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Synopsis of Weekly Deal Review Meeting on 11/05/2023

· 3 min read
Liz Yang

The meeting conducted on November 5, 2023, presented a review of potential investment opportunities. Below is a concise evaluation of each opportunity based on the discussions.

Puzzle

  • Puzzle is venturing into the accounting software market with a Series A+ round seeking $30M at a $120M pre-money valuation.
  • Despite pre-revenue status, projections show promising growth (ARR from $0.4M in Q4 2023 to $24.3M by 2025).
  • The company targets a significant market gap due to a 17% decline in U.S. accountants and auditors since 2019.
  • Challenges faced by legacy systems and the role of AI in expense categorization were discussed. The comparison to older systems like Netsuite suggests a competitive edge but also raises questions about market penetration capabilities.
  • The global fund administration services industry was worth at least $8 to $12 billion as of August 2021. ([https://boldergroup.com/insights/blogs/global-fund-administration-services](https://boldergroup.com/insights/blogs/global-fund-administration-services/#:~:text=The global fund a))
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Wobot Intelligence

  • Wobot, at the Seed+ stage, is raising $2M with a convertible note capped at $20M.
  • The company offers a no-code AI video intelligence platform with $100K MRR and significant U.S. revenue, poised for growth.
  • Questions regarding the efficacy of computer vision over existing security systems and the reliability of the India-based team were raised.

Grayce

  • Grayce is a Series A stage company raising $10M at a $26M pre-money valuation.
  • It provides a family caregiving platform with a growing customer base and has shown 230% YoY growth.
  • The scalability and complexity of competing with insurance companies were noted as potential challenges.

Atomic AI

  • Seeking $20M SAFE in Series A+, Atomic AI focuses on fusing AI with structural biology for RNA drug discovery.
  • The field is complex, and further expertise is needed to fully grasp the potential and risks associated with this opportunity.

Velvet

  • Velvet, in the Seed stage, is raising $4M at a $20M post-money valuation.
  • It aims to utilize generative AI to create a transparent data layer for the private market, expanding from a marketplace to SaaS for VCs.
  • The platform's place in the current market hierarchy and the difficulty of entering relationship-driven business were discussed.

WorldCoin

  • WorldCoin is in the process of raising $500M at a pre-money valuation of $3B.
  • They are working on a large-scale privacy-preserving identity network, with significant backing but also facing privacy concerns.
  • The ethical implications of biometric data collection and competition with established ventures like Nasdaq Private Market were considered.

The evaluation of these opportunities should continue with a balanced view of their potential against market realities and inherent risks. Further due diligence is recommended before proceeding with any potential investment.