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Invest in axle ai

Radically simple video search software

  • $34,500Amount raised
  • $1,000Minimum
  • $6,500,000Valuation cap

Purchased securities are not currently tradeable. Expect to hold your investment until the company lists on a national exchange or is acquired.

axle ai is offering securities under both Regulation D and Regulation CF through SI Securities, LLC ("SI Securities"). SI Securities is an affiliate of SeedInvest Technology, LLC, a registered broker-dealer, and member FINRA/SIPC. SI Securities will receive cash compensation equal to 7.50% of the value of the securities sold and equity compensation equal to 5.00% of the number of securities sold. Investments made under both Regulation D and Regulation CF involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Furthermore, the contents of the Highlights, Term Sheet sections have been prepared by SI Securities and shall be deemed broker-dealer communications subject to FINRA Rule 2210 (the “Excluded Sections”). With the exception of the Excluded Sections noted above, this profile contains offering materials prepared solely by axle ai without the assistance of SI Securities, and not subject to FINRA Rule 2210 (the “Issuer Profile”). The Issuer Profile may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Investors should review the risks and disclosures in the offering's draft. The contents of this profile are meant to be a summary of the information found in the company’s Form C. Before making an investment decision, investors should review the company’s Form C for a complete description of its business and offering information, a copy of which may be found both here and below.


Company Highlights

  • axle ai has sold its software to over 500 customers worldwide including Bleacher Report, Madison Square Garden, NBC Universal, Paramount Studios, Elevation Church, Reebok, REI, and Warner Bros
  • Storage purchased for the media market is expected to grow from $4.5 billion in 2017, to $8.5 billion in 2023.
  • The CEO spent 5 years managing products at industry leader Avid, where he helped grow multiple product lines.
  • Quake Capital is an investor in axle ai – the company also recently graduated from Quake Capital's start accelerator (Fall 2018 cohort).

Fundraise Highlights

  • Total Amount Raised: US $34,500
  • Total Round Size: US $1,500,000
  • Raise Description:  Seed
  • Minimum Investment:  US $1,000 per investor
  • Security Type:  Crowd Note
  • Valuation Cap:  US $6,500,000
  • Offering Type:   Side by Side Offering

As video becomes essential, communicators are challenged to create more and better video content to inform and entertain. Our mission is to make this easier with a simple solution that lets anyone access, share, and organize.


Industry Challenge

Although the use of video content is growing consistently (it already consumes over 70% of Internet bandwidth and 4.5% of storage hardware purchased worldwide), the tools for tagging, searching, and managing it are complex, expensive and not widely deployed.

Today, there are many video teams worldwide, shooting and editing growing amounts of video in a variety of contexts. As video becomes more important, especially for social media, we expect this market to continue expanding. We believe as many as 10% of these teams will need an efficient way to tag, catalog, and manage their content. In addition, new cameras are released continuously, which tend to feature formats such as 4K, 6K, and 8K which take up increasing amounts of storage and further the drive the need to manage content.

What is axle ai?

We provide what we believe are the best solutions to the challenges of the fast-growing scale in media creation. Our core software, axle ai 2018, is being deployed by a wide range of customers who create and manage video. Its artificial intelligence capabilities allow a high degree of video tagging without corresponding amounts of human labor.  Our recently-acquired axle ai connectr software is a visual programming tool aimed at making it easy to build custom workflows, not only around our own products but potentially those of a wide range of tools in the industry.  We are a 17-person company, based in Boston and with team members based in the UK and Eastern Europe.  More than anything, we believe we are ideally positioned to grow with the continuous expansion of our market space over the coming years.

Pitch Deck

Product & Service

Product Overview

axle ai provides media management software designed to make video teams more productive.  We have two main product lines: axle ai 2018 (our core product) and our recently launched axle ai connectr platform, designed as an integration toolset for video software.

  • axle ai 2018 | our flagship product, a browser-based solution for teams who need to tag, search, and collaborate on their media. It can catalog large storage volumes, generate low-res browsable versions of the full-resolution media it finds, and act as an intuitive gateway for a variety of AI-driven tagging and speech transcription tools.
  • axle ai connectr | a toolset for integrating multiple applications in a video workflow. connectr supports axle ai’s own products but can also be used to tie together a range of applications such as media ingest and capture, transcoding, and archiving.

