Authors A.I.

Authors A.I.

Early Stage

Creative Storytelling & Book Discovery – Powered by AI

Creative Storytelling & Book Discovery – Powered by AI

Overview

Raised to Date: Raised: $173,082

Total Commitments ($USD)

Platform

StartEngine

Start Date

04/30/2024

Close Date

07/31/2024

Min. Goal
$15,000
Max. Goal
$1,200,000
Min. Investment

$250

Security Type

Equity - Common

Series

Pre-Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.00

Pre-Money Valuation

$8,685,445

Rolling Commitments ($USD)

Status

Active

Reporting Date

05/15/2024

Days Remaining

76

% of Min. Goal

1,154%

% of Max. Goal

14%

Likelihood of Max
possible
Avg. Daily Raise

$11,539

# of Investors

159

Momentum
warm.svg
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Year Founded

2019

Industry

Business Services, Software, & Applications

Tech Sector

EnterpriseTech

Distribution Model

B2B/B2C

Margin

High

Capital Intensity

Low

Location

Orlando, Florida

Business Type

High Growth

Authors A.I., with a valuation of $8.69 million, is raising funds on StartEngine. The company has developed an artificial intelligence platform for fiction analysis and book recommendations. Authors A.I.’s platform, Marlowe, keeps authors at the center of the book-writing process and provides AI-assisted editing by analyzing fictional narratives written by real people. The platform offers several benefits to publishers and retailers and aims to target streaming media, filmmaking, and podcasting soon. Alessandra Torre and JD Lasica founded Authors A.I. in November 2019. The current crowdfunding campaign has a minimum target of $15,000 and a maximum target of $1.2 million. The campaign proceeds will be used for staffing, development, and marketing.

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$85,217

$59,619

COGS

$0

$44

Tax

$0

$0

 

 

Net Income

$24,222

$-25,681

Summary Balance Sheet

FY 2023 FY 2022

Cash

$64,690

$40,468

Accounts Receivable

$0

$0

Total Assets

$64,690

$40,468

Short-Term Debt

$0

$0

Long-Term Debt

$0

$0

Total Liabilities

$0

$0

Financials as of: 04/30/2024
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Analyst Report

Synopsis

Authors A.I. emerges as a pioneering force in the rapidly evolving publishing landscape, leveraging artificial intelligence's power to transform how stories are told, analyzed, and discovered. Founded by Alessandra Torre and JD Lasica in November 2019, Authors A.I. has developed Marlowe, an advanced AI platform designed to assist authors in fiction writing. Marlowe stands out by offering AI-assisted editing services that analyze fictional narratives crafted by real people, providing valuable insights and recommendations while keeping the author firmly at the heart of the creative process.

Authors A.I. is not just another tech company; it is a profitable entity that seeks to empower authors rather than replace them. By utilizing a rights-cleared corpus, Marlowe provides feedback on narrative structure, pacing, character development, and more, enhancing the quality of manuscripts and increasing their potential for success. This innovative approach has positioned Authors A.I. as a global AI text generator market leader, catering to a wide range of users from individual authors to publishers and retailers. Furthermore, the company has ambitious plans to expand its offerings to streaming media, filmmaking, and podcasting, signaling its intent to revolutionize content creation across multiple platforms.

With a valuation of $8.69 million, Authors A.I. is raising funds on StartEngine to fuel its next growth phase. The proceeds from this crowdfunding campaign, which aims to raise between $15,000 and $1.2 million, will be allocated towards staffing, development, and marketing efforts. This strategic investment in its resources underscores Authors A.I.'s commitment to scaling its operations and enhancing its platform to meet the evolving needs of the creative industry. As it transitions from an early stage to a high-growth business, Authors A.I. represents a compelling opportunity for investors looking to support the intersection of technology and creativity.

Next Section: Price

Price

Authors A.I. is embarking on a fundraising journey through StartEngine. With a pre-money valuation of $8.69 million, it is offering equity at $1.00 per share.

Given the company's revenue multiple of 101.92x, it's evident that investors are being asked to pay a premium based on future growth expectations rather than current financials. This high revenue multiple suggests that Authors A.I. is valued more on its potential to disrupt the traditional publishing industry and its applicability to streaming media, filmmaking, and podcasting than its present financial performance. 

