AI902365

At the forefront of the generative AI space, offering a platform that specializes in legally compliant AI content creation. With deep expertise in media licensing, they provide high-quality datasets and no-code AI model training tools, catering to content creators and large companies that require legally safe and premium AI solutions. Their platform enables clients to generate AI-driven visuals while ensuring full legal clearances, addressing growing concerns around training data compliance.

With $461K in sales and major clients secured, they are seeking $3M in funding to scale their offerings. Positioned in a rapidly expanding AI market projected to reach $2.74 trillion by 2032, the company is primed for further growth. This makes it an excellent investment opportunity, with potential for acquisition or IPO in the next five years as they continue to expand their legally compliant and innovative AI solutions.

Overview

  • Industry: Generative AI for Visual Media
  • Founding Year: 2021
  • Location: USA
  • Mission: To deliver top-tier AI solutions for the visual media industry, collaborating with content creators.
  • Vision: To be the most trusted platform for generative AI, ensuring compliance and protecting content creators' rights.
  • Unique Value Proposition: Applies deep expertise in media licensing to the AI world through datasets, models, and a generative studio that delivers safe and high-quality solutions for brands and companies navigating the uncertain world of generative AI.

Problem & Solution

  • Problem: Most generative AI models rely on scraped data, creating legal risks for brands and companies. Major corporations avoid using models that lack clear biometric and content release forms.

    > Significance: When it comes to privacy, the largest companies in the world (Google, Adobe, Autodesk for example) will not take risks when it comes to using training data that does not contain biometric release forms from the people in the images/video. This means they will pay a premium for datasets and AI models that provide a legal moat.
  • Solution: The company offers a generative AI platform that delivers legally compliant datasets and AI models, ensuring brands can use these tools without legal concerns. Their platform allows users to train AI models and generate content safely, with a no-code interface for ease of use.

Market Potential

  • Target Market: Content creators (semi-professional and professional), talent agencies, large corporations training AI models.
  • Market Size:

    TAM: $500B
    SAM: $20B
    SOM: $2B
  • Growth Rate: The global artificial intelligence (AI) market size was valued at USD 515.31 billion in 2023 and is projected to grow from USD 621.19 billion in 2024 to USD 2,740.46 billion by 2032, exhibiting a CAGR of 20.4% during the forecast period.
  • Trends:

    EU AI Act and various legal court cases led to an industry more aware of compliance issues with training data.

    Adoption of AI into the workspace. Concerns over the legal status of the models and negative backlash from consumers.
  • Customer Segments:

    Influencers/Talent agencies - people generating large amounts of content.
    Adverting - in-house and agency professionals wanting to speed up content production with safety.
    Large companies training LLMs seeking clean data.

Product / Service

  • Core Features:

    Generative AI platform with legally-cleared datasets.
    No-code AI model builder.
    Marketplace for datasets and AI models.
  • Technology: Uses advanced models like Stable Diffusion, custom biometric tagging, and Google Cloud infrastructure.
  • IP: Registered trademark, Datasets of proprietary images (earned over $500K to date), Custom-developed content licensing platform
  • Stage: Launched, with early sales and proprietary datasets earning $461K.
  • Upcoming Features:

    Datasets for sale through own platform (Q4 2024 complete)
    Video generation (Q2 2025 complete)
    AI agents and text generation (Q4 2025 complete)

Business Model

  • Revenue Streams:

    Subscription-based platform: $9–$499 per month
    Dataset sales: $40–$150 per identity (unique individual)
    AI model sales with a 50% revenue share
  • Customer Acquisition & Retention: The company's customer acquisition strategy focuses on growth marketing tactics such as affiliate programs, LinkedIn lead generation, influencer partnerships, social media advertising, and SEO/SEM. For retention, they prioritize delivering high-quality results from trained models and ensuring that users, particularly micro-producers, can earn revenue from their models. Additionally, they improve platform usability through features like social sharing to increase user engagement and loyalty.

