, or suptech.

Interest in suptech is proliferating across the globe thanks to a diverse set of prudential and conduct regulators. A sampling of regulators developing suptech include the FDIC, CFPB, FINRA and Federal Reserve in the U.S.; the U.K.’s FCA and Bank of England; the National Bank of Rwanda in Africa; as well as the ASIC, HKMA and MAS in Asia. Several “super regulators” are also engaged in suptech efforts such as the Bank of International Settlements, the Financial Stability Board and the World Bank.

The strides in suptech demonstrate that creative thinking coupled with experimentation and scalable, easily accessible technologies are jump-starting a new approach to regulation.

In this post, we’ll examine a few core suptech use cases, consider its future and explore the challenges facing regulators as the market matures. The uses are diverse, so we’ll focus on three key areas: regulatory reporting, machine-readable regulation, and market and conduct oversight.

A quick general note: Nearly every financial services regulator is engaged in some type of suptech activity and the use cases discussed in this article are intended as a sample, not a comprehensive list.

But what exactly is suptech?

As a preliminary matter, we should quickly survey a few definitions of suptech to frame our understanding. Both the World Bank and BIS have offered definitions that provide useful outlines for this discussion. The World Bank states that suptech “refers to the use of technology to facilitate and enhance supervisory processes from the perspective of supervisory authorities.” It’s a little circular, but helpful.

The BIS defines suptech as “the use of technology for regulatory, supervisory and oversight purposes.” This is a similarly loose definition that describes the broader scope better.

Regardless of differences on the margins, the “sup” in these suptech definitions acknowledges the primacy of the idea that regulators’ objectives are to oversee the conduct, structure, and health of the financial system. Suptech technologies facilitate related regulatory supervision and enforcement processes.

Regulatory reporting

Regulatory reporting refers to a broad swath of activities such as financial firms providing trading data to regulatory authorities and regulators’ analysis of financial data or corporate information to determine the projected health or potential risks facing an institution or the market.

The MAS and FDIC are incorporating transactional and financial data reported by firms as a means to assess their financial viability. The MAS, in conjunction with BIS, has run tech sprints soliciting new ideas relating to regulatory reporting, while the FDIC has “a regulatory reporting solution that would allow ‘on-demand’ monitoring of banks as opposed to being constrained by ‘point-in-time’ reporting. This project is particularly targeted at smaller, community banks that provide only aggregated data on their financial health on a quarterly basis.”

The HKMA recently outlined its three-year plan for the development of suptech, which includes developing an approach to “network analysis.” The HKMA will analyze reporting data related to corporate shareholding and financial exposure to bring them “to life as network diagrams, so that the relationships between different entities become more apparent. Greater transparency of the connections and dependencies between banks and their customers will enable HKMA supervisors to detect early warning signals within the entire credit network.”

These reporting initiatives touch on a theme regulators have continuously struggled with: How to regulate markets and firms based on a reactive approach to historical data. Regulation and enforcement are often retrospective activities — examining past behavior and data to decide how to sanction an organization or develop a regulatory framework to govern a particular type of activity or financial product. This can result in an approach to regulation too rooted in past failures, which might lack the flexibility to anticipate or adapt to emerging risks or financial products.

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Fireflies.ai raises $14M for its meeting transcription and automation service

The Fireflies.ai project is a good reminder that not every startup project goes from idea to unicorn-status in 48 minutes. Instead, the startup’s CEO Krish Ramineni told TechCrunch about how a period of interest in natural language processing (NLP), tinkering with a friend, a stint at Microsoft, and even working on Slack bots led him to helping found Fireflies.ai (Fireflies), a company that today announced a $14 million raise led by Khosla.

Fireflies is a two-part service. Its first point of business is recording and transcribing voice conversations. Things like video meetings, for example. Next, Fireflies wants to plug your voice data into other applications, helping its customers automate data entry, task creation and more.

Before today’s round, the startup had raised around $5 million, including some micro-rounds, a stint in the Acceleprise accelerator, and a $4.9 million seed round raised in late 2019. That investment included participation from Canaan Partners and well-known angel April Underwood.

