Standard Cognition, the San Francisco-based AI company that automates the checkout processes at the brick-and-mortar stores has picked up a fresh round of investment worth $35 million as part of the Series B financing. EQT Ventures led the latest funding with participation from Initialized Capital, CRV and Y Combinator.
The current capital infusion takes the total amount raised by the firm to $86.1 million. The last funding for the firm came in November last year when Initialized Capital led the $40 million round. Draper Associates and SchindlerAM Ventures are the other two notable backers of the company.
Standard Cognition was founded by Brandon Ogle, Daniel Fischetti, David Valdman, John Novak, Jordan Fisher, Michael Suswal, and TJ Lutz. The AI platform of the company helps buyers pick the products from the stores and checkout without needing to go to the cash counters. The firm claims to have installed their system in five stores in the U.S and Japan. The fresh funds will help the company take its platform globally.
Fisher, the co-founder, and CEO of the firm talking about the funding from EQT Ventures said, We really hit it off with the EQT Ventures team, and we’re incredibly excited to have them on board as we enter our next stage of growth. Standard’s initial customer implementations are moving along quickly, and in the coming months, we’ll be able to reveal more detail about our work with our global retailers. Feedback from retailers is that Standard’s light footprint, low hardware costs, and fast installation are the main reasons why they are selecting us.
Alastair Mitchell, a partner at EQT Ventures commenting on the funding through a statement said that “Traditional brick and mortar retailers are caught in a perfect storm. From the encroachment of behemoths like Amazon into every inch of the market to changing consumer attitudes, as busy people demand an ever more efficient shopping experience, margins are being squeezed like never before. The talented and driven Standard Cognition team have worked quickly to build a product that allows physical retailers, of all sizes, to tackle these challenges.”
Standard Cognition competes with e-commerce giant Amazon’s Amazon Go which has been doing exceptionally well ever since it’s cashier less convenience stores launch.
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