How AI Agents Are Closing the Books for Onchain Companies

Yeah. Well I'm so pumped for this. There are, like, some companies that people, like, you know, maybe familiar with, but, like and I don't mean this in, like, a negative way at all. I think that there are some secretly incredible companies. This is why this is why we should be venture investors or something because I feel like we get a little window into these specific numbers every now and then. I'll be your anchor check I'm so welcome. My, you know Alright. Go show. Salary. Then I'll be I'll be back. For sure.

Yeah. Yeah. So we're Entendre AI. We build AI agents for accountants. We started with the

most underserved, most difficult, least sexy aspect of that, which is digital assets and stablecoins back in 2023. And we got to you know, as a result of our conviction and working with some of the best teams in the business for many years

guys you guys work well. Just go right there. Mean, work with this was the first impression with with Yeah. Meeting you and the team. Was like, holy crap. Like, they they have won all of the best companies as clients. Yeah. Like, immediately. Like, you're working with Rain Yeah. Braille. Like, chill a little bit of the client list and how how you met those teams. Think about a company like Rain Yeah. Just by themselves, counting complexity of that.

A little bit about this. Of course. Yeah. So what's interesting about our the the the stable coin digital asset industry is a lot of these companies are highly regulated, and they're very complexly structured as a result. So many legal entities, many financial accounts. So on Tundra, on average, our customers have over 30 financial accounts. You, you know, you can assume even the biggest companies in the world, the cursors, the, you know, linears of the world who are doing amazing things.

They're very simply structured. Right? SaaS businesses, very forecastable revenue, very limited liabilities on their balance sheet. They're not in twenty, thirty different markets and have, you know, a hundred, two hundred financial accounts that they have to track. And, you know, that was what we wanted to solve for. We wanted to be able to in this new world where the way money moves is changing, The way that you have to track it, it needs to change. And so it was actually greenfield for us. Right?

No one really took it in the approach that we wanted to take it. We had two major tailwinds, obviously, stablecoin adoption, but also the move from RPA based automation to LM based automation, and basically saying, hey. Look. There's gotta be a better way to do this. Otherwise, these companies won't scale. And that's ultimately what drove the best companies in the world to wanna trust us with their financials and be able to rely on us to basically close their books every month through our platform.

And we've helped plenty of companies. One of them actually, our first customer was Lava, Bitcoin lending backed by Founders Fund. They just raised $200,000,000 in q four last year. We went from working with them as a pre seed seed company to them becoming a unicorn. And, obviously, it's been amazing because we had probably 10 different, instances of that happening across our client base. And, yeah, it's been fantastic so far. RPA. What does that stand for? Yeah. Basically, like, robotic process automation.

And now it's a transition from that system to

AgenTex. Exactly. So I'm I'm familiar with this. So Yeah. That seems like a very significant

turning point. Say more on that. Exactly. So back office software and accounting Don't get bored yet. They dialed that. Well, yeah. What's what's interesting is it's so unsexy, and it's so underserved from just, like, a product standpoint. It's very difficult to bring in product people that are very passionate about this problem, but it's really core infrastructure for the entire financial system. Yeah. But those who have to hear deeply here. Exactly.

You know, it's it's not something that's gonna, like, get everyone riled up, but, like, the one or 2% of people at the organization who are on the hook. Well, exactly. And I think we talked about a lot of people talk about capital markets and consumer adoption of stablecoins. For us to it's like a it's like a phoenix rising from the ashes here.

We are at the stage where the biggest gating item now is the controllership of companies, the CFO of companies, the, you know, the board of directors of companies where they're all they're gonna deeply care about compliance, financial reporting, and also, what's their AI strategy. Right? So it's not just enough to adopt this new payment rails and just, you know, hope for the best.

You wanna make sure that you're scaling that and getting the upside of becoming this stablecoin native or stablecoin adjacent business so that you can unlock the rest of the globe. But you also wanna make sure your accounting team's not growing by x in headcount, which we're in a very interesting space because there's also not enough accounts to do the job. So

there has to be an AI solution for this if we're going to continue to Yeah. Adopt this technology. How does AI because this is so big for you guys. Yeah. How does how do agents fit into this? How do you scale without

scaling from a fixed standpoint? Yeah. Absolutely. So I think the biggest thing is, again, is just handling the complexity on behalf of these customers who that's not their core business is changing the world. Right? They, you know, expanding digital money more accessible, allowing people to borrow and and lend their Bitcoin, being able to, you know, work with financial institutions as their stablecoin on and off ramp provider or their stablecoin issuer.

So what we do is we we come in and we understand the complexity of their business across their financial accounts, across their organizational structure, across their legal entities, And we use AI to basically orchestrate all the accounting entries required so that the balances on your financial reports reconcile and are also understandable to investors, to management teams where without that, you basically have no supporting detail.

It's just blockchain explorers that are incredibly difficult to read or very fragmented reports in spreadsheets across different exchanges. And even we've actually kind of moved past just the the crypto side. We're actually handling the general accounting of all of our customers that have grown with us. So we're really just making a digital dollar the same as a dollar on the back office side. Snaps. Snaps for that. Yeah. Speak a little bit about the Yeah, sir. Yeah.