That Fireflies has raised more capital is not surprising, given how quickly it has accreted users. According to an interview with Ramineni, more than 10,000 teams use Fireflies today. In individual usage terms, some 35,000 organizations are represented amongst its user base.

As the company launched its product in early 2020, those results sound pretty good.

But TechCrunch was curious if revenue tracked with usage at Fireflies, as is sometimes the case. It does, Ramineni said, adding that his company grew its revenues 300% in the last six or seven months.

How did it manage such rapid growth while only having raised $5 million before, and with a team that is around 90% in its product and engineering teams? By pursuing everyone’s favorite: the bottoms-up sales model. In short, you can use Fireflies for free, but if you run out of meeting credits, other usage-based blockers or the need for different, paywalled functionality, you have to cough up for the product.

Folks are, it appears.

Fireflies is in fact an interesting hybrid of SaaS and usage-based pricing. The higher the paid tier that a user selects, the more minutes of transcription they are apportioned per month. But there are caps, limits that users can buy their way out of. TechCrunch asked Ramineni about it, with the CEO explaining that some customers want to ingest years of saved meetings. Our read is that despite work done by the startup to keep its infrastructure costs low, building pricing guardrails around product usage just makes sense for the startup.

The company will sport SaaS-like gross margins, Ramineni confirmed to TechCrunch.

Looking ahead, Fireflies wants to plug into more and more meeting platforms, and external software. You can currently link your Fireflies account to services like Zapier, Slack and your CRM. Over time, it’s not hard to see how the startup could take more direct commands from meetings, and help users better distribute, file and recall meeting information.

As someone with too many meetings, and too many notes documents spread out across the wasteland that is my Google Drive account, I get why people are using Fireflies today. But if the startup can build a no-code automation platform on top of my note taking? Then I will probably have to buy its service.

Speaking of which, as a final note, working for a Major American Corporation can have its downsides. For example, Ramineni provided TechCrunch with a recording of our interview inside of Fireflies. This was nice, as I prefer to write from both my notes and transcripts to ensure that I am not missing things, or making mistakes. Fireflies kept asking me to log in. I tried with my corporate Google account. Which blocks such log-ins. So I kept getting the same prompt again and again.

Annoying? Sure. Lethal? No.

More when we can squeeze more growth data out of the startup.

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Notable Health seeks to improve COVID-19 vaccine administration through intelligent automation

Efficient and cost-effective vaccine distribution remains one of the biggest challenges of 2021, so it’s no surprise that startup Notable Health wants to use their automation platform to help. Initially started to address the nearly $250 billion annual administrative costs in healthcare, Notable Health launched in 2017 to use automation to replace time-consuming and repetitive simple tasks in health industry admin. In early January of this year, they announced plans to use that technology as a way to help manage vaccine distribution.

“As a physician, I saw firsthand that with any patient encounter, there are 90 steps or touch points that need to occur,” said Notable Health Medical Director Muthu Alagappan in an interview. “It’s our hypothesis that the vast majority of those points can be automated.”

Notable Health’s core technology is a platform that uses robotic process automation (RPA), natural language processing (NLP) and machine learning to find eligible patients for the COVID-19 vaccine. Combined with data provided by hospital systems’ electronic health records, the platform helps those qualified to receive the vaccine set up appointments and guides them to other relevant educational resources.

“By leveraging intelligent automation to identify, outreach, educate and triage patients, health systems can develop efficient and equitable vaccine distribution workflows,” said Notable Health strategic advisor and Biden Transition COVID-19 Advisory Board Member Dr. Ezekiel Emanuel, in a press release.

Making vaccine appointments has been especially difficult for older Americans, many of whom have reportedly struggled with navigating scheduling websites. Alagappan sees that as a design problem. “Technology often gets a bad reputation, because it’s hampered by the many bad technology experiences that are out there,” he said.