Our platform lets media creators tag, search, and manage their video content. It brings the power of artificial intelligence to dramatically reduce the amount of labor required for this task and features a radically simple browser UI. It addresses a rapidly growing need, as millions of terabytes of video are being captured each year to feed the needs of social media, OTT narrowcasting, and in-house corporate and venue applications. 

Going forward, we expect to offer further integrations of AI capabilities in our core product, as well as addressing issues of further scale and reach (for instance to multi-site deployments). Based on the very enthusiastic reception to our recent launch of connectr at the IBC (International Broadcast Conference) in September, we also expect growing momentum in being the provider of a key visual integration toolset with a for the video industry.

Revenue Model

Our revenue model is primarily the sale of on-premise software to our customers, either via direct sales or through a growing reseller channel. We also have an annual/monthly recurring revenue model through the sale of support contracts and artificial intelligence modules.

axle ai sells its products directly to end customers and through a reseller channel in the US, its largest market, and sells primarily through reseller/integrators in other parts of the world including the EU, Asia/Pacific, and Latin America.

Customers

We have over 500 customers including NBC Universal, Turner, Warner Bros, Madison Square Garden, Reebok, REI, and Price Waterhouse Coopers. 

The main vertical market segments for our products - corporates, venues, higher education, web video, government, broadcast, postproduction, and houses of worship - may appear different but are characterized by very similar workflows, tools, and needs. In each case, creative teams shoot and edit large amounts of video and find many required additional tasks, such as tagging, sorting, and sharing content, to be challenging in their often thinly-staffed, high throughput workflows.

Media Mentions

Q&A with the Founder

  • Have you participated in any accelerator programs? If so, please detail.

    We have recently completed Quake Capital's NY Accelerator and also participated in Expert Dojo's programs in Santa Monica.

  •  Please detail your IP and patents granted/filed.

    Our IP is the software itself, which is server-side web software with a modern, responsive UI.  We have not yet applied for or received any patents, but are beginning to explore areas of innovation where patentable features may be possible.

  • Please describe your typical customer/user profile.

    Our customers are typically teams of 2 to 20 people (we occasionally sell to larger teams as well) who are responsible for creating media content inside a larger organization. A typical team includes one or more videographer(s), editor(s), producer(s), and assistant editor(s), with the roles overlapping and changing fluidly. They all need a way to quickly tag, find and collaborate effectively on the footage. They are used to buying capital equipment such as cameras, lenses, editing workstations, and storage. They usually have partial or complete autonomy from IT department decision-making and are largely Mac-based, even in corporations where Windows predominates. They are not programmers and are highly unlikely to create their own applications, but they are willing to invest in solutions that can make them more productive.

  • What do you view as your closest competitors and what key factors differentiate yourselves? 
    Our closest competitors are Avid, which has recently released an entry level product, and SquareBox Systems. Both are hampered by a complex approach to media management where customers must copy their files to a designated storage area before they can be searched. In addition, the deployed costs of both products are higher and their complexity is off-putting to today's freelance-heavy workforce.

    At the low end, niche storage vendors such as EditShare and SNS are beginning to offer lightweight media management tools bundled with their hardware.

    At the high end, our AI capabilities are beginning to compete with companies like Veritone and GrayMeta, who have targeted the enterprise end of the content creation market. Veritone recently purchased media management provider Wazee digital for $15M; however, Wazee is a 100% cloud solution and does not compete directly with our on-premise capabilities. 

  • Please detail your competitive advantages
    Our main competitive advantages are:

    1. Ease of deployment and use
    2. Affordable price point
    3. Support for existing workflows and folder/file layouts
    4. Integration of AI capabilities
    5. Ability to deliver affordable turnkey appliance
    6. Partner ecosystem, including storage companies

  • The Q&A with the Founder is based on due diligence activities conducted by SI Securities, LLC. The verbal and/or written responses transcribed above may have been modified to address grammatical, typographical, or factual errors, or by special request of the company to protect confidential information.

