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Kylie.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 % of the value of the securities sold and equity compensation equal to % 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 Kylie.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. The contents below 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.

About Kylie.ai

Kylie is a technology layer that clones employee personalities in order to draft and send messages on organization-wide communication platforms. By using deep learning and semantic language models, Kylie can parse dozens of pieces of metadata of incoming company messages to create personalized and empathetic responses in the appropriate company voice. By creating a technology layer, Kylie is able to listen and act across several departments including customer support, marketing and sales.

Product & Service

We provide a cloud-based technology layer that is able to integrate into nearly any text-based communication medium such as Zendesk, Twitter, email, etc, even those that are developed in-house. Our layer automatically clones employee personalities and offers the ability to deploy and scale communication across any of these mediums. Our responses are generated not by humans in the loop, but instead by cutting edge deep learning technology that current solutions in the market have difficulty utilizing due to data complexities. Our proprietary technology includes the ability to train neural nets on relatively small datasets as well as the ability to create new pieces of text in the voice of a human, even if they have never said those sequences of words before.

Media Mentions

Team Story

After two successful exits by the age of 20, Jamasen Rodriguez decided to pursue a more intellectually stimulating challenge in the field of technology. He met Sinan Ozdemir, Johns Hopkins’ youngest ever lecturer by taking his Data Science course and fell in the love with the idea of machine learning and AI. Sinan and Jamasen moved to San Francisco in 2015 just before being accepted into YCombinator’s first Fellowship batch. Today the two founders are creating new possibilities with Kylie’s technology and disrupting corporate communication.

Meet the Founders

While in high school in Modesto, CA, Jamasen started a successful non-profit that to date has brought in over 5 million dollars to help at-risk youths enter college through athletic performance and scholarships. While at Johns Hopkins, Jamasen balanced earning his degree in Economics with his second successful exited company, a wholesale chocolate retailer. Jamasen has also lent his talent to several large scale organizations including Kairos Society, Sandbox, and the Young Entrepreneur Council.

Sinan entered Johns Hopkins University at the age of 17 and by the age of 21 had finished both his Bachelors and Masters in theoretical mathematics specializing in applications of Algebraic Geometry and Cryptography. While obtaining both degrees, Sinan published research for the Department of Homeland Security and issued a patent for an algorithm that monitors and adjusts medical vaccine cold-chain systems. Sinan became Johns Hopkins’ youngest ever lecturer at 21. He designed and taught Hopkins’ first ever data science for undergraduate program and also taught computer science at the graduate level. Sinan has since taught for two universities, published a textbook on data science and AI (with another on the way) and conducted corporate trainings in machine/deep learning for almost a dozen companies.

Jamasen Rodriguez

CEO

While in high school in Modesto, CA, Jamasen started a successful non-profit that to date has brought in over 5 million dollars to help at-risk youths enter college through athletic performance and scholarships. While at Johns Hopkins, Jamasen balanced earning his degree in Economics with his second successful exited company, a wholesale chocolate retailer. Jamasen has also lent his talent to several large scale organizations including Kairos Society, Sandbox, and the Young Entrepreneur Council.

Sinan Ozdemir

CTO

Sinan entered Johns Hopkins University at the age of 17 and by the age of 21 had finished both his Bachelors and Masters in theoretical mathematics specializing in applications of Algebraic Geometry and Cryptography. While obtaining both degrees, Sinan published research for the Department of Homeland Security and issued a patent for an algorithm that monitors and adjusts medical vaccine cold-chain systems. Sinan became Johns Hopkins’ youngest ever lecturer at 21. He designed and taught Hopkins’ first ever data science for undergraduate program and also taught computer science at the graduate level. Sinan has since taught for two universities, published a textbook on data science and AI (with another on the way) and conducted corporate trainings in machine/deep learning for almost a dozen companies.