Instead, he thinks Notable Health has kept the user in mind through a more simplified approach, asking users only for basic and easy-to-remember information through a text message link. “It’s that emphasis on user-centric design that I think has allowed us to still have really good engagement rates even with older populations,” he said.

While the startup’s platform will likely help hospitals and health systems develop a more efficient approach to vaccinations, its use of RPA and NLP holds promise for future optimization in healthcare. Leaders of similar technology in other industries have already gone on to have multibillion dollar valuations and continue to attract investors’ interest.

Artificial intelligence is expected to grow in healthcare over the next several years, but Alagappan argues that combining that with other, more readily available intelligent technologies is also an important step toward improved care. “When we say intelligent automation, we’re really referring to the marriage of two concepts: artificial intelligence — which is knowing what to do — and robotic process automation — which is knowing how to do it,” he said. That dual approach is what he says allows Notable Health to bypass administrative bottlenecks in healthcare, instructing bots to carry out those tasks in an efficient and adaptable way.

So far, Notable Health has worked with several hospital systems across multiple states in using their platform for vaccine distribution and scheduling, and are now using the platform to reach out to tens of thousands of patients per day.

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How artificial intelligence will be used in 2021

Scale AI CEO Alexandr Wang doesn’t need a crystal ball to see where artificial intelligence will be used in the future. He just looks at his customer list.

The four-year-old startup, which recently hit a valuation of more than $3.5 billion, got its start supplying autonomous vehicle companies with the labeled data needed to train machine learning models to develop and eventually commercialize robotaxis, self-driving trucks and automated bots used in warehouses and on-demand delivery.

The wider adoption of AI across industries has been a bit of a slow burn over the past several years as company founders and executives begin to understand what the technology could do for their businesses.

In 2020, that changed as e-commerce, enterprise automation, government, insurance, real estate and robotics companies turned to Scale’s visual data labeling platform to develop and apply artificial intelligence to their respective businesses. Now, the company is preparing for the customer list to grow and become more varied.

How 2020 shaped up for AI

Scale AI’s customer list has included an array of autonomous vehicle companies including Alphabet, Voyage, nuTonomy, Embark, Nuro and Zoox. While it began to diversify with additions like Airbnb, DoorDash and Pinterest, there were still sectors that had yet to jump on board. That changed in 2020, Wang said.

Scale began to see incredible use cases of AI within the government as well as enterprise automation, according to Wang. Scale AI began working more closely with government agencies this year and added enterprise automation customers like States Title, a residential real estate company.

Wang also saw an increase in uses around conversational AI, in both consumer and enterprise applications as well as growth in e-commerce as companies sought out ways to use AI to provide personalized recommendations for its customers that were on par with Amazon.

Robotics continued to expand as well in 2020, although it spread to use cases beyond robotaxis, autonomous delivery and self-driving trucks, Wang said.

“A lot of the innovations that have happened within the self-driving industry, we’re starting to see trickle out throughout a lot of other robotics problems,” Wang said. “And so it’s been super exciting to see the breadth of AI continue to broaden and serve our ability to support all these use cases.”

The wider adoption of AI across industries has been a bit of a slow burn over the past several years as company founders and executives begin to understand what the technology could do for their businesses, Wang said, adding that advancements in natural language processing of text, improved offerings from cloud companies like AWS, Azure and Google Cloud and greater access to datasets helped sustain this trend.

“We’re finally getting to the point where we can help with computational AI, which has been this thing that’s been pitched for forever,” he said.

That slow burn heated up with the COVID-19 pandemic, said Wang, noting that interest has been particularly strong within government and enterprise automation as these entities looked for ways to operate more efficiently.

“There was this big reckoning,” Wang said of 2020 and the effect that COVID-19 had on traditional business enterprises.

If the future is mostly remote with consumers buying online instead of in-person, companies started to ask, “How do we start building for that?,” according to Wang.

The push for operational efficiency coupled with the capabilities of the technology is only going to accelerate the use of AI for automating processes like mortgage applications or customer loans at banks, Wang said, who noted that outside of the tech world there are industries that still rely on a lot of paper and manual processes.

