# Biscuit AI

Closed: Jan. 2025

## About this raise

Biscuit AI, with a valuation of $6.01 million, is raising funds on StartEngine. The company addresses key retail challenges through the use of AI-powered solutions in stores via mobile devices, kiosks, and future robotics. Biscuit AI provides personalized support based on the retailers’ data and helps to enhance customer experiences and business operations. The technology aims to enhance revenues and boost efficiency and is currently undergoing testing in retail locations to get refined for real-world use. Lincoln Smith founded Biscuit AI in March 2024. The current crowdfunding campaign has a minimum target of $9,999.60 and a maximum target of $1.23 million. The campaign proceeds will be used for research and development, company employment, working capital, and marketing.

## Investment Overview

**Not Funded:** $0

### Deal Terms

#### Total Commitments

| Platform    | StartEngine |
|-------------|-------------|
| Start Date  | 10/22/2024  |
| Close Date   | 01/20/2025  |
| Min. Goal    | $10,000     |
| Max Goal    | $1,235,000  |
| Min. Investment | $101     |
| Security Type | Equity - Common |

#### Company Stage

Early Stage

#### SEC Filing Type

RegCF

Price Per Share: $0.78

Pre-Money Valuation: $6,006,000

### Company & Team

#### Company

- Year Founded: 2024  
- Industry: Business Services, Software, & Applications  
- Tech Sector: Retailtech  
- Distribution Model: B2B  
- Margin: High  
- Capital Intensity: Low  
- Location: San Francisco, California  
- Business Type: High Growth  
- Company Website: [Visit Website](https://www.biscuit.ai/)

#### Team

- Employees: 1  
- Prior Founder Exits: Yes  
- Founder Name: Lincoln Smith  
- Title: CEO  
  
**Funding data not publicly available**

## Financials

### Summary Profit and Loss Statement

|         | FY 2023   | FY 2022   |
|---------|-----------|-----------|
| Revenue | $0        | $0        |
| COGS    | $0        | $0        |
| Tax     | $0        | $0        |
| Net Income | $-65,456 | $0     |

### Summary Balance Sheet

|                          | FY 2023 | FY 2022 |
|--------------------------|---------|---------|
| Cash                     | $1,707  | $0      |
| Accounts Receivable       | $0      | $0      |
| Total Assets             | $4,544  | $0      |
| Short-Term Debt          | $0      | $0      |
| Long-Term Debt           | $0      | $0      |
| Total Liabilities        | $0      | $0      |

## Ratings

### Synopsis

Biscuit AI focuses on enhancing in-store retail operations through AI-powered solutions. The company uses mobile devices, kiosks, and plans for future robotics to deliver personalized support, informed by retailer data. This approach aims to improve customer experiences and streamline business operations. Biscuit AI's primary customers are retail businesses facing challenges such as labor shortages and increasing consumer demands.

Biscuit AI's primary focus will be to address the problem of slower growth and operational inefficiencies in the retail sector. In everyday terms, consider a retail store where customers frequently wait for assistance due to understaffed floors. This scenario can lead to frustration and lost sales opportunities. Biscuit AI's AI-powered kiosks and mobile devices can assist customers by providing immediate support and product recommendations, enhancing the overall shopping experience.

### Market

The generative AI in customer service market within the U.S. is valued at approximately $162 million, with an expected growth rate of 25.32%. Key factors driving growth include the increasing need for digital transformation in retail and the demand for enhanced customer experiences.

### Team

The founder and CEO, Lincoln Smith, brings over a decade of experience in AI, machine learning, and computer vision, along with 16 years in robotic process automation. Supporting Smith are advisors like Don Hazell, who provides sales leadership with over 35 years of experience, and Don Faw, Intel's Principal AI Engineer with nearly 30 years at Intel.

### Differentiation

Biscuit AI differentiates itself by focusing on AI-powered, data-driven support tailored for retail environments. This specialization allows it to offer personalized solutions that enhance customer engagement and operational efficiency.

### Performance

Biscuit AI is in the early stages of its growth trajectory, currently undergoing trials at select retail locations. The importance of product refinement and securing additional funding to support growth initiatives will be critical for future financial performance.

### Risks

Biscuit AI faces unique risks, including a limited financial runway with cash on hand of approximately $9,938 against a monthly burn rate of $7,000. Furthermore, it operates in a competitive market with established players and high hurdles to entry, necessitating a focus on market penetration and scalability.

### Bullish Outlook

Biscuit AI presents a bullish outlook driven by its alignment with market opportunities within the generative AI sector for customer service in retail. The company’s unique strength lies in its focus on personalized support and the experienced leadership team that drives its innovations.

### Bearish Outlook

The bearish outlook includes recognizing significant market challenges and financial constraints that could hinder Biscuit AI’s ability to scale effectively. Competitive dynamics and technological challenges may also pose obstacles to achieving sustainable growth.

### Executive Summary

Biscuit AI is positioned to enhance retail operations through AI-driven solutions, raising funds through common equity with a pre-money valuation of $6 million. Early traction shows promising growth potential, yet financial constraints and competitive challenges require careful consideration when evaluating the investment opportunity.

## Company Funding & Growth

### Funding history

| Close Date | Platform   | Valuation | Total Raised | Security Type       | Status        | Reg Type |
|------------|------------|-----------|--------------|---------------------|---------------|----------|
| 01/20/2025 | StartEngine | $6,006,000 | $0           | Equity - Common     | Not Funded    | RegCF    |