ARTIFICIAL INTELLIGENCE for Software Development

Industry

Technology

Company Type

Software/Artificial Intelligence

Location

USA

Size

$8 million

Investment Type

Debt/Equity

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Helping Great Companies Grow

Overview

Phase Change Software LLC (“Phase Change”) is seeking $8 million to commercialize its Artificial Intelligence (“AI”) technology to radically improve the efficiency of software development

  • Impressive current investor base – raised $25.8 million from 2006-19
  • Disruptive technology – true paradigm shift in how software is developed, maintained, modified, tested and shared – driving potential generational economics
  • Long-term structural solution to the productivity deficits of global IT industry, by driving continuous, exponential improvements in software development productivity – “Moore’s Law for Software”
  • Relevant to all programming languages, industries and use cases – initially focusing on COBOL
  • AI understands and interprets software for developers, and collaborates like an expert co-worker
  • Established proof of concept with the Depository Trust and Credit Corporation (DTCC)
  • Limited competition – new technology that uses proprietary new class of cognitive AI software
  • Proprietary technology – patents and trade secrets
    • three U.S. patents issued – pursuing  additional patents in the U.S. and overseas
    • significant portfolio of trade secret
  • Management has significant technology and business experience – led by Steve Bucuvalas with a deep understanding of mathematics, cognitive science and AI techniques with over 35 years of managing IT staff and projects
Helping Great Companies Grow

Opportunity

  • Global IT industry is experiencing severe structural problems
    • changing market conditions are creating more work than it can cost-effectively handle
    • shortage of knowledgeable developers who understand the applications, and inadequate tools
    • large software systems are expensive to maintain & modify – complex & labor/time intensive
    • too complex for humans to understand completely and precisely
  • Estimated that 70% of all spending is to “keep the lights on” or maintain the “status quo” so that applications do not become obsolete or stop working
  • How are organizations coping?
    • software developers are only performing breakdown maintenance
    • seemingly endless stream of issues drive developers to quick fixes
    • little if any opportunity for quality  upgrades
    • organizations stop innovating
Helping Great Companies Grow

Solution/Strategy

  • Phase Change is commercializing a proprietary new class of cognitive AI technology
    • interprets and understands software code like a developer, and collaborates like an expert co-worker
    • disruptive technology – paradigm shift in how software is developed, maintained, modified, tested and shared – driving potential generational economics
  • Founded in 2005 – over 14 years exploring and developing groundbreaking, new class of AI technology applied to software development
    • AI learns as it is exposed to more code
    • drives exponential productivity increases – generating potential network effects
  • Long-term structural solution to the global IT industry problems by creating AI solution that significantly increases software development productivity
    • capable of supporting all software languages, all application domains and use cases
    • initial focus on large, legacy COBOL applications
    • as the AI consumes, understands and learns from a broad universe of software, positioned to become the nexus for all software development activities
  • Patents and trade secrets
    • U.S. Patent issued No. 10,296,330 (2019) – identification of functionally equivalent code and replacing with a vetted equivalent
    • U.S. Patent issued No. 10,452,390B2 (2019) – replacing poor programming constructs in COBOL code with a better equivalent function
    • U.S. Patent issued No. 15/572,926 (2019) –  converting code to language-agnostic code
    • pursuing additional patents in the U.S. and various international jurisdictions
    • significant portfolio of trade secrets
    • continually expanding technical frontier and tribal knowledge – building substantial code base
Helping Great Companies Grow

Management

Steve Bucuvalas

CEO, Founder & Board Member

Innovator, entrepreneur and self-taught polymath. After the successful sale  of his company eoTek, founded Phase Change in 2005 with the thought: “I’ve been developing software for decades, there’s got to be a better way.” Chief Inventor of Phase Change’s software digitization with interdisciplinary perspective to solving software problems – including category and computation theory, program analysis, mathematical logic, cognitive science, neuroscience and human evolution. Led corporate advance technology groups initially working on the development of ATM networks, specialized DBMSes, and MVS-exploit identification. Ran AI group focused on developing expert systems for financial services institutions. B.S. Evolutionary Biology from Harvard College.

Gary Brach

President & Board Member

Over 25 years of experience as a software entrepreneur in the storage and insurance industries.

Former Director at Intuit Inc. after selling Prestwick Services LLC (leading premium pay-as-you-go billing platform) to Intuit in 2013. CEO of Agency Port Software (now owned by Accenture Inc.), the leading provider of agent portal technology for the property and casualty insurance industry. Co-founder and President of Smart Storage Inc. (now owned by Dell Inc.), the first company to commercialize CD-recording and archival storage virtualization software.  BS from Brown University. MBA from the University of Chicago.

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Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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