{"id":1301,"date":"2021-09-22T12:41:45","date_gmt":"2021-09-22T16:41:45","guid":{"rendered":"https:\/\/research.ncsu.edu\/win\/?p=1301"},"modified":"2023-11-27T15:11:01","modified_gmt":"2023-11-27T20:11:01","slug":"artificial-intelligence-startup-in-raleigh-has-the-smarts-to-be-a-billion-dollar-company","status":"publish","type":"post","link":"https:\/\/research.ncsu.edu\/win\/artificial-intelligence-startup-in-raleigh-has-the-smarts-to-be-a-billion-dollar-company\/","title":{"rendered":"Artificial intelligence startup in Raleigh has the smarts to be a billion dollar company"},"content":{"rendered":"<div class=\"post-author\">\n<p>by Chantal Allam \u2014 September 22, 2021 .<\/p>\n<\/div>\n<div class=\"post-wrap\">\n<div class=\"post-content entry-content\">\n<p><em>Editor\u2019s note: This article is part of a multimedia series called \u201cTomorrow\u2019s Unicorns: A look inside Raleigh\u2019s $1B startup pipeline,\u201d produced in conjunction with\u00a0Innovate Raleigh. The series aims to spotlight some of the region\u2019s homegrown startups tipped to hit the $1-billion valuation mark, thus becoming a so-called \u201cunicorn\u201d in the language of investors, in the not-so-distant future.<\/em><\/p>\n<p><strong>RALEIGH<\/strong>\u00a0\u2013 Three years after ex-Epic Games CEO\u00a0<a href=\"https:\/\/www.linkedin.com\/in\/mikecapps\/\">Michael Capps<\/a>\u00a0first launched\u00a0<a href=\"https:\/\/diveplane.com\/\">Diveplane<\/a>, a company aimed at \u201ckeeping the humanity\u201d in artificial intelligence (AI), it\u2019s notched a series of big wins.<\/p>\n<p>In just the last year, the Raleigh-based startup landed partnerships with healthcare giants like Duke Health, and the UK\u2019s NHS Foundation Trust and BREATHE, a health data research hub.<\/p>\n<p>It also closed on $3 million in new funding, bringing its total raised to around $10 million to date. It\u2019s even attracted star-studded investors, including US women\u2019s soccer stars Megan Rapinoe and Mia Hamm.<\/p>\n<ul>\n<li><strong>VIDEO:<\/strong>\u00a0<a href=\"https:\/\/www.linkedin.com\/video\/event\/urn:li:ugcPost:6845740432677306368\/\">Watch Chantal Allam\u2019s interview with Diveplane via LinkedIn.<\/a><\/li>\n<\/ul>\n<p>Meanwhile, Capps hinted other big deals could be in the works.<\/p>\n<p>\u201cI can\u2019t speak to it yet, but we\u2019re partnered with some cool organizations,\u201d he told WRAL TechWire in a Zoom call. \u201cWe\u2019re lucky to sort of punch above our weight class in the industry, so I\u2019ll just leave it at that.\u201d<\/p>\n<p>\u201cWe had a long path of building software,\u201d he added, \u201cbut now that we\u2019ve started commercializing, we\u2019re seeing much better uptake. We\u2019re at that wonderful phase where companies are now calling us.\u201d<\/p>\n<p>While he wouldn\u2019t disclose annual revenue figures, he said: \u201cWe expect to grow 3X in the next couple of months.\u201d<\/p>\n<p>Could his firm be on track to becoming a $1-billion enterprise, otherwise known as a \u201cunicorn\u201d in venture capital circles?<\/p>\n<p>He didn\u2019t rule it out: \u201cWe have significant growth potential.\u201d<\/p>\n<h4>SYNTHETIC DATA<\/h4>\n<p>Its fastest-growing product,\u00a0<a href=\"https:\/\/diveplane.com\/geminai\/\">GEMINAI<\/a>, creates a synthetic \u201ctwin\u201d data set that enables sharing and analysis of highly sensitive data while protecting an individual\u2019s privacy. The \u201cnew\u201d data is accurate and \u201cstatistically equivalent,\u201d but omits any personal identifiers, like name or date of birth.