Verses Technologies: Building the Defining A.I. Platform of a Generation

VERSES A.I. Platform Innovating Industries

Innovation doesn’t stop just because we’re in a recession or a depression.

In fact, quite the opposite is true.  Down markets are the fertile breeding grounds of the next cycle’s big winners.

Tesla, Uber, Google, AirBnB and Instagram were all birthed in the wake of significant market drawdowns.  All incredible businesses that have created tremendous value.

Fortunes are made in the down market and collected in the up market.  The real opportunity right now is to find out which companies to get behind this time around. 

This doesn’t happen by accident or coincidence by the way.  It’s a structural consequence.

In frothy markets all sorts of bad ideas get funded.  Big tech firms are flush with cash and soak up all the talent.

Now we will start to see the consolidation of talent behind the winning ideas.  This is the best time to be building a GOOD company.

Verses Technologies Inc. (NEO: VERS; OTCQX: VRSSF) is a good example of a team and product capable of raising a large amount of money in the trough of a down market.

Verses recently closed an oversubscribed, $14.9M CAD financing while other companies in need of cash struggled to raise anything at all.

Couple this fact with Verses’ major success in turning their first pilot program into a large contract in the supply chain industry and it’s clear Verses is worth a closer look in the eyes of opportunistic microcap investors.

Verses’ First Pilot Program Yields 8-Figure Contract

At its core, VERSES is an artificial intelligence platform.

This means it is capable of ingesting large amounts of information – both static and dynamic – and then optimizing processes for efficiency gains.

There is no shortage of industries to pursue efficiency gains across.  This speaks to how far reaching and deeply integrated Verses’ platform can become.

Verses’ first application is targeted at a critical link in the supply chain – Warehouses.

Verses built the Wayfinder app for their first client NRI, a warehouse chain.

Watyfinder started as a pilot program for one of NRI’s 15+ warehouses.  After NRI saw 30 – 50% efficiency gains with the pilot program they signed an 8-figure multiyear contract and rolled out Wayfinder across all of their locations.

To put this into perspective, many industries will often adopt a new technology for single-digit efficiency gains.

Just how valuable are those efficiency gains to NRI’s bottom line?  It’s worth at least several million dollars a year:

The addressable market for just this first application from Verses – Wayfinder – is over 90% of warehouses operating today.  

At present Verses has another half-dozen paid pilot programs underway.  Each with the potential of turning into 7 or 8 figure contracts.

The potential for rapid revenue growth is very big and very real.  

Verses Quickly Attracting Top Supply Chain Industry Veteran Talent

Verses’ founders Dan Mapes and Gabriel Rene quite literally wrote the book on The Spatial Web back in 2019.  In it they detail how web 3.0 will leverage A.I. to transform the world.

Verses aims first to disrupt the supply chain industries with their A.I. platform.  This is the point of market entry for the A.I. platform.  And it makes a lot of sense – the supply chain consists of sprawling data points and has a vast number of moving yet connected parts.  Exactly the kind of problems that are difficult for human intelligence to optimize but are much more tractable when turned over to A.I..

What’s particularly impressive and promising is how quickly and resoundingly supply chain veterans got behind the project.

Jay Samit has recently joined the team as chairman of Verses’ Board of Directors.

“Samit provides disruptive solutions for such corporate clients as Adobe, Amazon, American Express, AT&T, Best Buy, Coca Cola, Disney, Facebook, Ford, GE, Google, IBM, Intel, McDonalds, Microsoft, Proctor & Gamble, Starbucks, Unilever, Visa, and dozens more.”

Samit is also the former independent vice-chairman of Deloitte Consulting.

Verses has also recently partnered with Tompkins Ventures – founded by Jim Tompkins.

Tompkins founded and  has been leading a top supply chain consulting firm for nearly 50 years.

Both of these gentlemen are longstanding supply chain veterans who are sought after consultants by supply chain operators.  They are the guys industry operators seek out for advice when looking for operational efficiency improvements.

In short, having their endorsement not only validates supply chain market fit for Verses but it also provides quick in-roads connecting Verses’ solutions to the companies that can benefit from them most.

Verses’ Potential for Near-Term Multibagger Rerating

In the space of microcap investments our general rule of thumb is to look for companies that can 5x in 5 years.  Verses certainly has the potential to make that leap and more.  Rapidly.

The sheer size of their contracts is compelling on its own.  On top of that they have several pilots ongoing as well as new partners and board members to connect them to many more potential clients.

And that’s only considering what they can do currently with their warehouse supply chain application, Wayfinder.  

It is hard to overstate just how big of an opportunity Verses has here.  They have just completed a large raise from smart money in a very tough market.  Verses has attracted top tier talent and won very large contracts while having several more pilots currently ongoing. 

All of this is happening in the very first sector of industry in which they are applying their technology.

I’ll be following Verses closely and looking to add to my position each time they ink a new deal and each time they step out to apply their technology at another link in the supply chain.  There is good potential for Verses revenues to grow quite fast with 7 and 8 figure contracts on the horizon.

With current market conditions being shaky it is important to take intelligent risks. Gauged properly, the investments that one makes in this period should yield the best results for many years to come because they have the most asymmetric upside.  

Bill McClain – Editor of The Momentum Letter
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