In the quest to utilize AI for a company's knowledge library, vital information can often be overlooked. While uploading images, videos, documents, and spreadsheets to train models is straightforward, unstructured data types like invoices, emails, and PDFs pose a challenge. Manually converting these files into a searchable format is labor-intensive, often surpassing the capabilities of engineering teams lacking machine-learning expertise.
However, one company, Bem, founded by Antonio Bustamante and Upal Saha, aims to bridge this gap. Bem provides an API that allows developers to convert any type of input—structured or unstructured—into any desired data format. The startup has successfully raised $3.7 million in seed funding, led by Uncork Capital, with participation from Lookout's founder Kevin Mahaffey, Roar Ventures, and notable angel investors, including Y Combinator's Garry Tan.
"Engineering teams spend approximately 44% of their time building, monitoring, and maintaining data pipelines," Bustamante explains. "Bem is dedicated to redefining interoperability and integration, enabling teams to concentrate on what truly matters—their product. We aim to relieve engineers of the burdens of integrations and data ingestion pipelines, allowing them to focus on creating value for their users."
Structured Data as a Service
Targeting engineers, Bem prides itself on its user-friendly approach, requiring no extensive training or configuration. Developers can easily utilize the API to define their desired data structure before submitting their information. Bustamante likens it to how Stripe simplified payment processing through an accessible API.
Bem offers more than a one-off service; it establishes a continuous data pipeline that transmits information between the organization and Bem. "Customers send us thousands of data pieces every minute, creating a consistent stream," he explains.
The platform effectively serves as Structured Data as a Service (SDaaS). Bustamante notes, "Many inputs from companies are disorganized. Our users simply need a structured version that aligns with their internal data format and schema. We provide a transformation and structuring service."
Bem sees significant potential in its offering. Many companies are too busy to develop their own solutions for what Bustamante describes as a pressing "hair on fire" issue. The startup primarily assists software firms in industries such as logistics, supply chain, healthcare, and insurance, which face the most significant challenges with unstructured data.
Most available solutions are designed for document review workflows, whereas Bem provides a foundational building block for product integration aimed directly at end-user applications, differing from competitors more suited for back-office processes.
Innovative Data Management
Bem has developed its platform using a blend of foundational and open-source models, continuously improving intelligence through client interactions. Importantly, the platform ensures data isolation, with models trained exclusively on individual customer data.
Currently in private beta, Bem has ten early customers and targets firms in Series C funding stages and beyond. Bustamante highlights that the need for effective data management becomes pronounced at this growth level, particularly in logistics, supply chain, healthcare, and insurance sectors.
The recent $3.7 million funding will be directed toward enhancing Bem’s platform, particularly in engineering, research, and development.
"Companies often grapple with messy data ingestion," says Andy McLoughlin, managing partner at Uncork Capital. "Bem's solution, which automates and streamlines this process, is a vital service. This issue is pervasive across all industries but is especially acute in sectors like insurance and logistics."
McLoughlin emphasizes that Bem democratizes data and empowers companies to manage it effectively. Historically, only large tech firms have harnessed such data transformation capabilities. As companies increasingly seek more efficient tools, those that succeed in commercializing such solutions stand to gain substantial traction.
Competitively, Bem's CEO identifies Unstructured as a notable player, although he notes their differing target markets, as Unstructured focuses exclusively on document processing. However, Bem's principal competitors remain those companies attempting to build similar capabilities in-house. Bustamante points out that many customers quickly realize the high costs associated with internal development.
Pricing for Bem's services is currently determined on a case-by-case basis, based on the data managed. Over the coming months, the company aims to standardize its pricing structure to ensure transparency and deliver a strong return on investment, targeting an ROI of 25 to 30 times, given the substantial challenges posed by unstructured data.
Valuation details have not been disclosed.
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