Ripcord, known for its robotic document digitization technology, is pursuing a funding round that could potentially value the company at $110 million. The startup aims to secure $20-25 million in investment from backers including Alphabet's GV, Lux Capital, and MUFG. This funding would expand Ripcord's resources as it prepares to introduce a generative AI tool called Docufai.
Ripcord has raised substantial funding over the years, with the majority coming from previous investors like Kleiner Perkins, Silicon Valley Bank, Tyche Partners, Icon Ventures, and Baidu. Apple co-founder Steve Wozniak participated in Ripcord's Series A funding round.
The company's current funding round seeks $20-25 million, with participation from GV, Lux Capital, and MUFG. This would bring Ripcord's total funding to approximately $150 million and add to its impressive list of investors.
Ripcord faced controversy in 2018 when former employee Perry Coneybeer made allegations of inappropriate behavior by then-CEO Alex Fielding and other employees. The startup responded by promising to investigate the allegations. Fielding later became the director of the board before departing Ripcord to launch space startup Privateer.
The company highlights significant achievements, including a deal with the IRS for tax document processing worth over $4 million, an expanded deal with the U.S. Air Force, and an annual contract with MUFG worth $5 million. The startup also mentions being in the final stages of a substantial deal with Wells Fargo.
Ripcord's revenue has steadily increased, reaching $11.8 million in 2022, up from $5.9 million in 2021. While the company is not yet profitable, it anticipates ending 2023 with $22.5 million in revenue and projecting $49.2 million in revenue by Q4 2024.
Its core technology involves using physical robots to autonomously scan and digitize documents, including removing staples. Through partnerships with logistics companies, Ripcord transports files to its facilities, where they are scanned, stored, or shredded, depending on compliance requirements.
The startup generates revenue by charging for document scans, typically costing between $0.08 and $0.25 per image. The robots employ computer vision, lifting and positioning arms, and RGB cameras to handle various document formats and extract data.
Ripcord is developing a generative AI tool called Docufai, designed for document discovery. This tool will allow customers to ask questions about scanned documents and receive answers. The company's product roadmap for Docufai includes features like document translation, finding related documents, and collaborative sharing.
The company aims to onboard 1,000 users to Docufai by the end of Q3 2023. The company plans to release a paid tier for Docufai, followed by teams and enterprise tiers in 2024, marking an important milestone in the startup's evolution.
Ripcord's strategic growth, partnerships, and revenue increases reflect its progress in the robotic document digitization sector. With plans to introduce Docufai, a generative AI tool, the startup is poised for further expansion and innovation in the document management industry.