accessibilityaccreditedactiveactivityaimalarmalign-bottomalign-center-horizontalalign-center-verticalalign-leftalign-rightalign-topanchorangelannoyedapplearchivearrow-downarrow-leftarrow-rightarrow-uparticleat-signawardbalanceballoonbandaidbarcodebellbicyclebinocularsblindboatbook-closedbookbookmarkbookmarkedbooksbottlebriefcasebrushbugbullhornbuscabinetcakecalendarcameracarcashcertificatechalkchart-barschart-linechart-piechatcheckmarkchevron-downchevron-leftchevron-rightchevron-upcircle-arrow-downcircle-arrow-leftcircle-arrow-rightcircle-arrow-upcircle-backwardcircle-checkmarkcircle-chevron-downcircle-chevron-leftcircle-chevron-rightcircle-chevron-upcircle-crosscircle-ejectcircle-exclamationcircle-facebookcircle-firstcircle-forwardcircle-googlepluscircle-gustcircle-lastcircle-linkedincircle-minuscircle-nextcircle-pausecircle-play-thincircle-playcircle-pluscircle-previouscircle-questioncircle-stopcircle-twittercircleclipboard-checkclipboardclockcloud-databasecloud-downloadcloud-fogcloud-gearcloud-lightningcloud-lockcloud-raincloud-snowcloud-synccloud-uploadcloudcocktail-glasscodecombinecomment-fillcommentcommentscompassconfusedconnectconstruction-coneconstructioncontactscoolcopycredit-cardcropcrosscrowncubedatabasedeletedesigndesktopdiamonddicedinnerdisconnectdocumentdownloaddrawerdreamdropletdumbbellearthediteggellipsisenter-downenter-leftenter-rightenter-upenterenvelopeevilexcludeexit-downexit-leftexit-rightexit-upexitexpandeye-droppereyefacebookfactoryfeatherfile-audiofile-codefile-imagefile-videofile-zipfilefilm-playfindfirefirst-aidflagflip-horizontalflip-verticalfloppy-diskfolderfootprintframefunnelgamepadgasgeargiftglassglassesgoogleplusgraduationgrin-evilgringroupgungusthamburgerhammerhappy-grinhappyheadsetheart-fillhearthistoryhomeiconsinboxintersectipadiphonekeykeyboardkeyholeknifelablamplaptopleafleave-downleave-leftleave-rightleave-uplibrarylifebuoylighterlightning-boltlinklinkedinlistlocationlocklotusmadmagicmagnetmalletmanmapmedalmeet-downmeet-leftmeet-rightmeet-upmic-mutemicminusmoonmousemovemusic-notemusicmustachemutenavigationneutralnewsoptionsoutletpaint-rollerpaintbrushpairpaper-planepaperclippaperspastepatchpawpenpencilphonephotopicturepinpine-treeplaneplayplaylistplug-cordpluspodiumpowerpresentationprinterprofilepulsepuzzlequestionquote-closequote-openradiorank1rank2rank3receptionrecycleredorefreshregisterreply-allreplyroad-signrocketrulersadscissorsscreensearchshareshieldshipshirtshockedshrinkshufflesignalsitemapskullsmartphonesmilespeed-fastspeed-mediumspeed-slowspell-checksquaresubtractsunsyncsyringetabtablettagtagstargetteacupterminalthumbs-downthumbs-uptickettilestimertoilet-papertonguetoolstrailertraintransmissiontrashtreetrophytrucktvtwitterumbrellaundounlinkunlockuploaduserusersvolume-highvolume-lowvolume-mediumvolumewarningwheelchairwifiwinkwomanwonderingwrenchzoom-inzoom-out

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 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 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.

Customer Service Industry

$26+ Billion

Ai Assistant Industry (Projected 2024)

$12.28 Billion

  • Founders went through Y Combinator Fall 2015 Fellowship
  • Developed an expert team with domain expertise in machine learning from Johns Hopkins University
  • Investors include the founder of OpenAi
  • Amount raised:  
  • Close date:  
  • Indicated Interest:  
  • Raise Description:  Seed
  • Minimum Investment:  US $500 per investor
  • Security Type:  Crowd Note
  • Valuation Cap:  US $5,000,000
  • Offering Type:   Side by Side Offering

Customers want a great experience when engaging with support. Kylie gives organizations the ability to provide this experience at scale.


