Jetson AI
Pitchdeck
Company Highlights
· Signed partnerships with Shopify, Postmates, Amazon Pay, Chowly, Delivery.com, Vonage, and Square
· Previously raised ~$2.55 million from angel investors
· Voice-first marketplace has over 9,800 merchants – up from 138 in October 2019 – and more than 1.1 million products
· Joint venture with Think Acquisition, a government technology acquisition firm founded by former director of an organization within the U.S. Department of Homeland Security
EXECUTIVE SNAPSHOT
Jetson AI is a voice-first SaaS (Software as a Service) platform that aims to upgrade the smart speaker and voice assistant experience with greater intelligence. The company’s product provides artificial intelligence (AI) technology for businesses to join Jetson’s voice-first marketplace or integrate into their own systems to process voice ordering through smart speakers such as Amazon Alexa and Google Home. By allowing consumers to speak naturally, Jetson sees an opportunity for its voice technology to create a frictionless customer experience in the areas of e-commerce shopping, restaurant food ordering, and hospitality engagement. Today, Jetson’s marketplace has more than 9,800 merchants and over 1.1 million products available for end users.
Additionally, the company has partnered with large enterprises in hopes of boosting the effectiveness of the company’s platform. Partners include:
· Shopify
· Amazon Pay
· Postmates
· Chowly
· Delivery.com
· Vonage
· Square
Opportunity
Consumers spent over $600 billion online through U.S. merchants in 2019, growing 14.9% year-over-year. However, the COVID-19 pandemic has only accelerated the growth of e-commerce. In May 2020, consumers spent $82.5 billion online, up 77% year-over-year. One form of ordering products online is through voice technology. Voice commerce has grown quickly, with Juniper Research projecting that the voice commerce market will reach over $80 billion per year by 2023. Sales conducted through smart speakers utilize voice technology, whereby consumers can have intelligent conversations with AI devices to order products and services. The number of smart speakers in U.S. households reached 157 million in December 2019, a rapid 135% growth in two years.
Founded in 2017, Jetson AI is a voice-first SaaS platform designed to enable businesses to sell their products and services through intelligent voice technology such as Amazon Alexa and Google Home. Jetson’s technology makes it possible for consumers and voice assistants to have multi-step conversations in which voice assistants can accurately respond to various customer requests as well as securely process transactions. It utilizes machine learning algorithms that continually learn based on customer interactions. Businesses can either create a voice-first marketplace in minutes with a self-service dashboard or integrate the technology into their existing systems with Jetson’s application program interface (API) to build custom voice technology solutions. Looking ahead, Jetson has ambitions of creating an even more robust platform, one that builds payment facilitation tools to aid in conversation commerce, as well as providing its voice technology to on-premise retailers, like restaurants and shops.
Product
The company’s goal is to facilitate voice-orders between consumers and businesses and act as a voice-search engine for general consumer browsing.
The process of ordering a product through a Jetson integrated system is as follows:
1. Customer creates a Jetson account, inputting information such as payment and delivery address.
2. Customer tells their smart speaker they would like to place an order.
3. As the customer is ordering, the Jetson system is able to answer product questions and make recommendations using its AI and based on product information saved in the Jetson dashboard.
4. Once the order is finished, Jetson asks the customer to confirm their order.
5. Customers can then authorize payment through Jetson Pay, where their payment information is kept on file. Some customers may choose to add a dual authentication method to authorize each transaction.
6. Orders are then sent to a business’s dashboard where they can accept the order.
7. Once an order is accepted, it is moved to “in progress” on the dashboard.
8. Product is prepared for delivery or pickup.
9. Customer receives product.
10. Business marks the order as “fulfilled” in the dashboard.
Jetson’s voice technology aims to add advanced search and commerce capabilities to voice assistants by enabling multi-step conversations. These allow a user to explore a menu or catalog of customized products and perform transactions in a natural and unconstrained manner. Its technology utilizes AI to conduct intelligent conversations with consumers on behalf of a business. This artificial intelligence is based on the neuro-linguistic processing of systems such as Google Home and Amazon Alexa. Additionally, the company has developed a proprietary machine learning algorithm to offer a more sophisticated AI system which can perform deductive reasoning and complete other complex actions. The machine learning has been developed to learn from each conversation with users and continually self-improve. It also collects voice metadata on the backend of the system to introduce a greater level of accuracy and enhanced interaction over time.
