The massive wave of digital transformation across the globe is accelerating the velocity of data creation at enterprises. Lucy.ai is an AI powered platform that works alongside knowledge workers at enterprises to access data and knowledge that already exists within an enterprise quickly and accurately, thus saving significant costs both by eliminating data re-creation as well as improving employee productivity and satisfaction.
Gartner estimates that over 80% of enterprise data is unstructured, which makes it difficult to retrieve and utilize by employees. As much as 95% of organizational data will never be accessed again after 90 days from creation(1). This is an immense waste of valuable employee time and enterprise resources.
Enterprises focused on providing employees with the right tools to enhance their skillsets and maximize their efficiency while minimizing unproductive tasks and are adopting knowledge management systems as a solution – resulting in a $300 billion+ current market opportunity which StrategyR estimates to grow to $1.4 trillion by 2027(2). Lucy.ai is gaining significant traction in this segment and is at an inflection point doubling its revenue run rate in the past 18 months.
Knowledge workers at an enterprise such as marketing, business development, sales and customer support employees as well as leadership teams are forced to piece together information based on a deep exploration process and spend an average of 5-10 hours per week on internal tools and systems. They are dependent on document titles, memory or subject matter experts to find the critical information and then have to painstakingly find the relevant content within the source. Lucy works as a companion alongside employees becoming an essential component of their day-to-day activities, freeing them up from unproductive tasks and enhancing their value as knowledge workers. Lucy can even connect to third party data sources an enterprise subscribes to and continues to get more intelligent by watching, learning, and remembering the accumulated knowledge of its users and where information resides. Data from Lucy’s customers validates its value proposition with active usage up 225% and a 30x increase in time saved by employees in the past 18 months.
It is not often that a product use case strikes a chord as immediately and universally as Lucy did when we at Dallas Venture Capital first met with the Lucy team and evaluated the product. Anyone who has worked at a medium sized or larger organization has experienced the pain point of – “I know we have this information somewhere, but how do I access and use it?” This is a perfect fit for DVC’s investment thesis of investing in companies solving real pain points for enterprises and employees with a true horizontal product and a large range of use cases.
Lucy.ai has also successfully executed on another key DVC investment criteria – finding an initial beachhead and broadening their user base within an enterprise. As the leading solution for Research and Insights teams at large enterprises they can demonstrate immediate and high ROI and have a proven track record with over 20 Fortune 1000 customers including marquee logos such as Pepsi, GSK, Warner Media, Target and Nationwide. More importantly, Lucy.ai has been deployed beyond Research and Insights teams and is used by Sales professionals, Human Resource departments, Developers, and Customer Support members and has proven to be a critical knowledge management tool to manage employee transitions, M&A situations, and reduce dependency on SMEs.
Lucy.ai has successfully demonstrated a consistently high growth rate in customers, users and revenue. Users at Lucy’s Fortune 500 customers have grown from 10’s to 1000’s in relatively short windows of time of 1 – 2 years by rapidly expanding use cases and deploying across business units resulting in a transformation of how knowledge is managed across these users. One example of this growth can be seen at Pepsi, who recently shared their experience and result with working with Lucy’s technology. (Link)
A key driver of Lucy’s success is its ease of deployment and high rates of employee adoption. Lucy automates data ingestion and tagging, thus eliminating time consuming implementation challenges and is the fastest to deploy solution among its peers. It also does not require manual efforts by employees to train it or tag metadata, creating an exceptional user experience. Lucy’s automated integration to data repositories and sources, avoids the need to move assets from secure internal systems or outside protected firewalls ensuring security and privacy compliance.
DVC takes pride in backing passionate and visionary entrepreneurs and Lucy is led by an experienced leadership team with a track record of building several successful companies and is well positioned to capture a market leading position within the knowledge management industry. Our entire team at DVC is excited to be a part of the journey ahead and helping them in their growth through our DVC Advantage program.
1) Organizations Will Need to Tackle Three Challenges to Curb Unstructured Data Glut and Neglect (gartner.com)
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