This AI startup said no to VCs after ‘perplexing’ experiences with them

As tech giants invest their seemingly unlimited resources into AI, some wonder if a superior product can ever be developed outside the walls of Meta or Google. Vadim Berman, co-founder and CEO of Singapore-based Tisane Labs, tells Tech in Asia that at least one VC has asked him this question, which he finds “bizarre.”

His reaction isn’t surprising, given that his AI startup is attempting to do just that.

“If more resources meant automatic winning, then the first person with a rock would become an undisputed absolute ruler of the world,” the software engineer-turned-entrepreneur says. “Either these people slept through the last decades or they weren’t paying attention.”

Image credit: Tech in Asia

Berman noted how that encounter was just one of several “perplexing” interactions he’s had with VCs. That is why Tisane, which has created AI for moderating content, has taken no VC funding.

Six years after its founding, the startup has attracted clients such as the armed forces and law enforcement agencies in the US, UK and Scandinavian countries. Other customers include an international hotel chain, a global compliance firm, and providers of digital forensics and intelligence solutions.

Tisane Labs was profitable three financial years ago and came close to it in the next two, with losses in the single-digit thousands of dollars. The company also grew its revenues by 15% in financial year 2022.

Here’s our conversation with Berman, which was edited for clarity.

What’s your pitch to customers? Why should they use your solution over alternatives?

Tisane is about “dirty” natural language processing (NLP): AI with a focus on netspeak and abuse. We find abusive and problematic content such as criminal activity, hate speech, sexual advances, and more.

The platform is not just a “filter for bad stuff.” We also have features that are common in mainstream APIs but are honed for applications in our area. Our solution is easy to use and integrate, plus it’s powerful and cost-effective.

For bigger trust and safety customers, algorithmic transparency – which we provide – is important.

What was your fundraising history like?

While I invested my own money instead of getting an angel investment, we did try to fundraise with VCs so we could hire people and establish infrastructure faster. We were not successful and the experience was – to put it very mildly – perplexing.