Many companies are focused on addressing intercompany data transfers; however, large enterprises still overwhelmingly rely on emails, phone calls, and EDI’s to transfer important data between two companies. BackboneAI transforms how businesses exchange data through its proprietary technology that increases the efficiency of intercompany data processes by introducing automation. BackboneAI’s platform is layered on top of existing data to coordinate the various stages within the supply chain in multiple industries, including retail, entertainment, and food supply. At its core, the company has built the ability to introduce data networks that can be automated through AI to give the right parties, access to the right data, at the right time with little human interaction. This frees up staff to focus on strategic initiatives rather than managing data. The solution can be easily implemented on top of existing technology stacks.
AlleyWatch sat down with CEO and Founder Rob Bailey to learn more about how BackboneAI is poised to change the way mid-sized and Fortune 500 companies view intercompany data flows, the company’s experience being incubated at Boldstart, and its recent funding round.
Who were your investors and how much did you raise?
BackboneAI raised a $4.7M Seed round, led by Fika Ventures with participation from Boldstart Ventures, Cendana Capital, Dynamo Ventures, GGV Capital, MetaProp, Spider VC, and several notable angel investors.
Tell us about the product or service that BackboneAI offers.
BackboneAI builds frictionless data networks through intercompany automation, a completely new category of automation. Transforming supplier and customer relationships through real-time data synchronization, fast API connectivity, and regulatory integration, BackboneAI seamlessly automates intercompany data processes.
What inspired the start of BackboneAI?
I spent a lot of time this past year traveling around the country, visiting and speaking with dozens of Fortune 500s and getting a clear understanding of their challenges. A lack of intercompany data automation is one that kept surfacing. We found that data flows between companies were relying on decades-old technology like email, phone calls, and EDI to transmit important data. We then got to work developing the platform iteratively with lead customers.
How is BackboneAI different?
BackboneAI is uniquely transforming how the enterprise collects and uses its data via four key differentiators:
Fast: Deployed quickly at scale, automates data processes within weeks to significantly increase data team productivity.
Intelligent: Ingests data from various sources, harmonize it through automation, and then delivers it into your systems. Uses algorithms and human interaction to identify data anomalies and resolve them quickly.
Automated: Uses AI to accelerate the way product data flows between people and organizations, reducing friction and enabling them to collaborate more productively.
Empowering: Evolves the role of data teams from cost centers to strategic revenue generators.
What market does BackboneAI target and how big is it?
Intercompany automation is a growing need across global Fortune 500 companies, and there are many use cases for BackboneAI, including supply chain data coordination between suppliers and customers, product data coordination with suppliers including catalogue management, coordination of construction materials across vendors and construction companies, and global rights management for entertainment companies with affiliates and distribution.
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What’s your business model?
Software as a service, recurring fees based on monthly data volumes.
The company was initially incubated within Boldstart. Would you please tell us about that?
Working with Boldstart has been an amazing experience and I highly recommend it to other founders. Each one of Boldstart’s partners has different skill sets that were valuable to me at different times during the last 18 months. I am deeply grateful for their help leveraging relationships with dozens of Fortune 500 companies and their CXO advisor network.
What was the funding process like?
It went really quickly. The lead partner from Fika and I have known each other for 10+ years.
What are the biggest challenges that you faced while raising capital?
Raising money successfully from angels and VC funds is a skill that can be learned and honed over time. Some helpful hacks include: develop a well-researched fundraising plan and target list, focusing on a big problem for a sizable TAM [total addressable market], and tell a compelling story that resonates emotionally with investors. That said, I still have a lot to learn — and have already, especially after rebuilding the BackboneAI deck more than 30 times.
What factors about your business led your investors to write the check?
BackboneAI is the first AI platform specifically built for data collection within and between organizations. The platform can be configured and deployed within a few weeks, and dramatically improve data team productivity. Based upon early indicators, BackboneAI is on track for rapid market adoption across Fortune 500 and mid-size companies in categories ranging from automotive to retail to food supply chains and entertainment.
Over the past decade, enterprise automation companies have created enormous value for Fortune 500 companies, which are now looking for other areas that can automate, rendering intercompany data flows as a tremendous opportunity. BackboneAI empowers the data workers in those processes, transforming them from cost centers to profit generators.
What are the milestones you plan to achieve in the next six months?
We are moving fast to scale to our first 10 Fortune 500 customers.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Be passionate about the problems you’re solving. You may spend a decade of your life working on it. Be selective about the people that you work with (vendors, investors, partners). Building a startup is a long journey, so it is important to love who you work with. Conversely, toxic working relationships can destroy valuable companies. Finally, give back.
Be passionate about the problems you’re solving. You may spend a decade of your life working on it. Be selective about the people that you work with (vendors, investors, partners). Building a startup is a long journey, so it is important to love who you work with. Conversely, toxic working relationships can destroy valuable companies. Finally, give back.
Where do you see the company going now over the near term?
We are focused on scaling up with our first customer and building new customer relationships.
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