Maybe just the some of these lighthouse customers Yeah. One, and it's like, maybe I think when we talked last, the thing that really fascinated me was this kind of shared state system, because typically accounting is done where you have these, like, rules of the road that you have to abide by. Yep. Everyone has to abide by the rules based on where you are in the world, and then you have these, like, kind of walled garden financial scopes based on these companies.

And maybe if you get audited, like, you have you can kinda, like, piece them together historically. Yeah. With the blockchain, all these companies are building on this, like, shared network. Yep. And talk a little bit about the, like, network effects and how that helps serve clients Yeah. Maybe not just by themselves, but across the world. Yeah. It's funny. We know a little bit too much for our own good, I feel like. We

saw a lot of this happening before it's before it happened, before we we're we're months ahead. We were able to see the growth and understand the complexity and understand when some of these foundational companies like Braille and Rain and Polygon Labs and Lava are are opening, are expanding the new blockchains. Their deposit volumes are increasing. Guys start a venture. It's a little bit mean, we should we should talk about that. I think we could make it a joint thing. Yeah.

But but also, at the same time, that's a lot of trust. Right? So we are we are like stewards of our customers' financial activity because, yes, it is an open system, and there is, like, you know, that level of transparency. But then you see, like, the rise of certain chains, like Canton, where privacy is very important to institutions, which Entendre now supports Canton.

Shocking.

Yeah. We see, like, you know, sometimes there are folks who are willing to kind of, you know, to to increase their privacy on chain and and their activity on chain. Have visibility. And I think something that we're trying to think through is, like, how can we

expose insights Yeah. Without exposing Yeah. Some things that should be private or Of course. Yeah. Kept confidential. Where's the line there? And because you you guys and what was so fascinating Mhmm. Learning about this is, like, you are seeing so many interesting things geographically or which chains are moving, like, lot of the stuff that you can actually attribute back to certain companies, for instance. Yeah. I'm excited to see where that goes. We need to that conversation back up. Yeah. Was, like Yeah.

Six months ago. Had to say. Yeah. No. We're and and I will say, like, I I think a lot of the focus has been,

at first, storing your money, then it was, you know, growing your money, and now it's like, how do you track it? If we can get really good at making digital money ubiquitous with fiat money, businesses are only gonna see upside, and organizations are only gonna see the upside in it. And we're just, like, in this intersection that's really exciting between crypto and AI.

Because there's just, again, not enough people to do the work, but the volumes are increasing, the activity's increasing, and it's getting more complex, and that's kinda where we see a massive opportunity for us to become a very, very big business. Sure. And you guys, you said you just finalized your integration with Kanta? Yeah. What does that unlock for you in those ecosystems?

I'd imagine, like, know Braille Oh, no. Defense Yeah. Sponsors of this show, like, they are very embedded within those ecosystems. Does that those types of, like, products related releases unlock some some businesses are, like, very, very entrenched

with Canton or or other networks. Does that bring a very, very clear go to market effort for you to go after those? I think I think we'll see how it changes, but we kind of saw the rise and fall of many chains where customers would come to us and ask us to integrate with the chain, and we would have to make the call if we're gonna do it or not. And it's exactly not a good idea.

But I would say, like, yeah, we see, like, the Cantons, the Tempos, and it's really exciting for us because that just opens their go the, you know, their go to market, their channels are equally as relevant to us, and they benefit from a tool like ours being able to support their chain because it's something, again, not quarter their business. They're about they care about volume, deposit volume, transaction volume.

And the only way you're gonna get that at scale is through institutional or enterprise level financial workflows. Sure. The biggest question that once the product team out of Fortune five hundred decides, hey, we're going to do this, is okay, finance, how are you gonna handle Right? And that's like the number one priority. So we're a big reason for folks to not say no.

Right? And that's why these type of ecosystems like CAN and Tempo and other blockchains would benefit from allowing us to integrate. Alright. As we close Yeah. Flex a little bit. Flex on them. Yeah. What are some big numbers? I mean, we mentioned a couple of these marquee clients. Yeah. What are some, like, things that are publicly available to share around volumes, numbers, metrics? Like, us a sense of the scope and the gravity of this. Yeah.

I mean, the amount of financial activity we're tracking is in the hundreds of billions at this point, and it's fascinating because it's

due in part to the growth of our customers, not necessarily just, like, us increasing our client base, but it's we work with some monsters. How early were you working with brands? They're, like, pretty much a year into their formation. Yeah. Yeah. And then Braille, same thing. Like, and and so in the last twelve months, our customers have raised a billion in VC, in venture capital. And that's and that's not their seed or pre seed round. This is their series a, b, c. Wow. It's good. And paying their bills. Yeah.

And and our net revenue retention as a result of that as well as they grow and as they trust us with more and more of their accounting. With you guys. Yeah. It's based on the complexity of your business, number of legal entities, number of financial accounts. We we're not a we're we're an enterprise tool. Right? So yeah. And then your token consumption. So, you know, number of agents is a factor in in your bill. For this, Karim. This was fun hanging out here after we're done. Yeah. Of course.

I'll see you around today. Of course. Cool. Alright. Thank you. That was Karim. Yeah. Thanks for joining.