Standard Cognition is killing the checkout line, and we love it
CRV has been investing in AI, machine learning and natural language processing applications for a few years now. Our investments in Rethink Robotics, Airobotics, Jibo, Vlingo and Accompany have given us a ringside seat to the dawn of an AI revolution powered by recent advances in real-time voice, image and text analytics. We’re adrenalized about how deep learning has made it possible for today’s crop of startups to build incredibly disruptive systems that would not have been possible even a few years ago. One such opportunity lies in the next-generation of offline retail.
With almost 85% of Americans living in urban areas with limited real estate, and more and more people doing their routine and stock-up shopping online, large retailers need to focus on offering immediate and efficient offline shopping experiences in order to survive. Target, Walmart and Kroger are a few big box and mall-based retailers who have felt the pressure and launched small format “convenience” stores. Yet, the problem still remains: long lines kill the physical shopping experience. Retailers need to re-focus their mindset from average basket size, to offering true convenience. In order to create a truly “convenient” shopping experience, autonomous checkout needs to be solved. Amazon Go and Walmart Scan & Go are some of the first examples of large retailers making attempts to solve this problem, though not without glitches.
Enter Standard Cognition: We met founders, Jordan Fisher and Michael Suswal, right after the company graduated from Y Combinator. Fisher built and led the data science team for the U.S. Securities & Exchange Commission (SEC) and, prior to that, him and Suswal co-founded a computer gaming company. The team blew us away with their conviction and intensity: hyper-focused on creating the best AI-powered checkout experience. They are dedicated to delivering a state-of-the-art system for retailers of all sizes to create a magical experience for consumers and reduce time spent in the check-out line to zero. Additionally, it will help retailers become more efficient in labor and space, while reducing inventory outages and theft.
We are a conviction-driven partnership, and the more time we spent with Jordan and Michael, the stronger our belief in them grew. A walk-through of the prototype store, and spending the evening with the rest of the founding team (David, John, Brandon, Dan and TJ), blew us away. We are proud to have led the investment in Standard Cognition, and welcome them to the CRV family!
— Devdutt Yellurkar