    Term Sheet

    A Side by Side offering refers to a deal that is raising capital under two offering types. If you plan on investing less than US $20,000.00, you will automatically invest under the Regulation CF offering type. If you invest more than US $20,000.00, you must be an accredited investor and invest under the Regulation D offering type.

    Fundraising Description

  • Round type:
    Seed

  • Round size:
    US $1,500,000

  • Raised to date:
    US $34,500
    US $34,500 (under Reg CF only)

  • Minimum investment:
    US $1,000

  • Target Minimum:
    US $200,000

  • Maximum Raise Amount:
    US $1,500,000
  • Key Terms

  • Security Type:
    Crowd Note

  • Conversion discount:
    20.0%

  • Valuation Cap:
    US $6,500,000

  • Interest rate:
    6.0%

  • Note term:
    24 months
  • Additional Terms

  • Investment Proxy Agreement

    All non-Major Purchasers will be subject to an Investment Proxy Agreement "IPA". The IPA will authorize SeedInvest to act as representative for each non-Major Purchaser and take certain actions for their benefit and on their behalf. Please see a copy of the IPA included with the Company's offering materials for additional details.


  • Closing conditions:
    While axle ai has set an overall target minimum of US $200,000 for the round, axle ai must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to axle ai's Form C.

  • Regulation CF cap:
    While axle ai is offering up to US $1,500,000 worth of securities in its Seed, only up to US $1,070,000 of that amount may be raised through Regulation CF.

  • Transfer restrictions:
    Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

  • Use of Proceeds

    Investor Perks

    All investors | aixle ai bound notebook and coordinated Muji pen

    $5,000 |  the above plus a permanent license of the Mac version of axle ai connectr™ for up to 2 CPU cores

    $10,000 | the above plus a permanent license of the Mac version of axle ai connectr™ for 2 additional cores (4 cores total). 

    $25,000 | the above plus a 30 minute scheduled strategy call with the CEO

    $50,000 | the above plus a one hour in-person meeting (travel costs not included) or extended call

    It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.

    Prior Rounds

    The graph below illustrates the valuation cap or the pre-money valuation of axle ai's prior rounds by year.


    This chart does not represent guarantees of future valuation growth and/or declines.

    Pre-Seed

  • Round Size
    US $603,000
  • Closed Date
    Dec 31, 2015
  • Security Type
    Preferred Equity
  • Seed

  • Round Size
    US $150,000
  • Closed Date
    Jul 25, 2018
  • Security Type
    Convertible Note
  • Valuation Cap
    US $3,750,000
  • Financial Discussion

    Operations

    Axle AI, Inc. was originally formed in January of 2013 as a Limited Liability Company under the laws of the State of Massachusetts and later on July 16, 2018 converted to a C‐Corporation under the laws of the State of Delaware, and is headquartered in Boston, Massachusetts. The Company’s wholly owned subsidiary, Axle Video Limited was incorporated on May 27, 2015 as a UK Corporation under the laws of the United Kingdom and is located in Chesham, England. Axle AI, Inc. uses the power of deep learning software to provide automatic analysis, indexing and searching of video. Axle AI eases the burden by enabling searches based on images and automatic content tagging, provided by cutting‐edge AI that is constantly improving. The subsidiary was created for the purpose of servicing UK customers.

    For the year ending December 31, 2017, it recognized revenue of $824,233, with a cost of goods sold (COGS) of $131,195, resulting in gross profit of $693,038. In the same financial year, the company incurred expenses of $771,218, representing a net loss of $139,299. For the prior year, it recognized revenue of $664,398, with a COGS of $100,445, resulting in gross profit of $563,953. In the same financial year, the company incurred expenses of $704,853, representing a net loss of $139,271.

    Liquidity and Capital Resources

    The proceeds from the Offering are essential to our operations. We plan to use the proceeds as set forth above under "Use of Proceeds", which is an indispensable element of our business strategy. The Offering proceeds will have a beneficial effect on our liquidity, as we have approximately $20,000 in cash on hand as of October 8, 2018 which will be augmented by the Offering proceeds and used to execute our business strategy.

    The Company currently does not have any additional outside sources of capital other than the proceeds from the Combined Offerings.

    Capital Expenditures and Other Obligations

    The Company does not intend to make any material capital expenditures in the future.