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Writer pens a $5M seed round for its AI style guide that flags bias and tone

Anyone who writes online or in a word processor has likely gotten used to the inevitable squiggly line denoting a misspelled word or clumsy phrase. But what if you use a word that’s loaded, a phrase that’s too formal or not formal enough, or refer to a group of people in an outdated way? Writer is a service that watches as you type, flagging language that doesn’t match up with your style guide and values, and it just raised $5 million to scale up.

Both people and the companies they work for want to improve the way they write, but not just in terms of grammar and spelling. If a company says it’s inclusive, but the language in its press releases or internal blogs are peppered with anachronisms and bias, it suggests their concern only goes so far.

“Companies are hungry to put actions behind their words,” said Writer founder and CEO May Habib. “They want to be able to tell a consistent story to their users everywhere that they’re interacting with them. What Writer does is let people know when they’re using insensitive language, or things that could be considered negative, and let companies set brand guidelines.”

Right off the bat let us admit that there is a whiff of the sinister about the idea of a company dictating how its employees speak, though that’s nothing new when it comes to content and official communications. But this isn’t about controlling speech for power — it’s about recognizing that we are all flawed communicators and could use a hand keeping ourselves honest. Less thought police and more a well-informed angel sitting on your shoulder whispering things like, “Hey. Are you sure you want to describe that lawyer as ‘exotic’?”

Examples of things Writer checks for. Image Credits: Writer

There are tons of slip-ups we all make along those lines; less obvious, but no less potentially offensive. It’s important in public communications, among other things, to refer to a group by the term they prefer, not the first one that pops into your head; Writer has up-to-date libraries of this information sourced from the communities themselves. Some phrases may have become politically loaded in the last couple of years, but you’re not aware; no problem, it has alternatives. You want to avoid unnecessarily gendered language, great, but everyone slips up now and then; Writer can spot it — or make the connection with previous pronouns to make sure you don’t, for example, gender an anonymous source.

Accusations of “political correctness” will dog the service, but as Habib put it: “This is beyond politics; this is about respect for people who live a certain way, or are a certain way, and prefer to use certain terms. We’re trying to help companies create communities of belonging.” And as we’ve seen over and over again in tech, there is often a serious disconnect between the stated aspiration of a company and how people are treated within them. Just using the right words is a pretty low bar to start with, honestly.

Image Credits: Writer

Writer isn’t just a growing blacklist of words you should think twice about using, though. The natural language processing engine at the heart of it is also very concerned with things like sentence complexity, paragraph length and tone. It has to have this deeper understanding, Habib explained, because “it’s not enough to underline — you need to know what to replace it with, and when you replace it, you need to fit it into the sentence. These are actually hard NLP problems.”

That lets it fit into a variety of roles in addition to promoting inclusive language. It can watch for the usual spelling and grammar mistakes, as well as things like formality, active voice, “liveliness” (whatever that is, I don’t have it) and other metrics that help define a brand.

And of course you can bring in your own style guide so your editors don’t have to roll their eyes at serial commas in headlines, double dashes instead of em dashes, e-mail instead of email and all the rest of the little nips and tucks that keep a brand’s writing in a generally recognizable shape.

Image Credits: Writer

The service can also switch between style guides or adjust or disable itself in different apps and sites — so internal emails aren’t given the same guidelines as press releases, or a blog post’s style can be differentiated from a newsletter’s.

Obviously Grammarly is a big competitor here, but Habib feels that it and the growing number of in-browser or in-app checking services are very focused on the technical piece. Writer is less about preventing an individual writer’s errors, and more about creating consistency among groups of writers and making sure they are working from the same high-level linguistic standards.

Of course security is also a concern — no one wants a keylogger running on their machine, however helpful it may be. Habib was careful to emphasize that Writer runs locally in the browser as a plug-in, integrating with Word or Chrome for now but with other apps and services on the way. “None of that data ever hits a writer server, and no metadata — all the processing is done in the text area,” she said. The only data that’s sent back is the fact that a given suggestion was used, such as changing “should of” to “should have” or “illegal aliens” to “undocumented immigrants.” No user data is used to train the models and no content apart from the correction itself is sent or stored on Writer’s servers.