To begin offering voice commerce features, merchants must set up a brand profile on the Jetson platform. The dashboard is a self-service dashboard which operates similar to Shopify. Merchants create their own workspace where they can input business information such as hours of delivery, hours for pickup, and business classification. Merchants can also import their product catalogue with items such as product descriptions, pricing, promotions, modifications for each product (e.g. color or size), and custom dialogue for each product. The Jetson system then pulls the item details from the dashboard when conversing with consumers.
Jetson aims to provide businesses that sign up for its platform with enhanced voice-discoverability. Companies can input keywords on their brand profile that would trigger results when consumers make searches through the Jetson platform, essentially creating “voice SEO (search engine optimization)”. For example, an Italian restaurant could make “spaghetti” a keyword. When a customer searches via Jetson for “places selling spaghetti near me,” Jetson would list the business as an option. Additionally, companies can input deals and promotions they are currently running, providing an option to vocally explain deals to consumers. For example, if a company is running a promotion on Nike shoes and a consumer searches for “best deals on Nike shoes,” their listing would be brought up as an option.
Jetson and Enterprise
The company currently offers three versions of its technology; a free-to-use service, Jetson, and Jetson Enterprise. The free-to-use service enables businesses to sign up for the Jetson platform to improve their voice discoverability and enable consumers to find out general business information. Jetson is the base version of the voice technology that comes in the form of a self-service dashboard. It comes with the features necessary to process voice transactions and integrates with voice assistants like Alexa and Google Home. The Jetson dashboard’s features are controlled and viewed through the dashboard.
Features of Jetson include:
· Dialogue customization
· Upload of menu items or products
· Integration of merchant payment providers
· Customer insight and analytics
· Dedicated support
· Fraud analysis
· Processing of all major credit cards
Jetson’s Enterprise offering provides clients with licensing and integration of its tools into existing client operations. Jetson can provide companies with full end-to-end integration, hybrid integration, or its micro service API and reference designs, enabling companies to develop their own systems with Jetson technology. In addition to all the features offered by Jetson’s dashboard, Enterprise also provides companies with API access, kiosk and IoT integration, and the ability to integrate with enterprise resource planning (ERP), point-of-sale (POS), and property management systems.
Integrations/Multichannel ordering
Jetson’s technology is platform agnostic and currently can be integrated with communication channels such as Alexa, Google Home, phone, SMS Text, messaging, and mobile apps. In 2020, the company released its own mobile app for consumers available on both Android and iOS. Customers can place orders, manage their general account information, and set up Jetson Pay through the app.
Jetson Pay
With Jetson Pay, Jetson aims to unify payments across all devices and channels for conversational commerce. It can link consumer payment accounts across various systems such as Alexa, Google Home, and other smart speakers and virtual assistants. This provides consumers with the ability to pay for all voice transactions with Jetson Pay rather than having to input new payment details for each purchase. Payments can be configured to use a dual authentication system whereby consumers receive a text message to their phone to verify a purchase prior to completing the transaction.
Intellectual Property
In 2018, Jetson has filed for a provisional patent covering its speech recognition ordering system, voice authentication method, and Jetson Pay. This patent is still awaiting an outcome from the U.S. Patent Office. Additionally, the company has filed its patent under the Patent Cooperation Treaty, with the aim of protecting its technology worldwide.
Most recently in 2020, Jetson has submitted its “Statement of Use” for the trademark Jetson after receiving a notice of allowance by the U.S. Patent Office. The company is also currently filing for a provisional patent covering its voice search and discoverability engine.