Financials

  • Revenue:

    2023: $212K
    2024 (projected): $482K at current level of funding
    5-Year Projection: $46.3M
  • Key Metrics:

    Generative Platform
    Customer Acquisition Cost (CAC): $100
    Lifetime Value (LTV):
    $400
    Gross Margin:
    $300
    Net Profit Margin:
    50%

    Dataset Sales
    Customer Acquisition Cost (CAC):
    $10,000
    Lifetime Value (LTV):
    $250,000
    Gross Margin:
    $240,000
    Net Profit Margin:
    50%
  • Burn Rate: $25K/month with minimum salaries for founders
  • Funding to Date: $725K from angel investors
  • Use of Funds:

    Captured largest biometric dataset of humans (generating $461k in sales)
    Built a dataset marketplace site
    Built generative AI platform
  • Current Runway: 6-8 months, depending on revenue
  • Seeking: $3M to expand development, marketing, and hiring.

Team

  • Expertise: The team is composed of highly experienced industry veterans with deep expertise in their respective fields. With decades of success in business development, content creation, and global media operations, they bring an unparalleled level of knowledge and proven track records to the company. Their extensive backgrounds in licensing, 3D art, photography, and strategic management give investors high confidence in their ability to drive innovation, scale operations, and navigate the rapidly growing AI and media landscape. This seasoned leadership positions the company for long-term success and market dominance.

    CEO: With nearly two decades of IP licensing experience, combined with a portfolio over over 40.000 images and 12.000 footage clips, he has sold over 500.000 media licenses & participated in numerous design and online marketing projects.

    VP of Business Development: An experienced content operations specialist, he founded one of Eastern Europe's first online photo agency and a leading media solutions company. His expertise in the global content and licensed stock media landscape brings unique insights to the company, providing a strong foundation for navigating complex content licensing challenges.

    Head of Content: A highly accomplished 3D artist, photographer, and designer, he has sold over 2 million licenses through his studio, which is recognized as a leading stock agency in Latin America. His expertise in visual content creation and licensing plays a pivotal role in the company’s success in the global media landscape.

    CFO: A business development specialist with over 33 years of experience, he has a proven track record of success in sales, marketing, and strategic management at major global companies. His expertise spans multiple industries, making him a valuable asset in driving growth and expanding market reach.

Competitive Landscape

  • Competitors: Competitors excel in generating impressive outputs due to models trained on scraped data, like MidJourney and Stable Diffusion. However, this reliance on unlicensed data exposes them to significant legal risks, as seen in the lawsuits against OpenAI and Stability.ai. Additionally, their technology often lacks the sophistication of the company's platform, which offers superior model training and photorealistic results. This legal vulnerability and technical inferiority present significant weaknesses for competitors compared to the company's legally compliant and high-quality solutions.

    Direct: MidJourney, Stability AI (scraped datasets, legally risky).
    Indirect: Adobe, Canva (integrated avatar generation).
  • Competitive Advantage: The company's platform offers photorealistic results using advanced technology for high reproducibility. Its competitive advantage lies in established relationships with large clients, a strong reputation for providing legally compliant data, and connections with influencers and real-life models eager to adopt AI as a revenue stream. These factors create significant barriers to entry for competitors, positioning the company as a leader in delivering clean, high-quality AI-driven visual content.

Traction

  • Key Metrics:

    15 high-profile clients, with an average sale of $50K.
    Major partnerships with Google Startups, Canva, and more.

Risks & Mitigation

  • Risks:

    ‍Competition from tech giants.
    ‍Funding gaps slowing growth.
    ‍Regulatory changes around AI models.
  • Mitigation: Continue promoting legally trained AI models and expand partnerships with large tech firms.

Funding Requirements

  • Amount Sought: $3M
  • Runway Post-Funding: 12 months
  • Use of Funds: Product development, marketing, hiring for growth marketing, customer support, and software development.
  • Previous Funding Rounds:

    Amount Raised: $725K pre-seed
    Investors: Angels SAFE notes
    Valuation: $9mil / 20% discount

Exit Strategy

  • IPO: Has potential to IPO in 5 years.
  • Potential Buyers: Canva, Adobe, Shutterstock.
  • Timeline: Targeting acquisition or IPO within five years.

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