Writer is available now, for $11/person/month (with the obligatory free trial period, of course) for a basic version and some unspecified amount for enterprise deals with multiple style guides, plagiarism detection, and so on. It’s only available in English, and although there is of course demand for the service in other languages, the depth of the NLP model and the specificity of what it recognizes to the language mean it does not generalize well. To take on Spanish or Korean would be to develop an entirely new product. So English it is for now.

The company is new, and has been developing its NLP engine (on the back of a previous effort, which monitored user-facing language in GitHub repos) for 18 months in something like stealth. The $5 million seed round, led by Upfront Ventures, Aspect Ventures, Bonfire Ventures, and Broadway Angels should help the company scale, though it already has some top-tier, household-name customers, so with that and the money, its immediate future seems to be secure.

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Golden raises $14.5M to build a wiki-style database of tech knowledge

Golden is announcing that it has raised $14.5 million in Series A funding. The round was led by previous investor Andreessen Horowitz, with the firm’s co-founder Marc Andreessen joining the startup’s board of directors.

When Golden launched last year, founder and CEO Jude Gomila told me that his goal was to create a knowledge base focused on areas where Wikipedia’s coverage is often spotty, particularly emerging technology and startups.

Gomila told me this week that “companies, technologies and the people involved in them” remain Golden’s strength. In that sense, you could see it as a competitor to Crunchbase, but with a much bigger emphasis on explaining and “clustering” information on big topics like quantum computing and COVID-19, rather than just aggregating key data about companies and people. (By the way, both TechCrunch and the author of this post have their own profile pages, though the latter is woefully empty.)

In contrast to Wikipedia, which relies on community editors, Gomila said most of the data in Golden is gathered using artificial intelligence and natural language processing: “We’re using AI to extract information from the news, from websites, from public databases.

This is supplemented by Golden staff (former TechCrunch copy editor Holden Page leads the startup’s research team), while the larger community can also pitch in by flagging things that are incorrect or need to be updated. (As one example of this “human in the loop” editing process, Gomila showed me a tool where someone could paste in an article link and Golden would automatically summarize it.)

“The ultimate aim is to try and automate as much of this as possible,” Gomila said. “[For now,] this hybrid is the most effective method.”

Golden has also started working with paying customers including private equity firms, hedge funds, VCs, biotechnology companies, corporate innovation offices and government agencies — in fact, it says it signed a $1 million contract with the U.S. Air Force this year. These customers are paying for access to Golden’s research engine, which includes the company’s Query Tool and the ability to request that the startup prepare research on a particular topic.

Golden has now raised a total of $19.5 million. Other investors in the new funding include DCVC, Harpoon Ventures and Gigafund .

“Golden’s knowledge base and research engine aggregates information about emerging technologies and the companies, investors, and the builders behind them,” Andreessen said in a statement. “Human and machine intelligence, working together on Golden’s platform, results in knowledge which gives people the edge in making decisions and navigating uncertainty.”

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Hypotenuse AI wants to take the strain out of copywriting for e-commerce

Imagine buying a dress online because a piece of code sold you on its ‘flattering, feminine flair’ — or convinced you ‘romantic floral details’ would outline your figure with ‘timeless style’. The very same day your friend buy the same dress from the same website but she’s sold on a description of ‘vibrant tones’, ‘fresh cotton feel’ and ‘statement sleeves’.

This is not a detail from a sci-fi short story but the reality and big picture vision of Hypotenuse AI, a YC-backed startup that’s using computer vision and machine learning to automate product descriptions for e-commerce.

One of the two product descriptions shown below is written by a human copywriter. The other flowed from the virtual pen of the startup’s AI, per an example on its website.

Can you guess which is which?* And if you think you can — well, does it matter?

