Vector ML Analytics

Vector ML Analytics

Early Stage

Financial Modeling Platform for CFOs of Banks and Lending Institutions

Financial Modeling Platform for CFOs of Banks and Lending Institutions

Overview

Raised to Date: Raised: $500

Total Commitments ($USD)

Platform

Wefunder

Start Date

08/10/2023

Close Date

04/29/2024

Min. Goal
$50,000
Max. Goal
$1,235,000
Min. Investment

$100

Security Type

SAFE

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$7,500,000

Valuation Cap

$9,000,000

Discount

0%

Rolling Commitments ($USD)

Status
Not Funded
Reporting Date

04/30/2024

Days Remaining
Not Funded
% of Min. Goal
Not Funded
% of Max. Goal
Not Funded
Likelihood of Max
Not Funded
Avg. Daily Raise

$2

# of Investors

2

Momentum
Not Funded
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Year Founded

2021

Industry

Financial & Insurance Products & Services

Tech Sector

Fintech

Distribution Model

B2B

Margin

High

Capital Intensity

Low

Location

DOVER, Delaware

Business Type

Growth

Vector ML Analytics, with a valuation of $9 million, is raising funds on Wefunder. The company has developed a financial modeling platform for CFOs of banks and lenders. Vector ML Analytics uses AI to address the urgent need for financial resilience and brings stability and growth in the financial sector. The platform empowers banks and lenders by providing insights into potential risks and market dynamics. Sadeq Safarini, Jade Clarke, Phillip Morgia, Feras Khalil, and Alano Smit founded Vector ML Analytics in May 2021. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $1.24 million. The campaign proceeds will be used for engineering, customer acquisition, and other expenses.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$17,310

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-433,826

$0

Summary Balance Sheet

FY 2022 FY 2021

Cash

$71,008

$0

Accounts Receivable

$0

$0

Total Assets

$71,008

$0

Short-Term Debt

$0

$0

Long-Term Debt

$500,000

$0

Total Liabilities

$500,000

$0

Financials as of: 08/10/2023
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Founder Profile

Pioneering the Future of AI-Driven Financial Modeling in Banking

Artificial Intelligence is changing the way we conduct business. It increases productivity and sometimes can replace humans. But can it make relevant suggestions?


That’s what Vector ML Analytics is betting on. The company’s software improves banking financial modeling to improve performance and avoid bankruptcy.


We reached out to Sadeq Safarini, founder and CEO, to learn more about his journey leading the fintech startup.


Read Founder Interview

Analyst Report

Synopsis

Vector ML Analytics is a financial technology company that has developed an artificial intelligence (AI) powered platform tailored for Chief Financial Officers (CFOs) of banks and lending institutions. The platform is designed to provide unprecedented insights into market dynamics and potential risks, allowing financial institutions to proactively manage risks, seize opportunities, and effectively navigate market volatility.


The company's platform leverages state-of-the-art simulations and cutting-edge AI analytics to harness the power of data-driven decision-making. This approach is designed to address the urgent need for financial resilience and stability in the financial sector, particularly among banks and lenders.


Vector ML Analytics has already attracted the attention of venture capital firms, with investments from Right Side Capital Management and EV Private Investments. The company has also participated in accelerator programs such as Plug & Play and Revtech Labs, further validating its business model and potential for growth.


The current crowdfunding campaign of Vector ML Analytics on Wefunder aims to raise between $50,000 and $1.24 million. The funds raised will be used for engineering, customer acquisition, and other expenses, helping the company to further develop its platform and expand its customer base.


As the financial sector continues to evolve and adapt to changing market dynamics, tools such as Vector ML Analytics' platform will likely become increasingly important. This makes Vector ML Analytics an intriguing prospect for potential investors looking to tap into the growing fintech market.

