# Digital Reasoning Systems

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/digital-reasoning-systems

- Industry: Software
- Headquarters: Franklin, US
- Total disclosed funding: $98M
- Latest round: Series D (Feb 13, 2019)
- Investors on record: 12

## About

Founded in 2000 and headquartered in Franklin, US, Digital Reasoning Systems, Inc. specializes in AI-driven solutions for data analysis. In November 2020, Smarsh, Inc. acquired Digital Reasoning Systems, Inc. Post acquisition, Digital Reasoning was fully absorbed into Smarsh’s product stack.

Digital Reasoning specializes in advanced artificial intelligence and machine learning solutions primarily focused on natural language processing (NLP). Their core offerings enable organizations to analyze and interpret large volumes of unstructured data, thereby extracting actionable insights for various applications, including compliance, risk management, and customer engagement. The company’s flagship technologies are designed to assist sectors such as finance, healthcare, and government in enhancing decision-making processes and improving operational efficiency. Digital Reasoning’s solutions cater to a diverse client base, including major financial institutions and government agencies, primarily targeting markets in North America, Europe, and Asia-Pacific. By providing tools that facilitate deep data analysis, Digital Reasoning aims to address complex challenges related to data security, regulatory compliance, and operational intelligence.
Digital Reasoning generates revenue through a subscription-based model, offering its products and services under various pricing plans tailored to meet the needs of different clients. Clients typically engage in multi-year contracts, which allow for ongoing access to the company’s suite of AI-driven tools and support services. The structure promotes long-term partnerships, ensuring that clients benefit from continuous updates and enhancements to the technology. Revenue is derived primarily from B2B transactions, with financial institutions and government entities being the predominant users of their solutions. Additionally, the company may offer tiered pricing options based on the scale of deployment and specific service levels, allowing customers to select plans that align with their operational requirements.

## Funding rounds

- Series D, Feb 13, 2019 — Macquarie Group
- Series D, Mar 19, 2018, $30M — BNP Paribas Asset Management - Fund of funds, HCA Healthcare, Inc., Nasdaq, Inc., Lemhi Ventures, Goldman Sachs Asset Management, Barclays, Partnership Fund for New York City, Square Capital
- Series D, May 3, 2016, $40M — HCA Healthcare, Inc., Nasdaq, Inc., Lemhi Ventures, Goldman Sachs Asset Management
- Series C, Oct 9, 2014, $24M — Goldman Sachs Asset Management, Partnership Fund for New York City, Nashville Capital Network, NEXT Investors
- Series B, Dec 6, 2011, $4.2M — In-Q-Tel

## Investors

- In-Q-Tel (https://capitalatlas.ai/funds/in-q-tel) — Series B
- Goldman Sachs Asset Management (https://capitalatlas.ai/funds/goldman-sachs-asset-management) — Series C, Series D
- Partnership Fund for New York City (https://capitalatlas.ai/funds/partnership-fund-for-new-york-city) — Series C, Series D
- Nashville Capital Network (https://capitalatlas.ai/funds/nashville-capital-network) — Series C
- NEXT Investors (https://capitalatlas.ai/funds/next-investors) — Series C
- HCA Healthcare, Inc. — Series D
- Nasdaq, Inc. — Series D
- Lemhi Ventures (https://capitalatlas.ai/funds/lemhi-ventures) — Series D
- BNP Paribas Asset Management - Fund of funds (https://capitalatlas.ai/funds/bnp-paribas-asset-management-fund-of-funds) — Series D
- Barclays — Series D
- Square Capital — Series D
- Macquarie Group (https://capitalatlas.ai/funds/macquarie-group) — Series D