A Bold New Chapter in AI Software
Ben Peters, a pioneering figure in autonomous vehicle technology, is setting out to tackle a new challenge: AI-driven enterprise software. His startup, Cogna, recently raised $15 million in a Series A funding round led by Notion Capital, with contributions from Hoxton Ventures and Chalfen Ventures.
This fresh capital follows an initial seed round of $4.75 million in early 2024, bringing Cogna’s total funding to nearly $20 million within its first year of existence.
Cogna’s mission is ambitious: the U.K.-based startup aims to create AI that can build custom enterprise resource planning (ERP) software tailored to each client’s unique workflow.
This disruptive approach, if successful, could change how companies manage essential operations like inventory, supply chains, finances, and human resources.
The company has already attracted prominent clients, including Cadent Gas, a major gas distributor, and Network Plus, an infrastructure service provider.
What is ERP and Why Does It Matter?
ERP, or Enterprise Resource Planning, might not be the most exciting part of a business, but it’s essential. Think of it as the digital backbone of an organization. ERP systems help manage core processes like procurement, inventory, finances, and HR — all in one place.
Traditionally, ERP systems have been cumbersome and expensive, often requiring companies to hire consultants or developers to tailor them. Large companies sometimes spend billions over time to maintain these systems.
But what if there was a faster, more adaptable way to build ERP software? That’s where Cogna steps in, aiming to simplify and accelerate the process with AI.
Rather than relying on pre-built systems like SAP, Cogna’s technology generates custom software that meets specific needs without the lengthy setup.
An AI That Builds, Not Just Suggests
One of Cogna’s most exciting promises is its ability to deliver software that feels custom-built for each client. According to Peters, Cogna uses a unique blend of generative AI and domain-specific tools to create ERP systems that companies can interact with naturally.
For instance, non-technical teams can simply describe their needs, and Cogna’s platform translates those requirements into a working application.
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Peters explained, “Our clients don’t think of it as ERP software. They come to us with a problem SAP can’t solve, and we provide a custom piece of software that looks and feels like a traditional SaaS application but is tailored to their workflow. And yes, it’s written by our AI.”
Cogna’s system is a mix of various large language models (LLMs) from providers like OpenAI and Anthropic. These LLMs power a feature called the “Natural Language Compiler,” which enables the software to interpret user requests and generate the necessary code.
Hussein Kanji, co-founder of Hoxton Ventures, believes this technology could fundamentally change how software is built. “Cogna’s software can practically write itself,” he noted.
AI in Enterprise: The Bigger Picture
Cogna’s approach is part of a larger trend where AI technology moves beyond consumer apps like ChatGPT and into more complex, high-stakes environments. The enterprise sector, particularly in fields like ERP, is a vast and lucrative market.
OpenAI and other foundational AI companies are also eager to capitalize on this, but smaller players like Cogna are carving out a niche by offering highly customized solutions.
This rise in AI-driven ERP tools has sparked excitement among investors. In fact, Cogna’s approach has drawn comparisons to Anysphere, a company backed by OpenAI that specializes in AI-powered coding tools.
Anysphere recently attracted significant investor interest, reaching a valuation of $2.5 billion, highlighting the growing demand for AI solutions in software development.
A Vision Forged in Self-Driving Tech
Ben Peters isn’t new to breakthrough tech. Before Cogna, he co-founded FiveAI, a startup that developed autonomous driving technology. FiveAI’s journey included major milestones: deploying self-driving cars in London in 2018, before pivoting to provide development environments for other autonomous vehicle companies.
This experience taught Peters valuable lessons in adaptation and resilience, skills that he’s now applying to Cogna. Reflecting on his past, Peters shared, “In 2018, we had self-driving cars navigating London streets.
But we quickly realized the market was shifting, so we adapted to meet new needs. Now, with Cogna, we’re poised to bring that same flexibility to enterprise software.”
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Challenges Ahead: Competing with Giants
Cogna isn’t just taking on traditional software providers; it’s also setting its sights on global IT consulting giants like Wipro and CapGemini. These companies have long dominated the ERP customization space, often working with massive teams to deliver tailored solutions.
But Cogna believes its AI-driven approach can provide a quicker, more adaptable alternative. While traditional ERP systems have a reputation for being slow and rigid, Cogna’s AI platform offers agility and responsiveness.
Instead of months-long implementations, companies could potentially get tailored software within weeks, with the AI continuously adapting to their needs.
What’s Next for Cogna?
With the new funding, Cogna plans to expand its engineering team and further develop its platform. The Series A round is also the first investment led by Bryan Gartner, a former partner at Khosla Ventures who joined Hoxton Ventures last year.
Gartner brings a wealth of experience in scaling tech startups and sees significant potential in Cogna’s approach to ERP. In the coming months, Cogna aims to onboard new clients, refine its technology, and position itself as a leader in AI-driven ERP solutions.
The company’s success could encourage more organizations to embrace AI-powered customization, making Cogna a name to watch in enterprise software.
Cogna’s Key Features vs. Traditional ERP Solutions
| Feature | Cogna’s AI ERP | Traditional ERP |
| Customization Speed | Weeks | Months to Years |
| Flexibility | High | Moderate |
| Human Resource Requirement | Minimal | Extensive |
| Cost Efficiency | Cost-effective | Expensive |
| User-Friendliness | High (SaaS feel) | Varies |
Is Cogna the Future of Enterprise Software?
As companies look for smarter, faster ways to manage complex operations, AI-driven ERP systems like Cogna’s could be the solution they’ve been waiting for.
By making enterprise software more accessible, Cogna could empower businesses to adapt quickly, stay competitive, and thrive in a technology-driven world.