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.

Pitch Deck

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.

    Side by Side 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.


    Terms & DescriptionRegulation D - Rule 506(c)Regulation CF
    Investor TypesAccredited OnlyAccredited and Non-accredited
    Round descriptionSeedSeed
    Round sizeUS $1,500,000US $1,500,000
    Amount raisedUS $606,000US $21,550
    Minimum investment$20,000US $500
    Target minimumUS $120,000US $120,000
    Security typeCrowd NoteCrowd Note
    Conversion discount15.0%15.0%
    Valuation capUS $5,000,000US $5,000,000
    Closing AmountThe Company is making concurrent offerings under both Regulation CF and Regulation D (the "Combined Offerings"). Unless the Company raises at least the Target Amount of $100,000 under the Regulation CF offering and a total of $120,000 under the Combined Offerings (the “Closing Amount”) by June 2, 2017, no securities will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned.The Company is making concurrent offerings under both Regulation CF and Regulation D (the "Combined Offerings"). Unless the Company raises at least the Target Amount of $100,000 under the Regulation CF offering and a total of $120,000 under the Combined Offerings (the “Closing Amount”) by June 2, 2017, no securities will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned.

    Prior Rounds

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


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

    Pre-Seed 2

  • Round Size
    US $70,000
  • Close Date
    Aug 3, 2016
  • Security Type
    Convertible Note
  • Valuation Cap
    US $5,000,000
  • Pre-Seed 1

  • Round Size
    US $10,000
  • Close Date
    Dec 7, 2015
  • Security Type
    Convertible Note
  • Valuation Cap
    US $2,500,000
  • Seed

  • Round Size
    US $351,000
  • Close Date
    Feb 20, 2017
  • Security Type
    Convertible Note
  • Valuation Cap
    US $6,000,000
  • Financial Discussion

    Please see the financial information listed on the cover page of the Form C attached to this profile in addition to the following information.

    Operations

    We believe that our prior earnings and cash flows are not indicative of future earnings and cash flows because we have pivoted the business model recently.

    The Company does not expect to achieve profitability in the next 12 months and intends to focus on the developing their AI algorithms.

    The Company currently requires $20,000 a month to sustain operations.

    Liquidity and Capital Resources

    The proceeds of the offering are not necessary to the operations of the Company, however, they will prolong the runway of the company. 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 currently have ~6 months of runway.

    The Company does not have any additional sources of capital other than the proceeds from the Offering.

    Capital Expenditures and Other Obligations

    The Company has not made any material capital expenditures in the past two years.

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

    Material Changes and Other Information Trends and Uncertainties

    The Company does not currently believe it is subject to any trends or 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 judgement. 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 this Form C and should be reviewed in their entirety. The financial statements of the Company are attached hereto as Exhibit B.

    Valuation

    As discussed in “Dilution” below, the valuation will determine the amount by which the investor’s stake is diluted immediately upon investment. An early-stage company typically sells its shares (or grants options over its shares) to its founders and early employees at a very low cash cost, because they are, in effect, putting their “sweat equity” into the company. When the company seeks cash investments from outside investors, like you, the new investors typically pay a much larger sum for their shares than the founders or earlier investors, which means that the cash value of your stake is immediately diluted because each share of the same type is worth the same amount, and you paid more for your shares (or the notes convertible into shares) than earlier investors did for theirs.

    There are several ways to value a company, and none of them is perfect and all of them involve a certain amount of guesswork. The same method can produce a different valuation if used by a different person.

    Liquidation Value — The amount for which the assets of the company can be sold, minus the liabilities owed, e.g., the assets of a bakery include the cake mixers, ingredients, baking tins, etc. The liabilities of a bakery include the cost of rent or mortgage on the bakery. However, this value does not reflect the potential value of a business, e.g. the value of the secret recipe. The value for most startups lies in their potential, as many early stage companies do not have many assets (they probably need to raise funds through a securities offering in order to purchase some equipment).