Next Section: Price

Price

Vector ML Analytics is raising funds at a $9 million valuation. While the company offers an innovative financial modeling platform for CFOs of banks and lenders, the current valuation seems inflated. Vector ML Analytics generated only $17,310 in revenue in its most recent fiscal year, indicating a revenue multiple of over 500. This multiple is exceptionally high, especially considering the early stage of the company and its limited revenue growth. The valuation also exceeds the company's current traction and financial performance.

Investors should be cautious when considering the valuation of Vector ML Analytics. While the company operates in a promising industry and has notable partnerships, the high valuation suggests that the company may be overvalued. Investors should carefully assess the growth potential and market demand for Vector ML Analytics' financial modeling platform before making an investment decision.

Next Section: Market

Market

Vector ML Analytics operates within the global enterprise financial management software market, which is substantial and growing. The market size is projected at approximately $9.33 billion and is expected to grow at a rate of 13.8%. This market includes a range of software solutions, encompassing everything from risk management to budgeting and forecasting tools.


The company's target market is niche, specifically focusing on CFOs of banks and lenders. This focus could potentially limit the size of their addressable market, but it also allows them to tailor their offering to the specific needs of this group. By leveraging AI technology to provide insights into potential risks and market dynamics, Vector ML Analytics is addressing an urgent need for financial resilience within the banking sector.


While the market is established and has existing competitors, Vector ML Analytics's innovative use of AI technology may provide it with a competitive edge. The competition landscape is described as slightly competitive, indicating that there may be opportunities for Vector ML Analytics to capture market share.


Given the high acceptance of enterprise financial management software and the growing reliance on data-driven decision-making within the banking sector, there are significant opportunities for Vector ML Analytics. Their low capital intensity level could also allow for higher profitability and scalability as they grow.


In conclusion, Vector ML Analytics is operating in a substantial and growing market. Its niche focus, coupled with the innovative use of AI, positions it well to capitalize on the increasing demand for sophisticated financial management tools within the banking sector.

Next Section: Team

Team

The team at Vector ML Analytics is led by CEO Sadeq Safarini. Safarini has over 13 years of relevant industry experience and brings a strong background in managerial skills to the company. He has successfully raised funds for previous ventures and has a deep understanding of the financial and insurance products and services industry. Safarini's leadership and expertise will be crucial in driving the growth and success of Vector ML Analytics.

Joining Safarini is CTO Phillip Santi Morgia, who has 2.4 years of relevant industry experience. Morgia is responsible for overseeing the technological aspects of the company and ensuring the development of a robust and efficient financial modeling platform. While Morgia may be relatively new to the industry, his technical skills and dedication to the company's vision will contribute to its success.

Heading the operations department is Jade Clarke, who has 2.7 years of relevant industry experience. Clarke plays a crucial role in ensuring the smooth functioning of Vector ML Analytics' operations and processes. With her attention to detail and strong organizational skills, Clarke will help streamline the company's operations and drive efficiency.

Chief Revenue Officer Alano Smit brings 2.3 years of relevant industry experience to the team. Smit is responsible for driving revenue growth and developing strategic partnerships. His role will be instrumental in expanding Vector ML Analytics' customer base and maximizing revenue opportunities.

Completing the team is Chief Information Officer Feras Khalil, who has 3 years of relevant industry experience. Khalil is responsible for overseeing the company's information systems and technology infrastructure. With his expertise in information management and technology, Khalil will ensure that Vector ML Analytics has a secure and efficient IT infrastructure to support its operations.

The team at Vector ML Analytics is relatively small, with a total of 8 members. However, each member brings unique skills and expertise to the table, contributing to the company's growth and success. With a strong leadership team and a focus on leveraging AI-powered analytics, Vector ML Analytics is well-positioned to address the needs of the financial and insurance products and services industry.

Next Section: Differentiation

Differentiation

Vector ML Analytics aims to differentiate itself in the financial and insurance industry by offering a financial modeling platform specifically designed for CFOs of banks and lenders. The platform utilizes cutting-edge AI-powered analytics and simulations to provide unprecedented insights into market dynamics and potential risks. By leveraging data-driven decision-making, financial institutions can proactively manage risks, seize opportunities, and navigate market volatility effectively.

