Most startup founders have a tough road to their first round of funding, but the founders of Digital Brain had it a bit tougher than most. The two young founders survived by entering and winning hackathons to pay their rent and put food on the table. One of the ideas they came up with at those hackathons was DigitalBrain, a layer that sits on top of customer service software like Zendesk to streamline tasks and ease the job of customer service agents.
They ended up in Y Combinator in the Summer 2020 class, and today the company announced a $3.4 million seed investment. This total includes $3 million raised this round, which closed in August, and previously unannounced investments of $250,000 in March from Unshackled Ventures and $150,000 from Y Combinator in May.
The round was led by Moxxie Ventures, with help from Caffeinated Capital, Unshackled Ventures, Shrug Capital, Weekend Fund, Underscore VC and Scribble Ventures, along with a slew of individual investors.
Company co-founder Kesava Kirupa Dinakaran says that after he and his partner Dmitry Dolgopolov met at a hackathon in May 2019, they moved into a community house in San Francisco full of startup founders. They kept hearing from their housemates about the issues their companies faced with customer service as they began scaling. Like any good entrepreneur, they decided to build something to solve that problem.
"DigitalBrain is an external layer that sits on top of existing help desk software to actually help the support agents get through their tickets twice as fast, and we're doing that by automating a lot of internal workflows, and giving them all the context and information they need to respond to each ticket, making the experience of responding to these tickets significantly faster," Dinakaran told TechCrunch.
What this means in practice is that customer service reps work in DigitalBrain to process their tickets, and as they come upon a problem such as canceling an order or reporting a bug, instead of traversing several systems to fix it, they choose the appropriate action in DigitalBrain, enter the required information and the problem is resolved for them automatically. In the case of a bug, it would file a Jira ticket with engineering. In the case of canceling an order, it would take all of the actions and update all of the records required by this request.
As Dinakaran points out, they aren't typical Silicon Valley startup founders. They are 20-year-old immigrants from India and Russia, respectively, who came to the U.S. with coding skills and a dream of building a company. "We are both outsiders to Silicon Valley. We didn’t go to college. We don’t come from families of means. We wanted to come here and build our initial network from the ground up," he said.
Eventually they met some folks through their housemates, who suggested that they apply to Y Combinator. "As we started to meet people that we met through our community house here, some of them were YC founders and they kept saying I think you guys will love the YC community, not just in terms of your ethos, but also just purely from a perspective of meeting new people and where you are," he said.
He said while he and his co-founder have trouble wrapping their arms around a number like the amount they have in the bank now, considering it wasn't that long ago that they were struggling to meet expenses every month, they recognize this money buys them an opportunity to help start building a more substantial company.
"What we're trying to do is really accelerate the development and building of what we're doing. And we think if we push the gas pedal with the resources we've gotten, we'll be able to accelerate bringing on the next couple of customers, and start onboarding some of the larger companies we're interested in," he said.