    Trends and Uncertainties

    After reviewing the above discussion of the steps the Company intends to take, potential Purchasers should consider whether achievement of each step within the estimated time frame is realistic in their judgment. Potential Purchasers should also assess the consequences to the Company of any delays in taking these steps and whether the Company will need additional financing to accomplish them.

    The financial statements are an important part of the Form C and should be reviewed in their entirety. The financial statements of the Company are attached to the Form C as Exhibit B.

    Market Landscape

    Total addressable market for media storage


    Media content creation is undergoing change.  This work was once concentrated in a few large media companies, most broadcasters, and movie studios. Now a massive trend is underway towards decentralized creative work, with a much larger number of teams in organizations across the economic spectrum as video becomes widely used for social media. Key sites include Fortune 500 companies; sports leagues, teams, and venues; houses of worship; universities and colleges; government organizations; and of course independent video production companies in addition to the traditional media brands.

    While we expect the traditional large broadcasters and movie studios to leverage new technology to a degree, we anticipate much faster adoption by the newer video content creation teams. These don't have the baggage of legacy systems, workflows, and union rules, and are able to move rapidly to adopt whatever new tools will make them more productive.

    axle ai hopes to be a leader in this new space.  However, there are dozens of companies with adjacent products, primarily in four broad categories:

    1. Enterprise media asset management (MAM) solutions providers could come down-market to compete. We are already seeing this trend from companies like Avid and Sony, who are potential competitors.
    2. Cloud-based storage providers targeting video; as they add AI and media management capabilities as well as some on-premise gateway toolsets.
    3. Computer vision and artificial intelligence companies, who may begin to provide turnkey solutions for the media space.
    4. On-premise storage companies adding aspects of MAM, AI, and workflow software to their offerings to provide differentiation.

    While few of our prospects seem to be evaluating these vendors on a head-to-head basis against axle ai, it's likely that more direct competition may emerge over time.

    Risks and Disclosures

    We have not prepared any audited financial statements. Therefore, you have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make your investment decision. If you feel the information provided is insufficient, you should not invest in the Company.

    The Company relies heavily on their technology and intellectual property, but they may be unable to adequately or cost-effectively protect or enforce their intellectual property rights, thereby weakening their competitive position and increasing operating costs. To protect their rights in our services and technology, they rely on a combination of copyright and trademark laws, patents, trade secrets, confidentiality agreements with employees and third parties, and protective contractual provisions. They also rely on laws pertaining to trademarks and domain names to protect the value of their corporate brands and reputation. Despite their efforts to protect their proprietary rights, unauthorized parties may copy aspects of their services or technology, obtain and use information, marks, or technology that they regard as proprietary, or otherwise violate or infringe their intellectual property rights. In addition, it is possible that others could independently develop substantially equivalent intellectual property. If they do not effectively protect their intellectual property, or if others independently develop substantially equivalent intellectual property, their competitive position could be weakened.

    Effectively policing the unauthorized use of their services and technology is time-consuming and costly, and the steps taken by them may not prevent misappropriation of their technology or other proprietary assets. The efforts they have taken to protect our proprietary rights may not be sufficient or effective, and unauthorized parties may copy aspects of their services, use similar marks or domain names, or obtain and use information, marks, or technology that they regard as proprietary. They may have to litigate to enforce their intellectual property rights, to protect their trade secrets, or to determine the validity and scope of others’ proprietary rights, which are sometimes not clear or may change. Litigation can be time-consuming and expensive, and the outcome can be difficult to predict.

    We may not be successful in obtaining registered trademarks or issued patents. Our success depends significantly on our ability to obtain, maintain and protect our proprietary rights to the technologies used in our services. We are not currently protected from our competitors. Moreover, any patents which might be issued to us may be challenged, invalidated, found unenforceable or circumvented in the future. Any intellectual enforcement efforts the Company seeks to undertake, including litigation, could be time-consuming and expensive and could divert management’s attention.

