Photo - OpenRefactory, Inc.,
50073

OpenRefactory, Inc.,

We fix code automatically

Bangladesh
Market: Internet and IT, Information and media, Computers, office equipment, Artificial Intelligence
Stage of the project: Prototype or product is ready

Date of last change: 01.11.2020
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Idea

OpenRefactory's Intelligent Code Repair(iCR) is an automated "bug fixing" service available as a pay as you go service on the cloud or as a subscription service for private deployment. It automatically synthesizes accurate source code fixes for security, reliability, performance and compliance problems,. It enables software developers to be more productive and software companies to become more efficient by dramatically reducing the time it takes for developers to produce reliable software.

Current Status

Technical Validation using Open Source

* 30+ projects
* 20M+ lines of code analyzed
* 10,000+ fixes created

Commercial Pilots

* 8 Pilots with SMEs from US, India and Bangladesh
* 1 pilot with over 10M LoC – C3.ai

Large Enterprise Partner

* Tata Consultancy Services (TCS) – COIN Partner
* Pilot through TCS – Commonwealth Bank of Australia

Market

The current SAM for bug detection market is $2B. This market primarily targets large enterprises and is estimated to be only one sixth of the TAM. This underserved market contains SMEs. OpenRefactory will target and dominate in this underserved SME-based market.

Problem or Opportunity

Bugs are introduced faster than they can be fixed.

Even released code contains on average 15 bugs per 1,000 lines of code. Current solutions only detect software bugs and cannot tell the developer how to fix them. These solutions have a high proportion of false positives that the engineers must review. This is very time consuming and tedious. As such, the mean time to repair bugs remains 120 days.

Solution (product or service)

OpenRefactory’s Intelligent Code Repair (iCR) is the only solution that detects vulnerabilities and fixes them, automatically. This improves the mean time to repair, improves developer productivity, improves time to market and reduces bug fixing cost.

iCR is now available for fixing problems that are faced by Java developers. iCR is available in two ways.

1. On the cloud as a pay as you go service
2. On premises for organizations that prefer self-managed solutions

Video Demo: https://www.youtube.com/watch?v=c2nVNLgDGJw&feature=youtu.be&ab_channel=OpenRefactoryInc.%2C

Competitors

The Static Application Security Testing (SAST) market is about 20 years old
with the leading providers selling detection-only services. Nobody else offers
reliable code repair. It would require complete redesign of their software to try
to do so. Leading providers include Coverity (Synopsis), Fortify (MicroFocus)
Veracode, AppScan (IBM, now HCL), along with Checkmarx, GrammaTech,
Parasoft and others.

Advantages or differentiators

* Automated tools, from competitors, are available to detect bugs, but they only assist developers who then have to triage and fix the detected bugs manually. This is task is cumbersome and time consuming partly because of the high number of false positives produced by the detection-only services. iCR uses advanced deep analysis combined with machine intelligence and behavior enhancing code-refactoring to provide a service that not only detects bugs with very low false positives, it also rewrites the code to correct the bug. Nobody else can do this.
* SMEs face high overhead to adopt current bug detection solutions because they are short on engineering resources. By providing fixes with very low false warnings, iCR solves the engineering overhead problem.
* iCR does not require an elaborate setup. You can get a cloud instance and start analysis in less than 10 minutes.
* The pricing structure of annual license fee as charged by the detection only services requires large commitment cost. iCR on the cloud is available as a pay as you go service.

Finance

iCR is available in two ways.

1. Cloud service: ($25 per Cloud Machine Hour or CMH)
2. On premise: Yearly license fee per deployment ($15,000 license fee)

2021 Revenue Estimate:
$356K
Cloud Service:
* 130 micro teams (1-10 people), 7 CMH/month = $116K
* 30 small teams (<100 people), 30 CMH/month = $100K
* 10 medium teams (<250 people), 75 CMH/month = $100K
On Premise:
* 2 customers = $50K

Poised for explosive growth after the formative years

Growth will happen as OpenRefactory supports for languages (Pyhton, JS), is available from more platforms (Google Cloud, Azure, etc.,), and has more success stories.

* 17M Java and Python developers estimated across 1M+ companies
* Just by reaching 0.5% of the companies by 2023 (3 years), potential for $40M revenue.
* Cloud deployment should allow us to achieve that and more.

Cost:
Main cost is R&D and product sales and support.

Planned break even is in 3 years.

Business model

To establish technical credibility within the developer community, we have
established ongoing analysis of high-profile open source projects. Our focus is
the underserved SME marketplace that has avoided competitive products due to overhead which is eliminated with iCR. We leverage MWS for easy & rapid
deployment.

We have established a channel partnership with Tata Consultancy Services (TCS) to gain access to their large portfolio of large enterprise customers.

For our cloud service, we are focused on the Cloud Machine Hours (CMH) we will sell each quarter. For the licensing service, we are focused on the number of customers and the average deal size.

Money will be spent on

Phase 1 – Establish Customer Base (3 months)
* Develop Web Marketing Plan to introduce first wave of customers to the
cloud service
* Establish small number of enterprise early adopters
* Offer Free trial period to introduce new customers
* Resources: 8 FT employees + 3 contractors + task specific contractors
(Accounting, Collateral design, Web Design)

Phase 2 – Update Service (3 months)
* Incorporate customer feedback into updated releases of the service
* Enhance collateral material and Website to begin broader customer
outreach
* Resources: Current team plus 2 additional offshore engineers and 1
additional sales support person

Phase 3 – Broad Customer Outreach (9 months)
* Expand web marketing program to pull in 300+ customers
* Develop iCR for Python
* Achieve annualized revenue run rate of $900K+ by end of period
* Resources: Current team plus 7 additional offshore employees, 2 new
domestic engineers and 2 additional sales support engineers

Offer for investor

Total Seeking: $1M
Valuation Expectations: $4.5M pre-money
Type of Financing: Convertible Note; 10% discount, 5% interest

Team or Management

Risks

* Because OpenRefactory is a new company, customers may feel skeptical about allowing their source code to be scanned by iCR
* SME market needs a different price point

Incubation/Acceleration programs accomplishment

* Initially funded by a $225K award from the National Science Foundation (NSF) of USA.
* Participated in the SBIR program organized by the National Science Foundation as a part of the award.
* Created the fundamentals of business model, networked with people to form the team, worked on a prototype implementation.

Won the competition and other awards

* Initially funded by a $225K award from the National Science Foundation (NSF) of USA.
* Background research at the academia funded by over $1.5M in awards from the National Science Foundation (NSF) of USA, the Department of Energy (DoE) of USA, Google, and Microsoft.
* First academic research work on automatically fixing bugs with OpenRefactory infrastructure won the Best student research in all disciplines of computer science awarded by ACM. This was selected through a year long competition and was awarded at the Turing Award ceremony.
* Background work received two best paper awards and one best paper award nomination at top software engineering conferences.

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