Lume, a startup founded by Stanford graduates, has raised a $4.2 million seed round to automate data integration using artificial intelligence. The company's system uses AI and algorithms to extract data from siloed databases and standardize it, making it easier to move and integrate into other workflows.

Lume's platform is designed to tackle complex nested data formats like JSON, allowing companies to map complex arithmetic, taxonomy, and text manipulation tasks. This sets it apart from other data mapping tools that focus on extracting data from spreadsheets or PDFs. According to CEO Nicolas Machado, Lume's focus on complex data formats enables companies to save time and money by automating data projects in-house.

The startup, which went through Y Combinator's W23 batch, has already seen strong inbound demand and has racked up dozens of customers ranging from startups to Fortune 500 companies. Lume plans to use the funding to double its headcount and continue developing its technology. With competition growing in the data integration space, Lume is confident that its algorithms and API will help it stand out.

In the future, Lume hopes to become the glue that facilitates seamless data flow between any two data systems. As Machado puts it, "We all love data, and we're all big believers in how important data is. That metaphor we use, it's like oil, oil, historically, to extract value you have to process it and then use it to power machines, everything else. That's exactly what data is and what data has been."