While customer service is largely centered around human interaction, it’s largely been powered by non-human automation lately. While automation has allowed companies to address staffing challenges and quickly address customer needs, it can be a source of frustration if not done correctly. NLX is a conversational AI platform centered around self-driven customer service experiences. Using a blend of AI and natural language understanding (NLU), the platform allows organizations to design seamless customer experiences that are synced across multiple interaction channels – whether it be phone, chat, online, or voice to provide intelligent automated customer service. NLX, founded in 2018, is currently focused on the hospitality, travel, CPG, and energy sectors.
AlleyWatch caught up with NLX CEO and Cofounder Andrei Papancea to learn more about how the company has differentiated itself in the automated customer service space, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
We are proud to share that NLX secured $5 million in Seed funding to transform businesses’ customer support into automated, personalized customer self-service experiences. We’re grateful to our top investor – Aquila Capital Partners – and participating investors Flying Fish Partners, Sage Venture Partners, and JetBlue Technology Ventures.
Tell us about the product or service that NLX offers.
Our Conversational AI SaaS products help brands transform their customer interactions into automated, personalized self-service experiences. When implemented, NLX empowers a brand’s customers to resolve their own inquiries at their own pace — with no wait time or frustration.
What inspired the start of NLX?
When we started NLX in 2018, we knew there was an opportunity to improve the customer service landscape. Hold times and staffing challenges continuously plague the customer support industry, resulting in diminished customer satisfaction, brand loyalty, and ultimately, a hit to the bottom line.
The pandemic compounded these existing challenges, creating a clear need: Businesses needed a better way to efficiently and effectively address customer inquiries – whenever and however – without hiring more staff.
None of the solutions on the market seemed to fully and completely address the business need, and, with our experience and knowledge in the AI and NLU space, we knew we could rise to meet the challenge. So, Peter, Vlad, and I began creating a suite of AI-powered products that allow businesses to offer white-glove service to all their customers, no matter if they reach out on the phone, online, or using voice assistant technology like Alexa, and NLX was born.
How is NLX different?
Voice Compass is unlike anything else currently on the market. With the ability to create and manage all your call conversations in a central, low-code environment, and by leveraging multiple modalities in synchronization, Voice Compass helps resolve inquires that would normally require human support.
What market does NLX target and how big is it?
NLX is targeting the customer service market, primarily B2C organizations with a lot of customer interactions. Our tools can help businesses from a variety of industries transform their customer interactions into automated, self-service experiences, so the market is huge!
That said, our market focuses at the moment are Travel and Hospitality (we’re an AWS Travel and Hospitality certified partner), Energy, and CPG (Redbull is one of our clients!) We’re in discussions with a lot of major airlines at the moment and are seeing success in the other two industries as well.
What’s your business model?
Most Conversational AI companies require companies to sign service contracts with tiered pricing where there are hidden fees or startup service charges – NLX requires none of that. Our cost-effective pay-as-you-go model means businesses can scale with demand, paying per conversation or minute. We don’t have any hidden fees or service charges to get set up either, which makes it even more intriguing for businesses to sign up and try our technology.
What are your post-COVID office plans??
While we are headquartered in New York, we’re a fully remote company, so no post-COVID office plans at the moment.
While there are many benefits to being fully remote, we do miss out on some of the benefits of being in an office. To combat some of the downsides of being remote, when it’s safe, we host quarterly staff retreats to strategize and deep-dive our future.
What are the biggest challenges that you faced while raising capital?
Funding can be very complex – there are a million questions you ask, there’s intricate strategy and tactics, and the world around you is constantly shifting. The exact challenges you and your exec team face are always specific to your company, at that time, with those investors — it’s going to differ slightly for all.
But I will tell you what makes the funding process a whole hell of a lot easier, and it’s two things: great investors and an awesome executive team.
Our investors – Aquila Capital Partners, Flying Fish Partners, Sage Venture Partners, and JetBlue Technology Ventures – did more than just sign a check. They asked smart questions, challenged our company and our product, provided support when needed, and we’re a stronger company for it. We’re grateful to them for working with us through the funding process and ultimately investing in us.
Doug Bryers, COO, and Brian Dawson, Head of Business Development, are talented serial entrepreneurs. Brian has more than 25 years of company growth and team leadership experience across a range of verticles, and Doug has built companies and marketed innovative products, services for software, and technology firms since 1995. Their savvy and know-how can’t be learned in a book or in a business school. Their expertise has been developed and honed throughout their careers, and it’s what helped us get to where we are today.
Doug Bryers, COO, and Brian Dawson, Head of Business Development, are talented serial entrepreneurs. Brian has more than 25 years of company growth and team leadership experience across a range of verticles, and Doug has built companies and marketed innovative products, services for software, and technology firms since 1995. Their savvy and know-how can’t be learned in a book or in a business school. Their expertise has been developed and honed throughout their careers, and it’s what helped us get to where we are today.
What factors about your business led your investors to write the check?
Our business model, our technology and our team are all leading factors, but we’ll let the investors explain why they support us in their own words…
- “Andrei is part of the next generation of innovative and promising entrepreneurs. He and his team created a highly-innovative product offering that will change the way companies – and their customers – think about customer service. The potential of NLX is so exciting, and I’m thrilled to help the company scale to shape the future.” – Mark E. Watson III, Founder and Chairman at Aquila Capital Partners
What are the milestones you plan to achieve in the next six months?
Just thinking about it is exhilarating – we’re on the precipice of doubling our company in customers, revenue, and people, and our goal in the next six months is to achieve exactly that. Our recent raise will help us achieve that growth, optimize our product offerings, hire more smart, talented people, and further drive customer success.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
If you’re passionate about what you’re doing, strategic in your thinking and approach, and have a product that solves a market problem, continue chasing your dream. Persistence pays off, but also be open to new situations and people and the opportunities they bring – you might just get what you need.
What’s your favorite outdoor dining restaurant in NYC?
During this weather? Burrrr!!!!
But during nicer weather, I would recommend The Laduree shop in SoHo – it’s great for a small group, the food and atmosphere are great as well! If you’re open to splurging, Terrace at Nougatine is a chef’s kiss.
