Sembly AI

Sembly AI

Open  for investment

About this raise

Sembly AI, with a valuation of $23.01 million, is raising funds on StartEngine. It is a B2B SaaS platform that uses agentic AI to create operational efficiencies. Sembly AI attends meetings along with the team and saves 80% of the time on research, analysis, document creation, note taking, and data entry into CRMs and Task Management Systems. The platform currently supports over 10,000 users and processes more than 60,000 company meetings monthly. Gil Makleff founded Sembly AI in January 2018. The current crowdfunding campaign has a minimum target of $123,996.60 and a maximum target of $820,834.56. The campaign proceeds will be used for sales, marketing, and research and development.

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Investment Overview

Committed this round: $220,578

Deal Terms

Total Commitments ($USD)

Platform
StartEngine
Start Date
01/14/2025
Close Date
04/14/2025
Min. Goal
$123,997
Max Goal
$820,835
Min. Investment

$240

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$10.92

Pre-Money Valuation

$23,014,675

Company & Team

Company

Year Founded
2018
Industry
Business Services, Software, & Applications
Tech Sector
EnterpriseTech
Distribution Model
B2B
Margin
High
Capital Intensity
Low
Location
New York, New York
Business Type
High Growth
Company Website
Visit Website

Team

Employees
4
Prior Founder Exits?
Yes
Founder Name
Gil Makleff
Title
CEO
Founder Name
Artem Koren
Title
CPO

Financials

as of December 1, 2024
 Revenue
$514,714
 Monthly Burn
$80,000
 Runway
2.8 months
Gross Margin
61%

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$514,714

$22,407

COGS

$200,533

$0

Tax

$0

$0

 

 

Net Income

$-1,312,888

$-2,338,069

Summary Balance Sheet

FY 2023 FY 2022

Cash

$367,243

$664,520

Accounts Receivable

$0

$0

Total Assets

$2,172,038

$1,288,786

Short-Term Debt

$2,502,009

$109,643

Long-Term Debt

$1,300,000

$2,131,939

Total Liabilities

$3,802,009

$2,241,582

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Synopsis

Sembly AI, founded in 2019 and headquartered in New York, is a SaaS platform specializing in AI-driven meeting solutions. The company leverages advanced natural language processing to record, transcribe, and analyze meetings across platforms like Zoom, Microsoft Teams, and Google Meet, transforming discussions into actionable insights. Key differentiators include its ability to generate AI-powered summaries, track action items, and provide sentiment analysis and engagement metrics, making it a valuable tool for productivity-focused enterprises. Sembly AI has raised over $8M across seven funding rounds. Its strategic partnerships, such as with MIGSO-PCUBED, further enhance its market position by combining project management expertise with Sembly's voice analytics technology. Despite competition from other meeting-focused AI tools, Sembly's robust integration capabilities and focus on actionable business outcomes set it apart as a promising player in the enterprise AI space

Next Section: Price

Price

Sembly AI is raising capital through a Common Equity offering. The company is valued at approximately $23 million with shares priced at $10.92 each. Investing through common equity provides shareholders with voting rights but lacks the preferential treatment regarding dividends and liquidation that preferred equity offers.

For investors aiming for a 10X return, Sembly AI would need to achieve an exit valuation of around $230 million. This calculation does not consider potential dilution from future fundraising rounds. To reach such a valuation, Sembly AI would likely need to significantly expand its user base and market penetration, potentially increasing its revenue and operational scale.

The company's revenue multiple currently stands at 44.7x, which is notably high. Such a multiple suggests that the investment may be overvalued, particularly when compared to typical industry standards. High revenue multiples can indicate that the deal terms may not be favorable for investors, as they imply a higher risk of achieving the desired growth to justify the valuation.

Next Section: Market

Market

The global AI meeting assistants market, valued at approximately $3.1 billion, is experiencing rapid growth with an annual growth rate of 25.6%. This expansion is primarily driven by the increasing demand for efficiency in business operations and the widespread adoption of AI technologies in corporate settings.

Key market drivers include the need for productivity tools that streamline meeting management and the integration of AI into everyday business processes. As companies strive to improve operational efficiencies in an increasingly digital workspace, solutions like those offered by Sembly AI are gaining traction. This trend can positively impact Sembly AI by expanding its potential customer base, as organizations look to adopt technologies that reduce time spent on administrative tasks.

Sembly AI's product primarily targets businesses looking to optimize their meeting processes, appealing to a niche within the broader AI market. The platform's focus on automating tasks and enhancing meeting management positions it to cater specifically to enterprises prioritizing efficiency enhancements. While this focus allows for strong positioning within its niche, it may limit the company's reach within the broader AI market if it does not expand its capabilities beyond current offerings.

Next Section: Team

Team

Sembly AI's leadership team is led by co-founders Gil Makleff (CEO), and Artem Koren (CPO), who established the company in 2019. Makleff previously had a long career in management consulting, with over three decades of experience helping grow companies through his consulting firm, UMT. He eventually sold his consulting group to EY. Koren brings over 16 years of product management experience, with AI learning applied since 2009, and has a diverse background as a systems engineer, product manager, IT executive, management consultant, and entrepreneur. Their combined experience in project, program, portfolio, and transformation management has been instrumental in shaping Sembly AI's mission to enhance workplace productivity through AI-driven solutions.

