Target Information

We are pleased to announce our investment in Rulebase, an innovative AI coworker platform designed to enhance back-office operations within the financial services sector. Recently, we led a $2.1 million pre-seed funding round, collaborating with investors such as Y Combinator, Commerce Ventures, Transpose Platform VC, and several strategic angel investors. This investment stems from our recognition of the emerging trend of AI applications in back-office functions, particularly those tackling the intricate operational and compliance challenges faced by financial institutions daily.

Rulebase was founded by Gideon Ebose and Chidi Williams, who aim to deploy AI agents that efficiently manage essential but often overlooked back-office tasks crucial for the smooth operation of financial services. Gideon has extensive product experience from his tenure as a product lead at Microsoft, while Chidi brings exceptional engineering expertise from Goldman Sachs and the successful creation of the widely used open-source speech-to-text tool Buzz, which has amassed over 300,000 downloads and 12,000 GitHub stars. Meeting in London, these two Nigerian engineers share a commitment to solving complex operational issues through innovative AI solutions. We were remarkably impressed by their technical depth and their ambitious vision for transforming financial operations from our very first encounter.

Industry Overview

The financial services sector is known for its complex and heavily regulated environment, with firms allocating substantial resources towards support ticket resolution, dispute management, quality assurance, and regulatory compliance. These critical functions have historically depended on manual procedures that are not only error-prone but also inefficient. Rulebase's AI platform addresses these challenges by automating workflows across existing systems such as Zendesk, Jira, and Slack, ensuring the necessary human oversight that financial institutions demand.

What differentiates Rulebase is its unique focus on automating workflows triggered by customer service interactions, particularly in the area of quality assurance. In this realm, traditional QA teams have been limited to manually reviewing only 3-5% of support interactions for compliance. In stark contrast, Rulebase's solution automatically assesses 100% of client interactions, leading to cost reduction of up to 70% and significantly improved compliance coverage. This capability demonstrates the platform's essential role in solving the common operational bottlenecks faced by financial institutions of all sizes.

Rulebase has already begun gaining traction, being deployed by clients such as Rho, a prominent business banking platform in the U.S., where the platform has successfully reduced escalations by 30%, in addition to partnering with a Fortune 50 financial institution. Since our investment, the company has experienced impressive momentum, with double-digit month-over-month revenue growth, underscoring strong market demand for its solutions.

The necessity for such a solution is pronounced, especially given the rigorous demands of financial services automation, which requires not only precision but also specialized knowledge. As noted by CEO Gideon Ebose, thorough comprehension of regulatory intricacies—such as MasterCard’s guidelines and CFPB timelines—is crucial for crafting a reliable automation solution. Coupled with their usage-based pricing model that aligns the interests of Rulebase and its clients, the company is poised to establish itself as a leader in back-office automation within the financial services landscape.

Rationale Behind the Deal

The rationale for our investment in Rulebase is multi-faceted. Firstly, the financial services sector represents one of the largest and most crucial areas of the global economy, with significant opportunities for intelligent automation. Rulebase's initial focus is on business banks, neobanks, and card issuers, not only in Africa and Europe but also in the U.S., addressing widespread operational challenges that are prevalent across various financial institutions. Furthermore, their architectural capabilities lend themselves to expansion into adjacent fields such as insurance and other sectors requiring operational efficiency improvements.

Additionally, we view the company’s solid technical foundation and the founders’ domain knowledge as vital assets that will allow Rulebase to deepen its market penetration effectively. As they continue to refine their offerings, their tools can further contribute to streamlining processes such as fraud investigation and regulatory reporting, thereby further enhancing their value proposition in the financial services industry.

Investor Information

As investors, we are thrilled to partner with Gideon Ebose and Chidi Williams, who embody the perfect blend of technical prowess and visionary thinking. Their commitment to developing AI infrastructures that will shape the next generation of financial services operations truly resonates with our investment philosophy. We have full confidence in their capabilities to execute on their vision, having witnessed their exceptional skill sets and innovative ideas firsthand.

Our investment ethos prioritizes supporting founders who are driven and equipped with the expertise necessary to tackle significant challenges within their industries. Gideon and Chidi's respective backgrounds not only enrich Rulebase but also empower them to navigate the complex landscape of financial services, making them ideal partners for our investment strategy.

View of Dealert

When analyzing Rulebase's potential as an investment, we feel positive about the strategic move made in funding this innovative platform. The landscape of financial services is continually evolving, and there is a pressing need for tools that enhance operational efficiency while complying with regulatory standards. Rulebase stands at the forefront of this trend, offering a robust solution capable of transforming traditional back-office operations.

The target market for Rulebase is vast, as financial institutions of all sizes grapple with similar operational challenges that drive demand for automation solutions. This broad applicability of Rulebase's offerings puts the company in a strong competitive position as it expands its reach and diversifies its product capabilities. Furthermore, the strong traction they have already achieved reinforces our belief in the viability of their business model.

Moreover, the advanced technology and unparalleled insights provided by Rulebase grant them a significant competitive advantage. Their ability to automate processes while maintaining necessary oversight is likely to address the critical pain points experienced by financial institutions, positioning Rulebase for sustained growth and success. We anticipate that as they scale and enhance their capabilities, they will become essential partners for firms seeking to boost operational efficiency.

In conclusion, we view our investment in Rulebase as not only a strong financial opportunity but also as a chance to support a venture that can fundamentally alter how financial institutions manage their operational tasks. Rulebase is on the cusp of realizing its potential to become the industry standard in back-office automation, making it a promising investment aligned with our strategic objectives.

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