Google uses a new category of amazing search algorithm invented by this startup
Google has been using its own search algorithm since its inception. In fact, Yahoo refused to buy the code this search algorithm for $1 Million when Larry Page and Sergey Brin offered it to them. However, now, Google has added a new category search algorithm made by this startup. In its six-year run in the software market, Seal Software has quietly acquired giant customers like Microsoft, Google, Salesforce, and Aetna.
The new category of software called “contract analysis” invented by Seal Software makes it one of the “most exciting” young enterprise tech companies, says a source close to the company to Business Insider.
Explaining the working of Seal, CEO Ulf Zetterberg tells BI that the company store all of a company’s contracts in a centrally built place and then uses machine learning and AI to search for, understand, and even deduce the terminology that can be understood by the common masses.
The company is not only becoming a secret weapon among huge companies for reducing their legal costs but also a proving point for machine learning technology. It helps companies fight lawsuits, save money with suppliers, and safeguards them from some of the draconian terms that vendors (such as software vendors) like to put into contracts.
In situations where a big software company purchases a smaller company who then raise prices on the acquired customers, this company helps in fighting such increase in prices.
“One of the scary things in the software industry is ‘most favored nation pricing,’ a term that always gives the customer the best pricing,” explains Zetterberg. This is something that a salesperson will normally promise when making the deal, but in the contract “it’s never written in a way that you can easily find it. It is usually hidden in the price provision of the contract.”
Citing examples, Zetterberg says that there were two cases where Seal users prevented a big software vendor from increasing prices after an acquisition by finding out that “favored nation” clause in their original contracts.
Due to its usefulness, even Google is using the product to store, track, and search all of its contracts despite it having its own enterprise search product (Google Search Appliance) and own famous machine learning and AI technology, known as Google Brain.
One person close to the company tells BI that vote of confidence like Google’s is why Seal is “growing like Oracle did in the early days, doubling each year.”
Zetterberg says that Seal Software has been doubling its customer base each year, which had raised $13 million in venture backing. Currently, it has 125 customers, and with the average customer now spending $250,000 to $350,000 annually, each customer has also been doubling how much it spends with the start-up each year, he says.
Seal sells its software via a subscription, which is charged depending on how many contracts are being stored and searched.