<\/p>\n<p>The uptick comes as data breaches are on the rise.<\/p>\n<p>Healthcare breaches, alone, have nearly doubled since 2018 and continued to climb through the first half of 2021, according to\u00a0<a href=\"https:\/\/cybersecurity.criticalinsight.com\/2021_healthcare_data_breach_report\">a\u00a0report\u00a0by Critical Insight<\/a>, a Seattle-based healthcare-focused cybersecurity firm.<\/p>\n<p>Meanwhile, more than\u00a0<a href=\"https:\/\/www.herjavecgroup.com\/wp-content\/uploads\/2019\/12\/Healthcare-Cybersecurity-Report-2020.pdf\">93% of healthcare organizations<\/a>\u00a0experienced a data breach in the past three years (Herjavec Group).<\/p>\n<p>And it\u2019s costs big money.<\/p>\n<p>The healthcare industry lost an\u00a0<a href=\"https:\/\/safeatlast.co\/blog\/ransomware-statistics\/#gref\">estimated $25 billion to ransomware attacks in 2019<\/a>\u00a0(SafeAtLast).<\/p>\n<p>\u201cData privacy affects us all, and we\u2019re really seeing a shift in the market,\u201d Capps said. \u201cIt\u2019s no longer enough to simply mask or anonymize. Organizations must go further to protect the most intimate of data sets, and that\u2019s what we\u2019re amazing at.\u201d<\/p>\n<p>Diveplane\u2019s AI technology spun out of Hazardous Software, a company founded in 2007 by\u00a0<a href=\"https:\/\/www.linkedin.com\/in\/chrishazard\/\">Chris Hazard<\/a>, Diveplane\u2019s co-founder and chief technology officer.<\/p>\n<p>Hazard holds a PhD in computer science from NC State, and worked as a software architect at Motorola and Kiva Systems.<\/p>\n<p>Capps, meanwhile, is a fixture on the local Triangle startup scene. Born in Raleigh, he began his career with post-graduate degrees at UNC-Chapel Hill, MIT and the Naval Postgraduate School. Later, he spent nearly a decade as president of Epic Games, creators of mega-hit Fornite, and one of the region\u2019s early breakout unicorns, a company valued at more than $1 billion. (Today, Epic Games is estimated to be worth\u00a0<a href=\"https:\/\/www.epicgames.com\/site\/en-US\/news\/announcing-a-1-billion-funding-round-to-support-epics-long-term-vision-for-the-metaverse#:~:text=Careers-,Announcing%20a%20%241%20Billion%20Funding%20Round%20to%20Support%20Epic's,Term%20Vision%20for%20the%20Metaverse&amp;text=Today%20Epic%20Games%20announced%20that,valuation%20is%20now%20%2428.7%20billion.\">just shy of $30 billion.<\/a>)<\/p>\n<p>As his LinkedIn profile notes, his tenure included a \u201chundred game-of-the-year awards, dozens of conference keynotes, a lifetime achievement award, and a successful free-speech defense of video games in the U.S. Supreme Court.\u201d<\/p>\n<p>By 2013, Capps decided his time was up. But it didn\u2019t take long for him to sniff out his next venture.<\/p>\n<p>He met Hazard \u201cthrough a mutual acquaintance\u201d on Raleigh\u2019s startup scene, and shared the \u201csame thoughts on the future of AI and the ethical use of data.\u201d<\/p>\n<p>By 2018, Diveplane was born. Among its missions: making\u00a0<a href=\"https:\/\/whatis.techtarget.com\/definition\/black-box-AI#:~:text=Black%20box%20AI%20is%20any,user%20or%20another%20interested%20party.&amp;text=That%20process%20is%20largely%20self,programmers%20and%20users%20to%20interpret.\">\u201cblack box\u201d AI<\/a>,\u00a0any artificial intelligence system\u00a0whose inputs and operations are not visible to the user, easier to interpret and understand.<\/p>\n<p>\u201cBig picture, we want to keep human decision-making in automated systems,\u201d Capps said. \u201cWhen [Hazard] finally told me about [his declassified work], I was like, \u2018You have explainable machine learning. We\u2019ve got to put this in front of everyone.