    Our failure to deliver high-quality server solutions could damage our reputation and diminish demand for our products, and subject us to liability. Our customers require our products to perform at a high level, contain valuable features and be extremely reliable. The design of our server solutions is sophisticated and complex, and the process for manufacturing, assembling and testing our server solutions is challenging. New flaws or limitations in our products may be detected in the future. Part of our strategy is to bring new products to market quickly, and first-generation products may have a higher likelihood of containing undetected flaws. If our customers discover defects or other performance problems with our products, our customers’ businesses, and our reputation may be damaged. Customers may elect to delay or withhold payment for defective or underperforming products, request remedial action, terminate contracts for untimely delivery, or elect not to order additional products. If we do not properly address customer concerns about our products, our reputation and relationships with our customers may be harmed. In addition, we may be subject to product liability claims for a defective product. Any of the foregoing could have an adverse effect on our business and results of operations.

    Maintaining, extending and expanding our reputation and brand image are essential to our business success. We seek to maintain, extend, and expand our brand image through marketing investments, including advertising and consumer promotions, and product innovation. Increasing attention on marketing could adversely affect our brand image. It could also lead to stricter regulations and greater scrutiny of marketing practices. Existing or increased legal or regulatory restrictions on our advertising, consumer promotions and marketing, or our response to those restrictions, could limit our efforts to maintain, extend and expand our brands. Moreover, adverse publicity about regulatory or legal action against us could damage our reputation and brand image, undermine our customers’ confidence and reduce long-term demand for our products, even if the regulatory or legal action is unfounded or not material to our operations.

    In addition, our success in maintaining, extending, and expanding our brand image depends on our ability to adapt to a rapidly changing media environment. We increasingly rely on social media and online dissemination of advertising campaigns. The growing use of social and digital media increases the speed and extent that information or misinformation and opinions can be shared. Negative posts or comments about us, our brands or our products on social or digital media, whether or not valid, could seriously damage our brands and reputation. If we do not establish, maintain, extend and expand our brand image, then our product sales, financial condition and results of operations could be adversely affected.

    The Company has received an extension on its 2017 tax filing, and may end up overdue, which could subject it to penalties, fines, or interest changes, and which could indicate a failure to maintain adequate financial controls and safeguards. In particular, the Internal Revenue Service (IRS) could impose the Company with costly penalty and interest charges if the Company has filed its tax return late, or has not furnished certain information by the due date. In addition, even if the Company has filed an extension, if it underestimated its taxes, the IRS could penalize it. Potential tax consequences could adversely affect the Company’s results of operations or financial condition.

    The Company has not filed a Form D for its Convertible Note offering from June 2018. The SEC rules require a Form D to be filed by companies within 15 days after the first sale of securities in the offering relying on Regulation D. Failing to register with the SEC or get an exemption may lead to fines, the right of investors to get their investments back, and even criminal charges. There is a risk that a late penalty could apply.

    Our business could be negatively impacted by cyber security threats, attacks, and other disruptions. Like others in our industry, we continue to face advanced and persistent attacks on our information infrastructure where we manage and store various proprietary information and sensitive/confidential data relating to our operations. These attacks may include sophisticated malware (viruses, worms, and other malicious software programs) and phishing emails that attack our products or otherwise exploit any security vulnerabilities. These intrusions sometimes may be zero-day malware that are difficult to identify because they are not included in the signature set of commercially available antivirus scanning programs. Experienced computer programmers and hackers may be able to penetrate our network security and misappropriate or compromise our confidential information or that of our customers or other third-parties, create system disruptions, or cause shutdowns. Additionally, sophisticated software and applications that we produce or procure from third-parties may contain defects in design or manufacture, including "bugs" and other problems that could unexpectedly interfere with the operation of the information infrastructure. A disruption, infiltration or failure of our information infrastructure systems or any of our data centers as a result of software or hardware malfunctions, computer viruses, cyber attacks, employee theft or misuse, power disruptions, natural disasters or accidents could cause breaches of data security, loss of critical data and performance delays, which in turn could adversely affect our business.

