AI Startup Equals 3 Has Doubled Revenues Year Over Year


Equals 3 is a Minnesota tech startup cofounded by repeat entrepreneurs Scott Litman and Dan Mallin that launched in 2016

Their flagship product is called Lucy — an AI powered knowledge management platform built for the Fortune 1000 and the agencies that serve them.

While the venture has been heads down making that sausage, Litman came up for some air to share the latest on Equals 3:

What problem does Lucy solve?

From Dropbox and AWS to PowerPoint, Word Docs, RTF, Keynote/Pages, and now even video or audio content – we’ve found the evergreen problem what larger businesses have is with their unstructured data.

They have all these different teams with terabytes of their unstructured data spread out, but no matter how much they centralize it, they really have a difficult time finding their needle in the haystack.

So Lucy has really become a ‘killer app’ at solving for that specific problem and that’s where we’ve put all our energies – into Lucy’s AI knowledge management system for companies with 50, 100, 200 or more who need better, faster answers across the enterprise.

For Lucy, it’s all about efficiency. How do we take hours of work and turn that into minutes?

What department or areas within the company does Lucy appeal most to?

Consumer insights, market research, and technical documentation are the most common knowledge workers who use Lucy.

Who and how many customers does Equals 3 have?

We are managing over 30 active enterprise customers right now including IBM, the Horizon Agency, and Universal McCann.

How many people overall does Equals3 employ now full time?

30 overall, 25 of which are here in Minnesota.

How was top-line revenue growth like from calendar year 2017 to 2018?

Revenue growth from 2017 to 2018 was roughly $950K to $1.8M, so we essentially doubled revenue on $3m in sales last year (remainder to be realized yet this year).

How much overall outside investment has Equals3 raised to date?

$8M between our Seed Round and Series A.

Do you anticipate another round this year?

Yes. There’s a huge market opportunity in front of us, but we need fuel. Our competitors have dramatically more capital raised.