\u2019\u201d<\/p>\n<p>Diveplane has built what it calls the world\u2019s first \u201chuman-understandable\u201d machine-learning platform. As it boasts on its website, its tools are \u201ctrainable, interpretable, and auditable.\u201c<\/p>\n<p>Apart from GEMINAI, it has other products like SONAR, an anomaly detection tool to identify fraud, and ALLUVIAN, an analysis tool for the real estate market.<\/p>\n<p>The name Diveplane is derived from the parts on a submarine that make it dive and surface. (Capps once taught at a Naval post-graduate school, and Hazard also worked for the Department of Defense.)<\/p>\n<p>It\u2019s also metaphorically significant. \u201cAI is about searching up and down, high and low,\u201d Capps told\u00a0<a href=\"https:\/\/www.wraltechwire.com\/2018\/08\/08\/former-epic-games-ceo-plans-to-make-understandable-a-i-with-diveplane-startup\/\">TechWire\u2019s late Alan Maurer back in 2018.<\/a><\/p>\n<h4>LOOKING AHEAD<\/h4>\n<p>Diveplane is now at an inflection point. At last count, it has 14 patents approved and another 40 patents pending. It\u2019s scaling across multiple verticals, including finance, healthcare, and defense. Another big raise is also likely on the cards, \u201cprobably in the next few months.\u201d<\/p>\n<p>Still, he described enterprise sales as \u201cslow and painful.\u201d<\/p>\n<p>\u201cGovernment, intelligence officials, healthcare and finance leaders, they\u2019re not fast to trust. [We\u2019re] like a locksmith. [They\u2019ve got to] trust us with the jewels.\u201d<\/p>\n<p>But he remains confident.\u00a0\u201cIf the National Security Agency is using it, and Duke is using it, it\u2019s a lot easier to convince MasterCard to use it. Once we convince them, or whoever, it all falls.\u201d<\/p>\n<p>Before the pandemic, Diveplane had offices in North Raleigh. But now they\u2019re all working remotely. The team now stands at 22, and is looking to add a senior engineer and developer to its rolls.<\/p>\n<p>Above all, Capps said making big profits comes secondary to his main objective: social impact.<\/p>\n<p>Capps said he\u2019d eventually like to opensource Diveplane\u2019s technology.<\/p>\n<p>\u201cSome of our tools, if they were free and we can afford unlimited compute, I would love to give them all away. I can\u2019t afford to do either of them; but as soon as I can, I will. That\u2019s the goal.\u201d<\/p>\n<p><em>This editorial package was produced with funding support from Innovate Raleigh and other partners. WRAL TechWire retains full editorial control of all content.\u00a0<\/em><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Three years after ex-Epic Games CEO\u00a0Michael Capps\u00a0first launched\u00a0Diveplane, a company aimed at \u201ckeeping the humanity\u201d in artificial intelligence (AI), it\u2019s notched a series of big wins.<\/p>\n","protected":false},"author":1119,"featured_media":116,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ncst_custom_author":"","ncst_show_custom_author":false,"ncst_dynamicHeaderBlockName":"","ncst_dynamicHeaderData":"","ncst_content_audit_freq":"","ncst_content_audit_date":"","ncst_content_audit_display":false,"ncst_backToTopFlag":"","footnotes":""},"categories":[9],"tags":[155,110,112,47],"class_list":["post-1301","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-artificial-intelligence","tag-diveplane","tag-mike-capps","tag-wolfpack-investor-network"],"displayCategory":null,"acf":{"ncst_posts_meta_modified_date":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - 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