Screengrab: Hypotenuse AI’s website

Discussing his startup on the phone from Singapore, Hypotenuse AI’s founder Joshua Wong tells us he came up with the idea to use AI to automate copywriting after helping a friend set up a website selling vegan soap.

“It took forever to write effective copy. We were extremely frustrated with the process when all we wanted to do was to sell products,” he explains. “But we knew how much description and copy affect conversions and SEO so we couldn’t abandon it.”

Wong had been working for Amazon, as an applied machine learning scientist for its Alexa AI assistant. So he had the technical smarts to tackle the problem himself. “I decided to use my background in machine learning to kind of automate this process. And I wanted to make sure I could help other e-commerce stores do the same as well,” he says, going on to leave his job at Amazon in June to go full time on Hypotenuse.

The core tech here — computer vision and natural language generation — is extremely cutting edge, per Wong.

“What the technology looks like in the back end is that a lot of it is proprietary,” he says. “We use computer vision to understand product images really well. And we use this together with any metadata that the product already has to generate a very ‘human fluent’ type of description. We can do this really quickly — we can generate thousands of them within seconds.”

“A lot of the work went into making sure we had machine learning models or neural network models that could speak very fluently in a very human-like manner. For that we have models that have kind of learnt how to understand and to write English really, really well. They’ve been trained on the Internet and all over the web so they understand language very well. “Then we combine that together with our vision models so that we can generate very fluent description,” he adds.

Image credit: Hypotenuse

Wong says the startup is building its own proprietary data-set to further help with training language models — with the aim of being able to generate something that’s “very specific to the image” but also “specific to the company’s brand and writing style” so the output can be hyper tailored to the customer’s needs.

“We also have defaults of style — if they want text to be more narrative, or poetic, or luxurious —  but the more interesting one is when companies want it to be tailored to their own type of branding of writing and style,” he adds. “They usually provide us with some examples of descriptions that they already have… and we used that and get our models to learn that type of language so it can write in that manner.”

What Hypotenuse’s AI is able to do — generate thousands of specifically detailed, appropriately styled product descriptions within “seconds” — has only been possible in very recent years, per Wong. Though he won’t be drawn into laying out more architectural details, beyond saying the tech is “completely neural network-based, natural language generation model”.

“The product descriptions that we are doing now — the techniques, the data and the way that we’re doing it — these techniques were not around just like over a year ago,” he claims. “A lot of the companies that tried to do this over a year ago always used pre-written templates. Because, back then, when we tried to use neural network models or purely machine learning models they can go off course very quickly or they’re not very good at producing language which is almost indistinguishable from human.

“Whereas now… we see that people cannot even tell which was written by AI and which by human. And that wouldn’t have been the case a year ago.”

(See the above example again. Is A or B the robotic pen? The Answer is at the foot of this post)

Asked about competitors, Wong again draws a distinction between Hypotenuse’s ‘pure’ machine learning approach and others who relied on using templates “to tackle this problem of copywriting or product descriptions”.

“They’ve always used some form of templates or just joining together synonyms. And the problem is it’s still very tedious to write templates. It makes the descriptions sound very unnatural or repetitive. And instead of helping conversions that actually hurts conversions and SEO,” he argues. “Whereas for us we use a completely machine learning based model which has learnt how to understand language and produce text very fluently, to a human level.”

There are now some pretty high profile applications of AI that enable you to generate similar text to your input data — but Wong contends they’re just not specific enough for a copywriting business purpose to represent a competitive threat to what he’s building with Hypotenuse.

“A lot of these are still very generalized,” he argues. “They’re really great at doing a lot of things okay but for copywriting it’s actually quite a nuanced space in that people want very specific things — it has to be specific to the brand, it has to be specific to the style of writing. Otherwise it doesn’t make sense. It hurts conversions. It hurts SEO. So… we don’t worry much about competitors. We spent a lot of time and research into getting these nuances and details right so we’re able to produce things that are exactly what customers want.”

