Numeric Raises $28M for AI to Kill Accounting
Lex Fridman Podcast of AI
Deep Dive
What is Numeric's primary focus with its AI technology?
Numeric focuses on automating accounting processes using AI, streamlining financial tasks such as reconciliation, flux analysis, and reporting to reduce manual work for accounting teams.
Which major companies are currently using Numeric's AI accounting solutions?
Numeric's clients include Brex, OpenAI, Plaid, and Wealthfront, all of which use its AI-powered accounting tools to manage their financial processes.
How much funding has Numeric raised, and what are the key investors?
Numeric has raised $38 million, including a $28 million Series A round and a $10 million seed round. Key investors include Menlo Ventures, Founders Fund, 8VC, and Access Industries.
What is flux analysis, and how does Numeric's AI handle it?
Flux analysis involves comparing financial data line by line to identify significant changes. Numeric's AI automates this process, flagging outliers and providing explanations for discrepancies, which accountants can then review.
How does Numeric address concerns about AI hallucinations in financial calculations?
Numeric mitigates AI hallucination risks by linking its AI outputs to human review. Accountants verify the AI's work, ensuring accuracy and reliability in financial data.
What sets Numeric apart from competitors in the AI accounting space?
Numeric differentiates itself by combining complex workflows with advanced data integration in a market underserved by tech companies. Its deep moat lies in its ability to marry software and AI effectively.
What is Numeric's growth trajectory in terms of revenue?
Numeric's annual recurring revenue has grown 4x over the past year, a key factor in attracting significant investor interest and enabling rapid funding rounds.
What is the role of generative AI in Numeric's current operations?
While Numeric uses generative AI for synthesizing data, it currently relies on traditional software for calculations. The CEO believes generative AI will increasingly handle these tasks in the future.
Who are Numeric's main competitors in the accounting software market?
Numeric competes with Backline, a publicly traded firm, and FlowQuest, which was last valued at $1.6 billion in its Series E round in April 2023.
What example did Numeric's CEO provide to illustrate the AI's capabilities?
The CEO gave an example where the AI noticed higher legal expenses in October compared to September and explained the increase by citing a specific payment to a law firm, demonstrating its ability to provide detailed financial insights.
- Numeric raised $28 million in Series A funding, following a $10 million seed round five months earlier.
- The company automates accounting processes using AI.
- Major clients include Brex, OpenAI, Plaid, and Wealthfront.
- Annual recurring revenue grew 4x in the last year.
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