EXECUTIVE TEAM
Peter Peng, Founder and CEO: With over 11 years of experience leading companies in both software and hardware, Peter has a passion for crafting new user experiences surrounding emerging technologies. In 2014, Peter was one of the first in the world to lock/unlock a smart lock with Google Glass using voice and visual interfaces. His passion for the commercialization of AI through voice is what lead to the creation of Jetson, an intelligent voice commerce platform. Peter holds an undergraduate degree from the University of Central Florida
Heber Maughan, CFO: Heber joined Jetson in 2019 to serve as the company’s CFO. He is also the owner of MaughanSullivan, an accounting and financial services firm, and Maughan and Associate, a tax and business consulting firm. Prior to that, he was the VP and treasurer of MonaVie and the CFO of InnerLight WorldWide. He has also served in C-suite level roles at Star Bridge Systems and Paradigm Medical Industries. He earned his master’s in accountancy from BYU and his BS in accounting and finance from Oklahoma State University.
Additional Team
Sadrani, Vidhiben Bharatkumar (Director of Engineering)
Li, Yang (Software Engineer)
Brown, Riley (Software Engineer)
Martinez, Luis (Software Engineer)
Antsygina, Laura (UX Designer)
Bishop, Michael. (Customer Experience Manager)
Chumazova, Olesya (Digital Marketing Specialist)
Business Model
In 2020, the company has decided to adjust its business model to bring more businesses (and therefore consumers) into the Jetson ecosystem. Previously, any businesses listed on Jetson needed to pay a higher monthly fee in addition to licensing and merchant fees. The company has determined that overall discoverability of merchant products should be a priority moving forward. It now has three service options for businesses:
| Basic
| $0 per month
| It is now free for businesses to list their general information, products, promotions, and services on the Jetson platform. This enables businesses to be “discoverable” through voice channels. For Jetson, this helps develop their business community and acts as a method to bring future clients onto the platform.
| Jetson
| $49 per month
| Companies looking to sell on Jetson will need to sign up for Jetson’s base service. This service costs $49 per month (down from $125 per month) and does not have any other Jetson-related fees. Sellers can process customer payments through the Jetson platform.
| Enterprise
| One-time engineering fee and monthly fee based on usage
| The Jetson Enterprise plan enables customers to white-label their voice commerce services using Jetsons’ APIs. The enterprise plan also includes revenue metrics and analytics, integration with third-party ERP and PoS systems, and dedicated customer support.
Currently, Jetson focuses on selling its technology to small- and medium-sized businesses in partnership with go-to-market partners. It distributes its technology online, through its direct sales force, and through a variety of indirect distribution channels such as value-added resellers and partners.
Merchants fees are charged to vendors at the point-of-sale. Jetson currently uses Stripe; so merchant fees are paid to Stripe. Merchants can set up their Jetson dashboards with their own Stripe account in order to process payments.
USER TRACTION
Currently, Jetson has 9,881 businesses signed up on its platform, up from 138 in October 2019. Of those businesses, 8,650 are signed up as sellers on the platform. Additionally, there are currently over 1.1 million products available for purchase through the Jetson platform. Most products available to be sold on the platform are from restaurants.
INDUSTRY AND MARKET ANALYSIS
E-commerce
According to DigitalCommerce360, consumers spent $601.75 billion online through U.S. merchants in 2019, representing 14.9% year-over-year growth. Of total retail sales in 2019, e-commerce represented 16%, up from 14.4% in 2018 and 13.2% in 2017. Amazon alone accounted for more than a third of all e-commerce sales in the U.S in 2019. E-commerce sales represented about 56.9% of all retail sales growth, the largest share of growth for purchases made online since 2008.
The COVID-19 pandemic has only accelerated the growth of e-commerce. In May 2020, consumers spent $82.5 billion online, up 77% year-over-year. According to an Adobe report, it would’ve taken four to six years to reach the levels of online spending in May 2020 if the growth continued at the same levels of the past few years. Additionally, buy online and pick up in-store has increased in adoption from consumers, growing 195% in May 2020. John Copeland, VP of Customer and Marketing Insights at Adobe said, “COVID-19 has changed business forever. We think that over the next couple of months we will see an even bigger focus on experience-driven e-commerce, as the competition heats up where consumers are now putting so much of their attention online.
There are several reasons why e-commerce is growing at a rapid pace, including:
- Mobile Adaptivity: Technological advancements such as voice-activated shopping and better connectivity have caused a surge in mobile shopping revenue and improved customer experience.