While the company claims to bring stability and growth to the financial sector, it is important to note that the differentiation level of Vector ML Analytics is relatively low. The company's product offering and solution are similar to established solutions in the market, and there are already 10-50 direct competitors operating in this space. However, the competitive landscape is only slightly competitive, indicating that there may still be opportunities for Vector ML Analytics to carve out a niche.

One potential area of concern is the lack of patents held by Vector ML Analytics. Intellectual property protection can be crucial in establishing a competitive advantage and creating barriers to entry for potential competitors. Without patents, the company may face challenges in protecting its technology and differentiating itself from competitors.

Despite these challenges, Vector ML Analytics has shown traction with paying customers and has secured partnerships. The company's focus on addressing the urgent need for financial resilience and its use of AI-powered analytics position it well within the global enterprise financial management software market. However, to truly differentiate itself and gain a competitive edge, Vector ML Analytics may need to further enhance its product offering, build a strong brand presence, and potentially pursue intellectual property protection.

Next Section: Performance

Performance

Vector ML Analytics is an early-stage company that has developed a financial modeling platform for CFOs of banks and lenders. The platform utilizes cutting-edge AI-powered analytics and simulations to provide insights into market dynamics and potential risks. By leveraging data-driven decision-making, financial institutions can proactively manage risks, seize opportunities, and navigate market volatility effectively.

While specific financial performance metrics are not available, Vector ML Analytics has demonstrated progress in securing paying customers. The company has successfully acquired clients in the financial industry who are utilizing its platform. This indicates a level of market validation and demand for Vector ML Analytics' solution.

Vector ML Analytics has also raised funds through previous rounds, with a total amount raised of $504,833. This demonstrates investor confidence in the company's potential and the value of its product offering.

However, it is important to note that Vector ML Analytics is still in the early stages of development and has not yet achieved profitability. The company's annual revenue is currently $17,310, with no significant growth reported since the last round. Additionally, the company has a monthly burn rate of $36,152.17, indicating ongoing expenses that exceed its current revenue.

Vector ML Analytics operates in a slightly competitive landscape, where other companies offer similar financial management software solutions. As the company continues to grow and develop its product, it will need to differentiate itself and effectively compete in the market.

Overall, while Vector ML Analytics has made progress in acquiring paying customers and raising funds, it is still in the early stages of development. The company will need to focus on product development, customer acquisition, and managing expenses to drive revenue growth and achieve long-term profitability.

Next Section: Risk

Risk

Investing in Vector ML Analytics carries some risks due to its early-stage nature and the competitive landscape of the financial modeling industry. As a relatively new company, Vector ML Analytics is still in the development phase and has not yet achieved profitability. This means that there is a level of uncertainty regarding its future financial performance. Additionally, the company's cash and cash equivalents as of the most recent fiscal year end are relatively low, which could potentially impact its ability to sustain operations and meet financial obligations.

Vector ML Analytics operates in a slightly competitive market, which means it faces competition from other players offering financial modeling solutions to CFOs of banks and lending institutions. This competition could impact the company's market share and ability to attract and retain customers.

Another risk factor to consider is the long sales cycle associated with the company's product. Lengthy sales cycles could result in delayed revenue generation and cash flow issues. Additionally, the company's monthly burn rate is relatively high compared to its current revenue, which raises concerns about its ability to fund ongoing operations.

While Vector ML Analytics has partnerships in place, the absence of patents may expose the company to potential intellectual property risks. Without patent protection, the company's proprietary technology could be replicated or exploited by competitors, potentially impacting its market position and competitive advantage.

Lastly, it's worth noting that Vector ML Analytics is currently considered overvalued. Investors should carefully evaluate the company's valuation and assess the potential for future returns given the current market conditions.