Next Section: Differentiation

Differentiation

Sembly AI competes in a moderately competitive landscape with several notable players in the AI meeting assistant space. Competitors such as Otter.ai and Microsoft Teams offer similar solutions that enhance meeting productivity through AI-driven features. Otter.ai is a well-established company known for its high-quality transcription services, catering to a diverse range of users from individual professionals to large enterprises. Microsoft Teams, part of the Microsoft 365 suite, integrates AI functionalities into its robust collaboration platform, providing comprehensive solutions for businesses of all sizes.

In terms of company size, Sembly AI is smaller compared to these competitors, which may impact its market reach and resource availability. However, its focus on automating a broader range of meeting-related tasks, beyond just transcription, allows it to offer a unique value proposition. Pricing strategies may vary, with Sembly AI potentially offering competitive pricing to attract businesses seeking cost-effective solutions for meeting management.

Sembly AI targets business customers, primarily mid-sized to large enterprises, that are looking to enhance operational efficiency through AI technology. These customers typically operate in sectors where meeting productivity is critical, such as corporate offices, consulting firms, and technology companies. The platform's ability to streamline administrative tasks appeals to organizations aiming to optimize their workforce's time and improve overall productivity.

Next Section: Performance

Performance

Sembly AI has demonstrated significant revenue growth over the past year. The company reported an annual revenue of $514k, up from $22k in the previous year. This growth reflects the company's expanding user base and increasing market traction.

Financially, Sembly AI's most recent monthly burn rate is approximately $80k, with cash on hand totaling $226k. This financial position suggests a limited runway, emphasizing the importance of securing additional funding or accelerating revenue growth to sustain operations and continue scaling efforts.

The company's total assets at the end of the most recent fiscal year were valued at $2.2 million, while total liabilities include short-term debt of $2.5 million and long-term debt of $1.3 million. The net income for the year was a loss of $1.3 million, compared to a loss of $2.3 million in the previous year. This reduction in net loss indicates some improvement in managing expenses relative to revenue generation.

Next Section: Risk

Risk

Sembly AI faces several specific risks that potential investors should consider. One notable concern is the company's financial runway, which appears limited with a cash reserve of $226k and a monthly burn rate of $80k. This financial position could pose liquidity challenges if additional funding is not secured or if revenue growth does not accelerate, potentially impacting operational sustainability.

The company's revenue multiple is another area of concern. With a multiple of 44.7x, the current valuation may be considered high. Such a multiple implies that the investment might be overvalued, especially when compared to industry norms. High revenue multiples generally suggest that investors are betting on significant future growth, which could be challenging to achieve.

Next Section: Bullish Outlook

Bullish Outlook

Sembly AI has shown great traction, processing over 60,000 company meetings every month across 100+ countries. The company is at a strong $1.7M ARR with over 1M meetings processed across 1,000 B2B customers. In terms of booked revenue, the company has grown revenue from $22k to $514k in 2023. This growth trajectory suggests early product-market fit and strong future potential. Additionally, the global AI meeting assistants market, with a sizable valuation of $3.1 billion and a robust growth rate of 25.6%, is growing incredibly quickly, and there will be plenty of opportunity for many players to capture market share.

Next Section: Bearish Outlook

Bearish Outlook

Sembly AI faces competition in the AI-driven meeting solutions market from several notable players including Otter.ai, MeetGeek, Notiv, and Chorus.ai, each offering various features for meeting transcription and analysis. Otter.ai stands out as a leading speech-to-text solution, while MeetGeek specializes in automating meeting workflows. Fireflies.ai provides comprehensive meeting assistance with powerful search capabilities, and Avoma offers a full meeting lifecycle assistant. Gong and Chorus.ai focus more on conversation intelligence for sales teams. While Sembly AI differentiates itself with its end-to-end meeting automation, including AI-powered scheduling and integration with various productivity tools, it faces challenges in a crowded market where competitors often specialize in specific aspects of meeting management or cater to particular industries.

Next Section: Executive Summary

Executive Summary

Sembly AI operates in the business services sector, offering a B2B SaaS platform that enhances meeting productivity through AI technology. The company primarily caters to mid-sized to large enterprises seeking to optimize their operational efficiencies. Its platform automates various meeting-related tasks, appealing to organizations that prioritize time management and productivity.

From a valuation perspective, Sembly AI is raising funds through a Common Equity offering with a valuation of $23 million and a share price of $10.92. The company has demonstrated impressive revenue growth, increasing from $22k to $514k, indicating strong market traction. However, financial health is a concern, with a monthly burn rate of $80k and cash reserves of $226k, suggesting a limited runway.

The global AI meeting assistants market, valued at $3.1 billion and growing at 25.6% annually, offers substantial opportunities for Sembly AI. The company differentiates itself by focusing on comprehensive meeting management solutions, setting it apart from competitors like Otter.ai and Microsoft Teams. Sembly AI's niche targeting of businesses focused on efficiency provides a competitive edge, although it may limit broader market reach.

From a bullish perspective, Sembly AI's alignment with market trends and its niche focus present growth opportunities. The company's rapid revenue growth and expanding user base highlight its potential to capture a larger market share. Conversely, the bearish outlook points to financial constraints and competitive pressures as potential inhibitors to scaling. The limited cash reserves and high valuation multiple could challenge future funding efforts.

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Company Funding & Growth

Funding history

Total Prior Capital Raised
$8,000,000
VC Backed?
No
Close Date Platform Valuation Total Raised Security Type Status Reg Type
04/14/2025 StartEngine $23,014,675 $220,578 Equity - Common Active RegCF
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Sembly AI on StartEngine 2025
Platform: StartEngine
Security Type: Equity - Common
Valuation: $23,014,675
Price per Share: $10.92

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