Reinforcing our Learning
Our Investment in Daisy Intelligence
We are pleased to announce our investment in Daisy Intelligence. We welcome Gary and team to the Framework family!
Why did we invest in Daisy Intelligence?
Although Artificial Intelligence has been around since the mid 50’s, its potential and impact has exploded into the mainstream over the past 5 years. People ranging in backgrounds from neophytes to tech geeks, have come to hear about, experience, and begin to understand the power, risks, and promise of AI.
At Framework Venture Partners, we see over 500 companies a quarter across North America with a significant portion claiming to be “AI companies”. From our experience, most of these companies are made up of incredibly smart PhDs, data scientists, and others who in essence operate consulting firms servicing organizations across specific verticals. For the most part, we have not found companies that have been able to productize and monetize AI into millions of dollars in ARR, until now.
Daisy Intelligence, founded by Gary Saarenvirta over 10 years ago, began like many of the others in the field, providing tailored consulting services to certain industry sectors. However, the passion, experience, and importantly, the data exposure allowed the team at Daisy to productize their insights and develop solutions that are now solving real pain points across several verticals.
Retail
With over 10 to the exponent 10,000 pricing possibilities and relationships, the ability for any human or team of humans to effectively and optimally price an assortment of inventory items becomes non-empirical and instead, becomes anecdotal. With Daisy, data is harnessed using easy-to-use and intuitive AI-driven products that can be used by mere mortals trying to answer questions such as, what should our stores put on sale this week, how should we price our inventory in order to grow our same-store sales while optimizing for financing costs provided by suppliers, and many other questions like these. Daisy’s applications have brought meaningful and quantifiable top line and costs improvements, while providing the c-suite with transparency on results achieved without requiring an in-house data science team to support this reporting.
Insurance
Given the success of the underlying algorithms, adjacent markets were explored. Insurance became a pilot and shortly thereafter a new vertical. How? Insurance companies, especially those in Health Benefits and PNC struggle with high percentages of fraud. However, the handling of fraud and claims in general is an incredibly manual process. The result is a bloated workforce trying to manage an enormous number of false positives, and painful friction in the process for customers processing claims. Enter Daisy, who significantly reduces human involvement, but most importantly, reduces false positives by over 90%, removing a terrible source of friction for customers while saving Insurance companies over 80% of their claim processing costs.
At Framework, we deeply believe that productized AI solutions that are integrated and vertical-specific will mark the first wave of business value, much like personal computers did in the late 1960’s. We feel very strongly that these benefits will be profound not only for Daisy’s customers, but also its customers’ customers and other stakeholders.
About Framework Venture Partners
Framework combines a unique data-driven investment decision process with a highly collaborative engagement model designed to help visionary entrepreneurs and CEOs scale world-class companies in high-growth global markets. Framework Venture Partners invests in software companies with a focus on businesses re-imagining the consumption and seamless delivery of financial services within applications used daily, or applying artificial intelligence solutions to large industry-specific datasets.