    Book Value — This is based on analysis of the company’s financial statements, usually looking at the company’s balance sheet as prepared by its accountants. However, the balance sheet only looks at costs (i.e. what was paid for the asset), and does not consider whether the asset has increased in value over time. In addition, some intangible assets, such as patents, trademarks or trade names, are very valuable but are not usually represented at their market value on the balance sheet.

    Earnings Approach — This is based on what the investor will pay (the present value) for what the investor expects to obtain in the future (the future return), taking into account inflation, the lost opportunity to participate in other investments, the risk of not receiving the return. However, predictions of the future are uncertain and valuation of future returns is a best guess.

    Different methods of valuation produce a different answer as to what your investment is worth. Typically liquidation value and book value will produce a lower valuation than the earnings approach. However, the earnings approach is also most likely to be risky as it is based on many assumptions about the future, while the liquidation value and book value are much more conservative.

    Future investors (including people seeking to acquire the company) may value the company differently. They may use a different valuation method, or different assumptions about the company’s business and its market. Different valuations may mean that the value assigned to your investment changes. It frequently happens that when a large institutional investor such as a venture capitalist makes an investment in a company, it values the company at a lower price than the initial investors did. If this happens, the value of the investment will go down.

    Market Landscape

    Data Source: Gartner - World Wide CRM Market 2012-2017 - 15.2% CAGR


    Kylie.ai operates in the $26 billion Customer Relationship Management (CRM) market, which comprises largely of customer service, customer experience management, and customer support. The CRM market is growing at a 15.2% CAGR according to recent estimates, and includes key players include Salesforce, SAP, Oracle, and Adobe.

    The competitive landscape of this market can be broken down into three categories:

    1. Existing alternatives: To improve the efficiency of customer support reps, current applications offer "template" solutions where responses are pre-filled and ready for an agent to copy and paste. This alternative causes a heavy cognitive load on the agent and requires the agent to understand which template would be the best response to any given customer. 
    2. Outsourcing: To reduce costs and save time, organizations outsource their customer support. This ultimately leads to a damaged customer relationship and lower lifetime value due to the quality of outsourced responses and inconsistency with brand image.
    3. New entrants: Over the last year, new players have entered this space to help customer support reduce AHT (average handling time). These comprise mostly small organizations leveraging technology to surface the best response by automating the template process. 

    How we are different

    We offer a customizable, high quality and easily deployed ai that rests seamlessly within users' current platforms. Kylie is built as a technology layer that can automate conversations in most text based platforms - even those that are made in house.

    Our headquarters are located in the heart of the Bay Area, allowing us to be close to investors, top quality engineering talent and leading customer support partners.

    Risks and Disclosures

    We have a limited operating history upon which you can evaluate our performance, and accordingly, our prospects must be considered in light of the risks that any new company encountersWe were incorporated under the laws of Delaware on February 12, 2014. Accordingly, we have no history upon which an evaluation of our prospects and future performance can be made. Our proposed operations are subject to all business risks associated with new enterprises. The likelihood of our creation of a viable business must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the inception of a business, operation in a competitive industry, and the continued development of an enterprise client base. We anticipate that our operating expenses will increase for the near future. You should consider the Company's business, operations and prospects in light of the risks, expenses and challenges faced as an early-stage company.

    The Company's success depends on the experience and skill of its executive officers, key employees and board of directors and advisors. In particular, the Company is dependent on Jamasen Rodriguez and Sinan Ozdemir who are Chief Executive Officer, and Chief Technology Officer of the Company in order to conduct its operations and execute its business plan. The loss of Jamasen Rodriguez and Sinan Ozdemir or any key member of the team could harm the Company's business, financial condition, cash flow and results of operations.

    The Company is currently undergoing a pivot from Legion Analytics (a lead generation business model) to Kylie.ai. The Company has completely shut down its lead generation operations to focus completely on the Kylie.ai (technology which clones personalities and automates communications for services like ZenDesk and SalesForce). The company’s historical financials to date are non-representative of the company’s operations going forward.