Next Section: Market

Market

Authors A.I. has positioned itself uniquely in the intersection of artificial intelligence and creative writing, explicitly targeting the niche of fiction analysis and book recommendations. With its AI platform, Marlowe, the company stands at the forefront of leveraging AI to benefit authors, publishers, and potentially broader content creators, including those in streaming media, filmmaking, and podcasting. The global AI Text Generator market, which Marlowe is a part of, is valued at $382 million and is experiencing a compound annual growth rate (CAGR) of 17.3%. This demonstrates a rapidly growing interest and investment in AI-driven content generation and analysis technologies.

Despite being described as a very small market, the AI text generator sector is witnessing significant growth fueled by the increasing adoption of AI technologies across various industries. Authors A.I. operates in a slightly competitive landscape with key players such as Squibler, ProWritingAid, and Rytr. These competitors offer various writing assistance tools, from grammar correction to content generation, indicating a crowded space for tools to facilitate the writing process. However, Authors A.I. distinguishes itself by focusing on fiction analysis, aiming to provide deeper insights and recommendations beyond mere grammar or style improvements.

The high market acceptance of AI in creative processes, coupled with a low capital intensity level for entering the AI software market, presents a favorable scenario for Authors A.I. The company operates with a recurring revenue model, which is advantageous in building a stable, long-term customer base. This is particularly relevant in the creative industries, where ongoing support and updates can significantly enhance the user experience and product value.

While the company acknowledges the market size to be relatively small, the high growth rate of the AI text generator market suggests expanding opportunities. As AI technology continues to evolve, the potential applications within creative writing and beyond will likely increase, opening up new avenues for growth and expansion for Authors A.I. The company's plans to target streaming media, filmmaking, and podcasting indicate a strategic vision to leverage its technology beyond the initial focus on authors and publishers, potentially tapping into larger, more lucrative markets.

Next Section: Team

Team

Authors A.I. is led by a dynamic duo, CEO Alessandra Torre and JD Lasica, who bring a unique blend of entrepreneurial spirit, authorship, and technological insight to the company. Torre, a bestselling suspense author and founder of the annual Inkers Con conference for indie authors, combines her literary success with an entrepreneurial mindset, positioning her well to understand the needs and challenges of Authors A.I.'s target market. Her leadership is complemented by JD Lasica, who serves as COO. Lasica's background as a serial entrepreneur, bestselling thriller author, and guest speaker at prestigious forums such as the United Nations, Harvard, Stanford, MIT, SXSW, and Cannes adds a layer of business acumen and industry credibility to the team.

Next Section: Differentiation

Differentiation

Authors A.I. distinguishes itself in the crowded text generation and editing software field through its specialized artificial intelligence platform, Marlowe, which focuses on fiction analysis and book recommendations. While there are indirect competitors in the broader AI writing assistance space, such as ChatGPT and Grammarly, Authors A.I. targets a niche market by offering AI-assisted editing designed explicitly for analyzing fictional narratives. This focus on fiction sets it apart from general-purpose writing tools and caters to a specific audience of authors, publishers, and, eventually, streaming media, filmmaking, and podcasting sectors.

Despite operating in a market with established competitors like Squibler, ProWritingAid, and Rytr, Authors A.I. has managed to carve out a unique value proposition by keeping authors at the center of the book-writing process. Unlike its competitors, which primarily focus on grammar correction or content generation, Marlowe provides in-depth analysis of narrative structures, character development, and plot pacing, among other elements critical to fiction writing. This specialized approach not only aids in the editing process but also empowers authors with insights that are typically accessible only through professional human editors.

Furthermore, Authors A.I. has reached a profitable stage, successfully adopting and validating its business model and product offering in the marketplace. This achievement is notable in a landscape where many AI-driven platforms struggle to monetize effectively or prove long-term viability. The company's focus on a recurring revenue model suggests a commitment to building lasting relationships with its users, providing continuous value through its platform's evolving capabilities.