Key Team Members

Divya Susarla

Data Scientist

Notable Advisors & Investors

Kevin Raheja

Investor, Director of Strategic Partnerships at HubSpot

Alex Vannoni

Investor, Founder in Residence

Clarence Wooten

Investor, Founder, VentureFund.io

Kevin Hale

Investor, Partner, Y Combinator

Rob May

Investor, Founder, Talla; Former Founder, Backupify

Christophe Fraise

Investor, Entrepreneur and Angel Investor

Greg Brockman

Investor, Founder, OpenAI; Former CTO, Stripe

Dharmesh Shah

Investor, Founder & CTO, Hubspot

Elizabeth Galbut

Investor, Partner, A Level Capital & SoGal Ventures

Li Jiang

Investor, Vice President, GSV Asset Management

David Hehman

Investor, Co-Founder & Board Member, Knowingly

Howard Love

Investor, Founder & CEO, LoveToKnow

Nicholas Franco

Investor, Vice President, GSV Asset Management

Q&A with the Founder

  • Could you describe your business model? Product description?
    The business model is enterprise SaaS. We’re targeting the higher mid-market range to lower enterprise--specifically focused on customer support--organizations that have hundreds of agents with thousands of unanswered tickets. Sales will use an annualized contract, with an average contract size of $120k. The sales process starts with an initial one-month pilot, and then you would convert into an annual contract. The typical sales cycle will be between 9-18 months. We are focused on Kylie.ai, an AI that clones personalities that automate communication. We automatically respond to the unanswered tickets and increase ticket throughput of customer support departments. What we can do is help an individual agent answer specific questions and duplicate the capabilities by giving them access to Kylie. If Kylie is confident enough (90% confidence or above), Kylie will automatically answer the ticket without having to bother the agent. The amount of time we save is directly correlated with the amount of money we save the organization.
  • What are the plans for branching out beyond Zendesk?
    Zendesk will launch in April, and then we have a Salesforce application launching in May. Zendesk and Salesforce alone have the most market share within the midmarket/enterprise sectors. The next integrations will be Oracle and SAP. Because of the tech we have built (seamless tech layer) that fits between an agent and their current platform, accessing and integrating with a different medium (Slack, Oracle, etc) is simple. It's extremely easy to connect to those platforms because Kylie is a tech layer and not its own platform.
  • How do you plan to scale following the raise?
    We have two key machine learning hires in the pipeline. We’ve seen that the market rate salary for a PhD in machine learning ranges between $150-200k. We are accounting for these two hires in the raise. What we are building is technologically demanding. Although we have completed enough of the product to go to market, we still need the engineering talent to ensure that the quality of our responses are getting better over time. We also want to hire an additional sales person with an estimated OTE of $120k, but that’s a bit further down the line.
  • What are your potential exits?
    We are focusing on an IPO within 5-7 years. We would be naïve to say that there aren’t other options such as an acquisition by a company like Salesforce. We see some other customer service exits in general, but we believe that the best option is an IPO.
  • What are the barriers to entry and the competitive advantages?
    Barriers to entry into the enterprise, is the enterprise itself. What you have to tackle is create a product that passes specific IT protocols as well as create a customer support product that works with the current legacy technology. If a new entrant were to create a customer support platform, that itself is a barrier to entry into this market because the enterprises are not switching vendors easily; it would be a year-long transition. The competitive advantages are that we have created a technology that is seamless to integrate with any platform. It’s as simple as connecting with that platform and our technology creates drafts in line with the user's current workflow. This is where one of our competitive advantages lie. Then we have a tech advantages. We build personalized AI models. When you’re using deep learning technology you need billions of data points in order to make it converge on the right solution/response. However, we have spent months creating a proprietary tech that allows us to use this lucrative tech on small data sets. This is a tech that we are looking to patent in the future, but for now, it’s a blackbox. We are able to go into these enterprises and seamlessly onboard our product quickly using small amounts of data (500-1000 transactions per person).
  • 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.

    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 shares, 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 Kylie.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 Kylie.ai. Once Kylie.ai accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Kylie.ai in exchange for your shares. At that point, you will be a proud owner in Kylie.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 government-issued identification
    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, Kylie.ai has set a minimum investment amount of US $0.

    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 shares 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 shares in the future?

    Currently there is no market or liquidity for these shares. Right now Kylie.ai does not plan to list these shares on a national exchange or another secondary market. At some point Kylie.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 Kylie.ai either lists their shares 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 Kylie.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 Kylie.ai's Form C. The Form C includes important details about Kylie.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 shares 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 shares 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.