    The Company is focusing on enterprise customers and believe the timing necessary to acquire an enterprise customer could take as long as 1 year or more. The sales process involve signing annualized contracts with enterprise clients. Given the length of time to negotiate, pilot and onboard enterprise clients, there is an elevated risk associated with the company hitting their projected financial targets and there is an increased risk in the company depleting its cash reserves quicker than expected.

    Failure to obtain new clients or renew client contracts on favorable terms could adversely affect results of operations. We may face pricing pressure in obtaining and retaining our enterprise clients. Our clients may be able to seek price reductions from us when they renew a contract, when a contract is extended, or when the client's business has significant volume changes. They may also reduce services if they decide to move services in-house. On some occasions, this pricing pressure results in lower revenue from a client than we had anticipated based on our previous agreement with that client. This reduction in revenue could result in an adverse effect on our business and results of operations.

    The amount of capital the Company is attempting to raise in this offering is not enough to sustain the Company's current business plan. In order to achieve the Company's near and long-term goals, the Company will need to procure funds in addition to the amount raised in the offering. There is no guarantee the Company will be able to raise such funds on acceptable terms or at all. If the Company is not able to raise sufficient capital in the future, we will not be able to execute our business plan, our continued operations will be in jeopardy and we may be forced to cease operations and sell or transfer all or substantially all of our remaining assets, which could cause a Purchaser to lose all or a portion of his or her investment.

    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 releases, and evolving business expectations. To compete effectively in such markets, we must continually improve and enhance our products and develop new technologies and services that incorporate technological advances, satisfy increasing customer expectations and compete effectively on the basis of performance and price. 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.

    Our operating results may fluctuate due to factors that are difficult to forecast and not within our control. Our past operating results may not be accurate indicators of future performance, and you should not rely on such results to predict our future performance. Our operating results have fluctuated significantly in the past, and could fluctuate in the future. Factors that may contribute to fluctuations include: changes in aggregate capital spending, cyclicality and other economic conditions, or domestic and international demand in the industries we serve;  our ability to effectively manage our working capital; our ability to satisfy consumer demands in a timely and cost-effective manner; pricing; our inability to adjust certain fixed costs and expenses for changes in demand; shifts in geographic concentration of customers.

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

    Industry consolidation may result in increased competition, which could result in a loss of customers or a reduction in revenue. Some of our competitors have made or may make acquisitions or may enter into partnerships or other strategic relationships to offer more comprehensive services than they individually had offered or achieve greater economies of scale. In addition, new entrants not currently considered to be competitors may enter our market through acquisitions, partnerships or strategic relationships. We expect these trends to continue as companies attempt to strengthen or maintain their market positions. The potential entrants may have competitive advantages over us, such as greater name recognition, longer operating histories, more varied services and larger marketing budgets, as well as greater financial, technical and other resources. The companies resulting from combinations or that expand or vertically integrate their business to include the market that we address may create more compelling service offerings and may offer greater pricing flexibility than we can or may engage in business practices that make it more difficult for us to compete effectively, including on the basis of price, sales and marketing programs, technology or service functionality. These pressures could result in a substantial loss of our customers or a reduction in our revenue.

    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.

    Kylie.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 Kylie.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 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.


    What is a Crowd Note?

    The Crowd Note is a security which allows crowd investors to largely realize the same economic benefit traditional investors have historically received when investing in startups. For a convertible note round, investors under $20,000 will have their investment convert into preferred equity at liquidity event, locking in a share price at a discount to the next priced round, and will have an interest rate on their investment. Investors investing $20,000 and over will convert into preferred equity at the subsequent priced round at a discount to that priced round and will have an interest rate on their investment. For a priced round, investors under $20,000 will have their investment convert into preferred equity at a liquidity event, locking in the share price of the current round.


    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 $500.

    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, let SeedInvest know by emailing cancellations@seedinvest.com. Please include your name, the company's name, the amount, the investment number, and the date your made your investment.


    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 email us at cancellations@seedinvest.com. Please include your name, the company's name, the amount, the investment number, and the date your made your investment.