However, the company faces challenges, including low barriers to entry in the tech and AI sectors, which could lead to increased competition over time. Additionally, the lack of patents could make it challenging to protect its proprietary technology from being replicated by competitors. Despite these challenges, Authors A.I.'s unique focus on fiction analysis and the demonstrated profitability of its platform position it as a distinctive player in the AI-assisted writing market.

Next Section: Performance

Performance

Authors A.I., despite its relatively recent entry into the market, has demonstrated a unique value proposition through its AI-assisted editing platform, Marlowe. This platform, designed to support authors by providing detailed fiction analysis and book recommendations, signifies a notable advancement in the use of AI within the literary world. The company has successfully transitioned to a profitable phase within a short period, indicating efficient operational management and a strong product-market fit.

With an annual revenue of $85,217 and a reported revenue growth of 42.90%, Authors A.I. is on a positive trajectory. However, it's important to note that the revenue growth, while significant, is too small. At this stage, the company's revenue should be growing faster. It highlights potential challenges in scaling the business or capturing a larger market share within the global AI text generator market.

The company's current cash on hand of $60,000, against a monthly burn rate of $7,872, suggests a runway of approximately 7.5 months, assuming no additional revenue or capital infusion. However, without further financial planning, this could pose a risk to its continued operations.

Next Section: Risk

Risk

While operating in a niche market with its AI platform Marlowe for fiction analysis and book recommendations, authors A.I. face several risks that potential investors should consider carefully. The competitive landscape within the AI text generator and editing industry is a primary concern. With direct competitors like Squibler, ProWritingAid, and Rytr, Authors A.I. must continuously innovate and improve its offerings to maintain and grow its market share. The slightly competitive nature of this market means there's constant pressure to enhance features, user experience, and overall value to users.

The company's lack of patents presents another risk. In the rapidly evolving tech industry, especially within AI, intellectual property (IP) protection is crucial. Without patents, Authors A.I. is at risk of competitors replicating its technology or aspects of its service, which could impact its competitive advantage and market position.

Despite showing profitability and a significant annual revenue growth of 42.90%, Authors A.I.'s relatively low barriers to entry for new competitors could threaten its market position. The tech sector, particularly software, can see quick shifts in market leader positions as new entrants introduce innovative products or services. Authors A.I.'s future growth could be hampered if it fails to address these potential competitive threats adequately.

Lastly, the company's product risk is associated with the launch phase of its software. As Authors A.I. seeks to expand its platform's applications to streaming media, filmmaking, and podcasting, the risk of market acceptance and technical feasibility increases. Expansion into new markets requires significant market research, product development, and marketing efforts to ensure success. Failure in these areas could negatively affect the company's profitability and growth prospects.

Next Section: Bullish Outlook

Bullish Outlook

Authors A.I. is uniquely positioned to revolutionize the publishing industry through its advanced AI platform, Marlowe, which has shown significant promise in transforming how authors write and publishers select manuscripts. The company's focus on AI-assisted editing and fiction analysis taps into a burgeoning digital content creation and consumption market, offering an innovative solution that blends creative storytelling with cutting-edge technology. This positions Authors A.I. at the cusp of a significant shift in content creation, with a unique value proposition for authors, publishers, and, eventually, the broader entertainment industry.

The company's profitability in its early stage strongly indicates its business model's viability and the high demand for its services. With an annual revenue growth of 42.90% and maintaining a high margin level, Authors A.I. demonstrates not only the appeal of its AI platform, Marlowe but also its ability to scale efficiently. This is particularly impressive in the competitive landscape of business services, software, and applications, highlighting the platform's unique capabilities and the management team's execution prowess.

Furthermore, Authors A.I.'s plans to expand its offerings to streaming media, filmmaking, and podcasting represent a significant growth opportunity. The global appetite for content across these mediums is increasing, and Authors A.I.'s technology can provide critical insights and efficiencies in content creation processes. This expansion could open new revenue streams and partnerships, further accelerating the company's growth trajectory.

The leadership team, including founders with a track record of success and expertise in both the technical and creative aspects of storytelling, adds a layer of confidence in the company's future. Their vision for leveraging AI to empower authors and enhance the creative process is innovative and timely as the industry seeks more efficient ways to produce compelling content.