So what types of products doesn’t Hypotenuse’s AI work well for? Wong says it’s a bit less relevant for certain product categories — such as electronics. This is because the marketing focus there is on specs, rather than trying to evoke a mood or feeling to seal a sale. Beyond that he argues the tool has broad relevance for e-commerce. “What we’re targeting it more at is things like furniture, things like fashion, apparel, things where you want to create a feeling in a user so they are convinced of why this product can help them,” he adds.

The startup’s SaaS offering as it is now — targeted at automating product description for e-commerce sites and for copywriting shops — is actually a reconfiguration itself.

The initial idea was to build a “digital personal shopper” to personalize the e-commerce experence. But the team realized they were getting ahead of themselves. “We only started focusing on this two weeks ago — but we’ve already started working with a number of e-commerce companies as well as piloting with a few copywriting companies,” says Wong, discussing this initial pivot.

Building a digital personal shopper is still on the roadmap but he says they realized that a subset of creating all the necessary AI/CV components for the more complex ‘digital shopper’ proposition was solving the copywriting issue. Hence dialing back to focus in on that.

“We realized that this alone was really such a huge pain-point that we really just wanted to focus on it and make sure we solve it really well for our customers,” he adds.

For early adopter customers the process right now involves a little light onboarding — typically a call to chat through their workflow is like and writing style so Hypotenuse can prep its models. Wong says the training process then takes “a few days”. After which they plug in to it as software as a service.

Customers upload product images to Hypotenuse’s platform or send metadata of existing products — getting corresponding descriptions back for download. The plan is to offer a more polished pipeline process for this in the future — such as by integrating with e-commerce platforms like Shopify .

Given the chaotic sprawl of Amazon’s marketplace, where product descriptions can vary wildly from extensively detailed screeds to the hyper sparse and/or cryptic, there could be a sizeable opportunity to sell automated product descriptions back to Wong’s former employer. And maybe even bag some strategic investment before then…  However Wong won’t be drawn on whether or not Hypotenuse is fundraising right now.

On the possibility of bagging Amazon as a future customer he’ll only say “potentially in the long run that’s possible”.

Joshua Wong (Photo credit: Hypotenuse AI)

The more immediate priorities for the startup are expanding the range of copywriting its AI can offer — to include additional formats such as advertising copy and even some ‘listicle’ style blog posts which can stand in as content marketing (unsophisticated stuff, along the lines of ’10 things you can do at the beach’, per Wong, or ’10 great dresses for summer’ etc).

“Even as we want to go into blog posts we’re still completely focused on the e-commerce space,” he adds. “We won’t go out to news articles or anything like that. We think that that is still something that cannot be fully automated yet.”

Looking further ahead he dangles the possibility of the AI enabling infinitely customizable marketing copy — meaning a website could parse a visitor’s data footprint and generate dynamic product descriptions intended to appeal to that particular individual.

Crunch enough user data and maybe it could spot that a site visitor has a preference for vivid colors and like to wear large hats — ergo, it could dial up relevant elements in product descriptions to better mesh with that person’s tastes.

“We want to make the whole process of starting an e-commerce website super simple. So it’s not just copywriting as well — but all the difference aspects of it,” Wong goes on. “The key thing is we want to go towards personalization. Right now e-commerce customers are all seeing the same standard written content. One of the challenges there it’s hard because humans are writing it right now and you can only produce one type of copy — and if you want to test it for other kinds of users you need to write another one.

“Whereas for us if we can do this process really well, and we are automating it, we can produce thousands of different kinds of description and copy for a website and every customer could see something different.”

It’s a disruptive vision for e-commerce (call it ‘A/B testing’ on steroids) that is likely to either delight or terrify — depending on your view of current levels of platform personalization around content. That process can wrap users in particular bubbles of perspective — and some argue such filtering has impacted culture and politics by having a corrosive impact on the communal experiences and consensus which underpins the social contract. But the stakes with e-commerce copy aren’t likely to be so high.

Still, once marketing text/copy no longer has a unit-specific production cost attached to it — and assuming e-commerce sites have access to enough user data in order to program tailored product descriptions — there’s no real limit to the ways in which robotically generated words could be reconfigured in the pursuit of a quick sale.

