Ripcord: Automating Paper Records with Robotics and AI

In today’s digital age, where businesses are moving towards digitization and automation, Ripcord is making waves with its innovative approach to handling paper records. The startup, which develops robots capable of automatically digitizing paper records, is set to raise between $20 million and $25 million in its latest funding round. This funding would value the company at $110 million before entry, according to a source familiar with the matter.

The funding round is expected to include participation from Alphabet’s GV, Lux Capital, and MUFG. Both GV and Lux Capital have previously invested in Ripcord, while MUFG, a Japanese banking chain, appears to be a new sponsor. This investment comes as a vote of confidence in Ripcord’s technology and its potential to disrupt the paper records industry.

Ripcord’s Journey So Far

With this new funding round, Ripcord’s total raised capital would reach approximately $150 million. Previous investors in the company include well-known names such as Kleiner Perkins, Silicon Valley Bank, Tyche Partners, Icon Ventures, and Baidu. Notably, Steve Wozniak, co-founder of Apple, also participated in Ripcord’s series A funding round.

While this funding round is significant, it is worth noting that it is smaller than Ripcord’s previous series B round, which closed at $45 million. The reasons for the decrease in funding and the relatively long three-year interval between external infusions are unclear. However, it is speculated that the previous accusations of inappropriate behavior by Ripcord’s former CEO, Alex Fielding, might have played a role in these developments. Fielding has since left Ripcord to found a space startup called Privateer.

Ripcord’s Partnerships and Agreements

Ripcord has secured several key partnerships and agreements that demonstrate the company’s growing influence in the industry. According to the filings shared with TechCrunch, Ripcord has a “fundamental agreement” with the IRS for the processing of tax documents worth over $4 million. The company has also expanded its agreement with the US Air Force and counts MUFG as both a client and an investor, with an annual contract value of $5 million. Additionally, Ripcord is in the final stages of a significant deal with Wells Fargo, further solidifying its position in the market.

The Controversy Surrounding Ripcord

Ripcord has not been without its fair share of controversies. In 2018, a former Ripcord employee made allegations of inappropriate behavior by the then-CEO, Alex Fielding, and several other unnamed employees. The allegations included graphic and sexually tinged stories, crude comments, and retaliation against reporting inappropriate sexual behavior. In response to these allegations, Ripcord’s board of directors promised to investigate and “take appropriate action.” Interestingly, three years later, Fielding himself became a board director before leaving the company.

Ripcord’s Business Model and Technological Advancements

Ripcord’s primary revenue stream comes from charging for document scans, with prices ranging from $0.08 to $0.25 per image. The company’s physical robots utilize computer vision, lifting and positioning arms, and RGB cameras to handle various document formats while classifying and extracting data. On the software side, Ripcord’s platform integrates with third-party business intelligence and data processing software, enabling the conversion of scanned documents into searchable PDF files stored in the cloud.

Ripcord’s Future Plans

Ripcord is not resting on its laurels and is continuously working towards expansion and innovation. In partnership with OpenAI, the company is developing a generative AI tool called Docufai, scheduled for launch in September. Docufai is designed for document discovery, allowing customers to ask questions about scanned documents and receive answers. Ripcord’s product roadmap for Docufai includes plans for document translation, finding related documents, and sharing features like a collaborative notebook. The company aims to add 1,000 users to Docufai by the end of Q3 2023 and launch paid tiers targeting teams and enterprises in 2024.

Ripcord’s Growth and Revenue Projections

Despite facing challenges and controversies, Ripcord has achieved significant growth in terms of revenue. In 2022, the company’s revenue reached $11.8 million, doubling from $5.9 million in 2021. According to the filing platform, Ripcord expects to generate $22.5 million in revenue by the end of 2023 and reach $49.2 million in revenue by the fourth quarter of 2024. These projections demonstrate the market demand for Ripcord’s services and indicate its increasing success in the industry.

Conclusion

Ripcord’s journey from a startup to a major player in the field of digitizing paper records is impressive. With its innovative robotics technology and partnerships with industry giants, the company has positioned itself as a leader in the market. While facing controversies along the way, Ripcord has remained resilient and focused on its mission to automate and digitize paper records. As the world continues to move towards digital transformation, Ripcord’s services are likely to become even more essential, driving its growth and success in the years to come.