- Omnichannel Retailing: Businesses have evolved to interact with their customers through multiple channels such as websites, email, social media, and physical stores.
- Convenience: The ability to purchase goods 24/7, 365 days a year without downtime for bad weather or holidays enables customers to shop whenever they want from the comfort of their home.
- Greater Range of Offerings: With the capability of low overhead costs for online sales, e-commerce can reduce the cost of operations which enables some businesses to transfer these costs to price-sensitive consumers and focus on product offerings.
- Individualized Products and Services: Sophisticated algorithms enable businesses to offer more personalized recommendations to customers.
Restaurants
The restaurant and food service industries have undergone significant changes since the onset of the COVID-19 pandemic. Industry experts have reported that years of transformative investments in technology could rapidly come to maturity for many organizations within the industry. These technologies are accommodating the new ways consumers prefer to order and pick-up and implement cloud-based software platforms, payments and inventory infrastructure, and new curated, unattended experiences.
Additionally, these technological advances have caused restaurants to rethink the real estate they occupy as well. Operators are reimagining how customers navigate lines, designating new pick-up areas, as well as prioritizing more touchless options and less face-to-face interactions.
Voice Commerce
Juniper Research projected that the voice commerce market will reach over $80 billion per year by 2023. The number of smart speakers in U.S. households reached 157 million in December 2019, a rapid 135% growth in two years. Interestingly, many households own multiple smart speaker devices, with the average number of devices per household at 2.6 in December 2019, up from 1.7 in 2017. Amazon is a major player in the market, with some analyst reports estimating it has captured up to three-quarters of the overall market share.
Voice users are using their smart devices for numerous functions in the purchasing journey, including product research, price comparison, cart management, and much more. In an Adobe report, 47% of smart speaker owners reported using a device to initiate product search and research, 43% said they use the device for creating shopping lists, and nearly one-third used them for price comparison. Over 85% of voice purchases were for items $100 or less, with many consumers not yet using the smart devices to order higher-priced items.
[ix] Juniper Research projected that the voice commerce market will reach over $80 billion per year by 2023.
A 2018 report by OC&C Strategy Corporation found that the market size for voice commerce was valued at $1.8 billion in the U.S. and $200 million in the U.K. in 2017. The average annual spend for voice shoppers in the U.S. today is $300 in the U.S. and £150 in the U.K. The report projects the voice commerce market size to reach $40 billion in the U.S. and $5 billion in the U.K. by the end of 2022. The report also estimates that voice shopping demographics tend to skew towards younger generations and affluent households with children. Consumers in the 18-39 age range account for ~70% of all voice shopping. Additionally, 61% of voice shoppers have children at home.
According to a 2019 report by eMarketer, some consumers are still nervous about the security of shopping with voice technology. As a result, voice shopping is currently best placed to take advantage of consumers looking to reorder certain products with a simple command. However, as technology and consumer trust improve, voice shopping is expected to increase in users. By the end of 2019, approximately 22.7 million Americans are expected to use voice technology to purchases goods, up by 31.5% from 2018.
Highlights from venture capital financings into communication software companies from 2009 to 2019 include:
· Capital invested peaked in 2016 with $10.46 billion invested
· Deal count peaked in 2014 with 933 total deals
· Deal count has declined year-over-year every year since 2014
· From 2009 to 2019, there has been over $40.4 billion invested in communication software companies across 7,271 total deals
Perceived Competitive Advantage
The company believes the following factors enable it to compete effectively.
- Early-Mover Advantage: Over the first few years the team at Jetson identified the pain points and barriers to entry within the market and has identified and penetrated two vertical industries – food and retail – with its emerging technology.
- Partnerships: Jetson has successfully signed partnerships with large enterprises such as Amazon, Shopify, Delivery.com, and Square. These partnerships allow for the enablement of their merchants to easily join the Jetson platform.
- Pricing & Scalability: Jetson’s platform allows businesses of all sizes to create a voice-first marketplace using its turnkey dashboard and self-service platform. Jetson aims to differentiate itself by avoiding an agency model that creates one off voice solutions for brands. By doing this, Jetson hopes to reduce the time and cost needed for deployment in their voice store. Jetson offers both a free and a paid version.