Next Section: Bearish Outlook

Bearish Outlook

While Authors A.I. has successfully entered the market with its innovative artificial intelligence platform, Marlowe, for fiction analysis and book recommendations, there are several bearish indicators that potential investors should consider. Despite the company's profitability and an impressive annual revenue growth of 42.90%, several aspects suggest caution is warranted.

Firstly, the valuation of $8.69 million against an annual revenue of just $85,217.00 represents a revenue multiple of 101.92, which appears exceedingly high. This lofty valuation raises questions about the sustainability of its market cap in the competitive landscape of AI text generators and editing software. This sector is not only growing but also attracting a lot of attention, which can lead to rapid shifts in market leader positions and technological advantages.

Additionally, Authors A.I. operates in a market with low barriers to entry, as indicated by the presence of direct competitors such as Squibler, ProWritingAid, and Rytr. The lack of patents for its technology further exacerbates this, leaving Authors A.I. vulnerable to new entrants who can easily replicate or improve their AI-driven solutions. This scenario could erode the company's competitive edge and market share.

Another point of concern is the company's cash position. With just $60,000 in cash on hand and a monthly burn rate of $7,872, there seems to be a limited runway without additional fundraising or a significant increase in revenue. While the company is currently profitable, the high growth ambitions outlined, including targeting streaming media, filmmaking, and podcasting, will likely require substantial staffing, development, and marketing investments. This could strain the company's financial resources if not managed meticulously.

Lastly, the lack of founders' dedication, as stated, raises questions regarding the long-term strategic direction and leadership stability of Authors A.I. Leadership commitment is often a critical factor in the success and resilience of early-stage companies, particularly in the highly dynamic and competitive tech landscape.

In conclusion, while Authors A.I. presents an intriguing proposition with its AI-powered platform for the literary market, the combination of its high valuation, competitive and easily accessible market, modest cash reserves, and questions regarding leadership dedication present significant risks. Investors should weigh these factors carefully against the company's potential for growth and market disruption.

Next Section: Executive Summary

Executive Summary

Authors A.I., a trailblazer in the intersection of artificial intelligence and creative writing, has developed Marlowe, an advanced AI platform designed to revolutionize the process of fiction analysis and book recommendations. Founded by Alessandra Torre and JD Lasica in November 2019, the company has quickly positioned itself as a key player in the business services, software, and applications industry, specifically targeting the burgeoning market for AI text generators. With a focus on empowering authors and enhancing the storytelling process, Marlowe offers AI-assisted editing capabilities by analyzing fictional narratives, thereby providing invaluable insights to authors, publishers, and retailers alike.

Despite its relatively recent entry into the market, Authors A.I. has achieved profitability, showcasing a remarkable annual revenue growth of 42.90%, with the latest fiscal year-end revenue reported at $85,217. This growth trajectory is supported by a modest monthly burn rate of $7,872, indicating a sustainable business model with high margins. The company's commitment to innovation and development is evident in its plans to expand its offerings to streaming media, filmmaking, and podcasting, highlighting the versatility and potential of the Marlowe platform.

Operating in a slightly competitive landscape, Authors A.I. distinguishes itself through its unique value proposition that places authors at the center of the book-writing process, leveraging AI to complement rather than displace human creativity. The company faces low barriers to entry in the global AI text generator market. It is a factor that, combined with its innovative approach and dedicated founding team, positions it for continued growth and expansion.

With a pre-money valuation of $8.69 million, Authors A.I. is raising funds on StartEngine to secure between $15,000 and $1.2 million. The proceeds from this crowdfunding campaign are earmarked for staffing, development, and marketing efforts, underscoring the company's commitment to scaling its operations and enhancing its product offerings. As Authors A.I. continues to navigate the early stages of its growth, its strategic focus on leveraging AI for creative storytelling and book discovery presents a compelling opportunity for investors looking to participate in the intersection of technology and creativity.

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Authors A.I. on StartEngine 2024
Platform: StartEngine
Security Type: Equity - Common
Valuation: $8,685,445
Price per Share: $1.00

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