    We are subject to rapid technological change and dependence on new product development. Our industry is characterized by rapid and significant technological developments, frequent new product introductions and enhancements, continually evolving business expectations and swift changes. To compete effectively in such markets, we must continually improve and enhance its products and services and develop new technologies and services that incorporate technological advances, satisfy increasing customer expectations and compete effectively on the basis of performance and price. Our success will also depend substantially upon our ability to anticipate, and to adapt our products and services to our collaborative partner’s preferences. There can be no assurance that technological developments will not render some of our products and services obsolete, or that we will be able to respond with improved or new products, services, and technology that satisfy evolving customers’ expectations. Failure to acquire, develop or introduce new products, services, and enhancements in a timely manner could have an adverse effect on our business and results of operations. Also, to the extent one or more of our competitors introduces products and services that better address a customer’s needs, our business would be adversely affected.

    The reviewing CPA has included a “going concern” note in the reviewed financials. The Company has incurred losses from inception of approximately $531,485 which, among other factors, raises substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon management's plans to raise additional capital from the issuance of debt or the sale of stock, its ability to commence profitable sales of its flagship product, and its ability to generate positive operational cash flow.

    The Company is overdue on its 2017 tax filing, which could subject it to penalties, fines, or interest changes, and which could indicate a failure to maintain adequate financial controls and safeguards. In particular, the Internal Revenue Service (IRS) could impose the Company with costly penalty and interest charges if the Company has filed its tax return late, or has not furnished certain information by the due date. In addition, even if the Company has filed an extension, if it underestimated its taxes, the IRS could penalize it. Potential tax consequences could adversely affect the Company’s results of operations or financial condition. 

    General Risks and Disclosures

    Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.

    Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.

    The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.

    Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.

    You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events through continuing disclosure that you can use to evaluate the status of your investment.

    Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company's employees, including its management. You should carefully review any disclosure regarding the company's use of proceeds.

    Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.

    Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company's board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.

    Representatives of SI Securities, LLC are affiliated with SI Advisors, LLC (“SI Advisors”). SI Advisors is an exempt investment advisor that acts as the General Partner of SI Selections Fund I, L.P. (“SI Selections Fund”). SI Selections Fund is an early stage venture capital fund owned by third-party investors. From time to time, SI Selections Fund may invest in offerings made available on the SeedInvest platform, including this offering. Investments made by SI Selections Fund may be counted towards the total funds raised necessary to reach the minimum funding target as disclosed in the applicable offering materials.

    axle ai's Form C

    The Form C is a document the company must file with the Securities and Exchange Commission, which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Download axle ai's  Form C

    Frequently Asked Questions

    About Side by Side Offerings
    What is Side by Side?

    A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.


    What is a Form C?

    The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.


    What is Rule 506(c) under Regulation D?

    Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.


    What is Reg CF?

    Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive securities, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.


    Making an Investment in axle ai
    How does investing work?

    When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by axle ai. Once axle ai accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to axle ai in exchange for your securities. At that point, you will be a proud owner in axle ai.


    What will I need to complete my investment?

    To make an investment, you will need the following information readily available:

    1. Personal information such as your current address and phone number
    2. Employment and employer information
    3. Net worth and income information
    4. Social Security Number or passport
    5. ABA bank routing number and checking account number (typically found on a personal check or bank statement)

    If you are investing under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.


    How much can I invest?

    An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:

    • If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
    • If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.

    Separately, axle ai has set a minimum investment amount of US $1,000.

    Accredited investors investing $20,000 or over do not have investment limits.


    After My Investment
    What is my ongoing relationship with the Issuer?

    You are a partial owner of the company, you do own securities after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.

    In certain circumstances a company may terminate its ongoing reporting requirement if:

    1. The company becomes a fully-reporting registrant with the SEC
    2. The company has filed at least one annual report, but has no more than 300 shareholders of record
    3. The company has filed at least three annual reports, and has no more than $10 million in assets
    4. The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
    5. The company ceases to do business

    However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.


    How can I sell my securities in the future?

    Currently there is no market or liquidity for these securities. Right now axle ai does not plan to list these securities on a national exchange or another secondary market. At some point axle ai may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when axle ai either lists their securities on an exchange, is acquired, or goes bankrupt.


    How do I keep track of this investment?

    You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.


    Other General Questions
    What is this page about?

    This is axle ai's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the axle ai's Form C. The Form C includes important details about axle ai's fundraise that you should review before investing.


    How can I (or the company) cancel my investment under Regulation CF?

    For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your securities have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your portfolio page


    What if I change my mind about investing?

    If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.