Next Section: Bullish Outlook

Bullish Outlook

Vector ML Analytics is positioned to revolutionize the financial industry with its innovative financial modeling platform. The company's AI-powered analytics and state-of-the-art simulations provide banks and lenders with unprecedented insights into market dynamics and potential risks. This empowers financial institutions to proactively manage risks, seize opportunities, and navigate market volatility effectively.

With a valuation of $9 million, Vector ML Analytics has attracted the attention and support of notable VC investors such as Right Side Capital Management and EV Private Investments. The company has also participated in prestigious accelerator programs, including Plug & Play and Revtech Labs. These partnerships and investments validate the company's potential and provide valuable resources and expertise to fuel its growth.

Vector ML Analytics operates in a highly competitive landscape, but its unique value proposition, high-margin business model, and high barriers to entry give it a competitive advantage. The company's financial modeling platform addresses a critical need for financial resilience in the global enterprise financial management software market, which presents a significant addressable market for Vector ML Analytics to tap into.

Despite being in the early stage of development, Vector ML Analytics has already gained traction with users and generated $17,310 in annual revenue. The company's recurring revenue model indicates the potential for steady and scalable growth in the future. Additionally, the company's low capital intensity level suggests that it can achieve profitability and sustainable growth with relatively low capital requirements.

Looking ahead, Vector ML Analytics is well-positioned to continue its growth trajectory and disrupt the financial industry. The crowdfunding campaign on Wefunder will provide the company with the necessary funds to invest in engineering, customer acquisition, and other expenses that will drive its expansion. With its innovative platform and strong market potential, Vector ML Analytics has the opportunity to become a leader in the financial services industry.

Next Section: Bearish Outlook

Bearish Outlook

While Vector ML Analytics presents itself as a player in the financial modeling space, the company's financials do not inspire confidence. With annual revenue of just $17,310 and a valuation of $9 million, the company's revenue multiple is an astronomical 520x. This valuation seems highly inflated given the company's current revenue and growth prospects. Investors should be cautious about the company's ability to generate substantial revenue in the near future.

Furthermore, Vector ML Analytics recorded a net loss of $433,826 in its most recent fiscal year. This suggests that the company's business model is not yet profitable, casting doubts on its ability to sustain operations and achieve profitability in the long run. The company's monthly burn rate of $36,152.17 further contributes to the concern over its financial sustainability.

Additionally, Vector ML Analytics faces a competitive landscape in the financial modeling space. While the competitive landscape is described as only slightly competitive, it is important to note that there are already established companies offering financial modeling platforms to CFOs of banks and lenders. Vector ML Analytics will need to differentiate itself significantly to capture market share and compete effectively against these existing players.

Overall, considering the company's overvaluation, lack of profitability, and competitive challenges, investors should approach Vector ML Analytics with caution and thoroughly assess the company's growth potential and ability to generate sustainable revenue.

Next Section: Executive Summary

Executive Summary

Vector ML Analytics is a financial modeling platform designed for Chief Financial Officers (CFOs) of banks and lending institutions. The platform leverages artificial intelligence (AI) to provide insights into market dynamics and potential risks, helping financial institutions manage risks, seize opportunities, and navigate market volatility effectively.


Despite being a relatively new company, founded in May 2021, Vector ML Analytics has already secured partnerships and is backed by venture capital firms such as Right Side Capital Management and EV Private Investments. The company has also participated in accelerator programs such as Plug & Play and Revtech Labs.


However, Vector ML Analytics is still in its early stages, with revenues of just $17,310 for the most recent fiscal year. The company is also pre-profit, with a net income loss of $433,826 for the same period. This, coupled with a high valuation cap of $9 million, suggests that the company may be overvalued at this stage.


Despite these challenges, Vector ML Analytics operates in a high potential market - the global enterprise financial management software sector. The company's AI-driven approach to financial modeling could position it well to capitalize on the growing trend towards data-driven decision making in the financial sector.


The current crowdfunding campaign, hosted on Wefunder, aims to raise between $50,000 and $1.24 million. The funds raised will be used for engineering, customer acquisition, and other expenses.

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Vector ML Analytics on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $9,000,000

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