Ripcord, a startup that develops robots that can automatically digitize paper records, hopes to raise between $20 million and $25 million in a new funding round that would value the company at $110 million before entry, according to a source familiar with the matter. subject and a presentation platform seen by TechCrunch.

Alphabet’s GV, Lux Capital and MUFG are in talks to participate in the round. GV and Lux ​​previously invested in Ripcord; MUFG, a Japanese banking chain, appears to be a new sponsor.

We reached out to Ripcord’s chief marketing officer, Molly Vernarecci, via LinkedIn for comment. She did not respond at the time of publication.

The round, if successful, would bring the total raised by Ripcord to around $150 million, the bulk of which came from previous investors Kleiner Perkins, Silicon Valley Bank, Tyche Partners, Icon Ventures and Baidu. Notably, Steve Wozniak, co-founder of Apple, participated in Ripcord’s series A.

The new round would also be significantly smaller than Ripcord’s latest tranche, a Series B, which closed at $45 million. The reason was not immediately clear, nor was the reason for the relatively long interval, three years, between Ripcord’s external infusions.

Ripcord has was found in the center of controversy before, which might have something to do with it.

In 2018, a former Ripcord employee, Peter Coneybeer, alleged inappropriate behavior by then-CEO Alex Fielding and several other unnamed employees. In a Medium post, Coneybeer claimed that Fielding told graphic, sexually tinged stories and made crude comments about pumping his breast milk, and that he was retaliated against for reporting an employee’s inappropriate sexual behavior to Human Resources.

In response to the allegations, Ripcord said its board of directors would investigate and “take appropriate action.” Three years later, Fielding became a board director, a position he held for two and a half years before leaving Ripcord to found a space startup. Privateer.

In the filing shared with TechCrunch, Ripcord claims to have secured a “fundamental agreement” with the IRS for the processing of tax documents worth more than $4 million and an expanded agreement with the US Air Force. MUFG is a client as well as an investor, the pitch deck reveals, with an annual contract value of $5 million. And Ripcord says it’s in the final stages of a big deal with Wells Fargo.

In 2020, Ripcord claimed to be processing more than one billion pages per year for clients such as Coca-Cola, BP, Chevron, UCLA, Cantium, and several Fortune 100 companies, including three of the top five financial services companies and three of the largest . five insurance companies. Coca-Cola remains a customer, according to the presentation platform. But the status of several of the others is unclear.

However, Ripcord’s revenue was $11.8 million in 2022, up from $5.9 million in 2021, according to the filing platform. The company, which is currently unprofitable, expects to end 2023 with $22.5 million in revenue and reach $49.2 million in revenue by the fourth quarter of 2024.

Ripcord was founded by three entrepreneurs, Fielding (former Apple engineer), Kim Lembo (NASA veteran), and Kevin Hall. The company develops physical robots that scan documents autonomously, even removing staples. Through partnerships with logistics companies, Ripcord transports files containing barcode labels with metadata to its facilities, where it scans and stores them to meet compliance requirements or shreds and recycles them.

Ripcord makes most of its money by charging for document scans, between $0.08 and $0.25 per image.

Employing computer vision, lifting and positioning arms and RGB cameras, Ripcord’s robots can handle a variety of document formats while classifying and extracting data. On the software side, the company’s platform, which integrates with a range of third-party business intelligence and data processing software, uploads documents to the cloud and converts them into searchable PDF files.

To fuel its next phase of growth, Ripcord, fresh off an integration partnership with OpenAI, is developing a generative AI tool that the startup intended to launch in September, according to the pitch deck. Called Docufai, the freemium tool is designed for document discovery, providing a way for customers to ask questions about scanned documents and get answers.

The presentation deck shows Ripcord’s proposed product roadmap for Docufai, which includes a future document translation feature, an ability to find related documents, and sharing features, including a collaborative notebook. Ripcord aims to add 1,000 users to Docufai by the end of Q3 2023 and launch a paid tier, followed by teams and enterprise tiers, sometime in 2024.