Investment Memo: Multimodal

Executive Summary: Multimodal is a promising startup in the emerging field of generative process automation, targeting the banking and insurance industries. The company aims to revolutionize middle and back-office workflows by leveraging generative AI to automate high-volume, repetitive tasks traditionally performed by skilled professionals.

Key Points:

1. Market Opportunity:
   • Large, untapped market in banking and insurance for workflow automation
   • Potential for 200-400% productivity boost in targeted roles
   • Addresses pain points in loan origination, underwriting, claims processing, and account opening
2. Technology:
   • Five AI agent product lines: Document AI, Decision AI, Database AI, Conversational AI, and Content AI
   • Built on large language models with a deep application layer
   • Configurable platform with 80% pre-built capabilities
3. Go-to-Market Strategy:
   • Initial focus on mid-market banking (regional banks, credit unions, FinTechs)
   • Expansion into insurance (claims processing) and enterprise-level financial institutions
   • Forward deployment engineers configure solutions for customers (similar to Palantir model)
4. Competitive Advantage:
   • More flexible and intelligent than traditional RPA solutions
   • Deep vertical focus on highly regulated industries
   • API-first approach allows integration with existing systems
5. Growth Strategy:
   • Land and expand model within organizations
   • Partnerships with consulting firms for distribution and implementation
   • Future plans for self-serve capabilities and integration with incumbent platforms
6. Revenue Model:
   • Usage-based pricing
   • High potential for increasing Annual Contract Value (ACV) over time
   • Capturing a percentage of significant labor cost savings

Risks and Considerations:

• Long sales cycles, particularly in enterprise segment
• Highly regulated industry may pose implementation challenges
• Potential competition from incumbent software providers and other AI startups

Investment Potential: Multimodal presents an attractive investment opportunity in the rapidly growing field of AI-powered process automation. The company's deep vertical focus, scalable technology, and potential for high customer lifetime value make it a compelling prospect. However, investors should be prepared for potentially long sales cycles and the need for significant resources to scale in a competitive market.

Next Steps:

• Evaluate the team's expertise and track record
• Assess current customer traction and pilot results
• Review financial projections and funding requirements
• Conduct technical due diligence on the AI platform's capabilities and differentiation