“Even within a brand there is actually a factor we can tweak which is how creative our model is,” says Wong, when asked if there’s any risk of the robot’s copy ending up feeling formulaic. “Some of our brands have like 50 polo shirts and all of them are almost exactly the same, other than maybe slight differences in the color. We are able to produce very unique and very different types of descriptions for each of them when we cue up the creativity of our model.”

“In a way it’s sometimes even better than a human because humans tends to fall into very, very similar ways of writing. Whereas this — because it’s learnt so much language over the web — it has a much wider range of tones and types of language that it can run through,” he adds.

What about copywriting and ad creative jobs? Isn’t Hypotenuse taking an axe to the very copywriting agencies his startup is hoping to woo as customers? Not so, argues Wong. “At the end of the day there are still editors. The AI helps them get to 95% of the way there. It helps them spark creativity when you produce the description but that last step of making sure it is something that exactly the customer wants — that’s usually still a final editor check,” he says, advocating for the human in the AI loop. “It only helps to make things much faster for them. But we still make sure there’s that last step of a human checking before they send it off.”

“Seeing the way NLP [natural language processing] research has changed over the past few years it feels like we’re really at an inception point,” Wong adds. “One year ago a lot of the things that we are doing now was not even possible. And some of the things that we see are becoming possible today — we didn’t expect it for one or two years’ time. So I think it could be, within the next few years, where we have models that are not just able to write language very well but you can almost speak to it and give it some information and it can generate these things on the go.”

*Per Wong, Hypotenuse’s robot is responsible for generating description ‘A’. Full marks if you could spot the AI’s tonal pitfalls

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SirionLabs raises $44M to scale its contract management software

SirionLabs, a startup that provides contract management software to enterprises, has raised $44 million in a new financing round as it looks to expand and handle surge in demand from clients.

Tiger Global and Avatar Growth Capital led the Seattle-headquartered startup’s Series C round. The eight-year-old startup, which was founded in India, has raised $66 million to date. The new round values the startup at about $250 million. Indian VC fund Avatar has long invested in SaaS startups in India, an area that Tiger Global has also made serious bets on in recent quarters.

Enterprises broadly handle two kinds of contracts, one when they are buying things from a supplier for which they use a procurement contract, and the other when they are selling things to customers, when a sales contract comes into play.

A significant number of companies today handle these contracts manually with different teams within an organization often dealing with the same entity, which leads to discrepancies in their promises. Teams work in silos and often don’t know the terms others in the organization have already agreed upon.

That’s where SirionLabs comes into the picture. “We use artificial intelligence and natural language processing to connect the dots between contracts and what happens after the contract has been signed,” explained Ajay Agrawal, cofounder, chairman and chief executive of the startup, in an interview with TechCrunch.

“For us, it’s not just creating a contract, but also realizing the promises that have been made in those contracts,” he said. SirionLabs also audits the invoice of suppliers, which has enabled its customers to save a significant amount of money.

SirionLabs today hosts contracts in over 40 languages for more than 200 of the world’s largest companies including Credit Suisse, Vodafone, EY, Unilever, Abbvie, BP, and Fujitsu.

Agrawal said the startup has seen a 4X growth in the number of customers it has signed up in the last 18 months. Part of the new capital would go into handling their demand. He said the coronavirus crises has resulted in many companies becoming more cautious about what they promise in their contracts.

The startup, which just opened a technology center in Seattle, also plans to open an AI laboratory in the Washington state to fuel technology innovation and grow sales.

It has also hired several industry veterans including the appointment of Amol Joshi as chief revenue officer, Anu Engineer as chief technology officer, Mahesh Unnikrishnan as chief product officer, and Vijay Khera, who will serve as chief customer officer.

Vishal Bakshi, founder and managing partner at Avatar Growth Capital, said he expects SirionLabs, which competes with Apttus and Icertis among other firms, to “capture massive network effects as the platform continues to scale.”

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