Momento Labs

Momento Labs

Early Stage

The AI cloning & monetization platform

The AI cloning & monetization platform

Overview

Raised to Date: Raised: $152,660

Total Commitments ($USD)

Platform

StartEngine

Start Date

08/22/2023

Close Date

11/22/2023

Min. Goal
$15,000
Max. Goal
$1,234,999
Min. Investment

$199

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$2.40

Pre-Money Valuation

$29,990,000

Rolling Commitments ($USD)

Status
Funded
Reporting Date

11/29/2023

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$1,678

# of Investors

153

Momentum
Funded
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Year Founded

2021

Industry

Business Services, Software, & Applications

Tech Sector

EnterpriseTech

Distribution Model

B2B/B2C

Margin

Low

Capital Intensity

Low

Location

New York, New York

Business Type

High Growth

Momento Labs, with a valuation of $29.99 million, is raising funds on StartEngine. It is an AI cloning platform that enables users to create and monetize AI clones. Momento Labs emphasizes on best-in-class user experience and makes AI cloning accessible to all with its streamlined process. The platform has over 78,000 users in its private beta and more than $1 million in paid partnerships and celebrity content. Momento Labs has over 12,000 creators on its waitlist and has reported a 52% month-over-month revenue growth. Julian Rodriguez founded Momento Labs in June 2021. The current crowdfunding campaign has a minimum target of $15,000 and a maximum target of $1.23 million. The campaign proceeds will be used for research and development, marketing, company employment, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$154,892

$0

COGS

$196,321

$0

Tax

$0

$0

 

 

Net Income

$-3,572,397

$-227,870

Summary Balance Sheet

FY 2022 FY 2021

Cash

$591,371

$310,721

Accounts Receivable

$12,688

$0

Total Assets

$796,530

$310,877

Short-Term Debt

$25,747

$0

Long-Term Debt

$0

$538,667

Total Liabilities

$25,747

$538,667

Financials as of: 08/22/2023
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Analyst Report

Synopsis

Momento Labs is a company that operates in the chatbot market, offering an AI cloning platform that allows users to create and monetize AI clones. The platform emphasizes on providing a  many-in-class user experience and making AI cloning accessible to all users. 

AI cloning is a rapidly growing field with significant potential for a wide range of applications. It can be used to create realistic digital assistants, customer service representatives, and even digital influencers. The ability to clone a person's voice or personality can make interactions with AI more personal and engaging, increasing user satisfaction and engagement.

The company's growth figures are impressive, with a 52% month-over-month revenue growth and over 12,000 creators on its waitlist. This suggests strong demand for the company's services and its potential for future growth. The company has also attracted investment from notable investors including Mark Pincus, Ripple, Animoca, and Hard Yaka, further validating its business model and growth potential.

The funds raised in the current crowdfunding campaign will be used for research and development, marketing, company employment, and working capital. These investments will help Momento Labs further develop its platform, attract more users, and continue its rapid growth.

Next Section: Price

Price

Momento Labs is offering equity at a valuation of $29.99 million. This valuation is based on the company's revenue multiple of 193.62, which is significantly higher than industry averages for software and AI companies. While Momento Labs has shown promising growth with a 52% month-over-month revenue increase, the valuation seems inflated. The company's annual revenue is relatively low at $154,892, and its margin level is also low. Additionally, Momento Labs is still in the early stage of development and has not yet achieved profitability. Investors should cautiously approach this valuation with caution and carefully consider the potential for returns on their investment.

Next Section: Market

Market

The US chatbot market, the primary addressable market for Momento Labs, is valued at $1.998 billion, with a high growth rate of 24% per annum. The growth owes much to the increasing adoption of chatbot services across various businesses and the ever-growing user expectation for instant responses. Momento Labs operates in this expanding market with a unique approach, emphasizing the creation and monetization of AI clones for creators and influencers.

The landscape appears slightly competitive, with top direct competitors including Character AI, Inflection AI, and Personal.ai. However, the market acceptance for AI cloning is relatively low, indicating a largely untapped market. This low market acceptance might be attributed to factors such as lack of awareness, mistrust in AI technologies, or concerns over ethical implications. As AI technologies evolve and gain trust, market acceptance is expected to grow, offering greater opportunities for Momento Labs.

While inherent challenges exist due to the nascent stage of AI cloning, the growth potential is high. With its focus on best-in-class user experience and a streamlined cloning process, Momento Labs is well-positioned to tap into this growing market and establish a strong presence.

Next Section: Team

Team

CEO Julian Rodriguez founded Momento Labs. Rodriguez has a relatively short but relevant industry experience of 1.9 years. He is a first-time founder but has demonstrated strong managerial skills in leading the team at Momento Labs. Beyond this, the company has a strong team with complementary skillsets from marketing to software development. 

Next Section: Differentiation

Differentiation

Momento Labs operates in a niche market with no established competitors. However, several direct competitors exist in AI cloning, such as Character AI, Inflection AI, and Personal.ai. 

While Momento Labs faces competition from other AI cloning platforms, its differentiation lies in its emphasis on user experience and accessibility. The company's streamlined process and growing user base set it apart from competitors. Additionally, no known competitors offer the chance to "chat" with an AI that has cloned the personality of athletes/celebrities, which is available on Momento.

However, it's worth noting that Momento Labs does not currently hold any patents, which may pose a challenge in protecting its technology and maintaining a competitive edge. 

Overall, Momento Labs is in an early stage of development but has demonstrated strong growth potential. With its differentiated approach and growing user base, the company is well-positioned to capitalize on the addressable market of the US Chatbot Market.

Next Section: Performance

Performance

Momento Labs has shown promising growth and traction in the AI cloning platform market. The company has emphasized delivering a best-in-class user experience and has made AI cloning accessible to many users through its streamlined process. With over 78,000 users in its private beta, Momento Labs has demonstrated significant interest in its platform.

The company has also secured significant partnerships with notable figures such as Floyd Mayweather and JuJu Smith Schuster. These partnerships provide Momento Labs with valuable endorsements and contribute to its revenue generation. Momento Labs has reported over $1 million in paid partnerships and celebrity content, indicating its ability to monetize its services.

Momento Labs has also cultivated a solid user base, with over 12,000 creators on its waitlist. This demonstrates the demand for AI cloning services and the potential for further revenue growth as these creators join the platform. The company has reported a remarkable 52% month-over-month revenue growth, indicating its ability to attract paying customers and generate recurring revenue.

While Momento Labs has shown impressive growth and user engagement, it is essential to note that the company is still in the pre-profit phase and has yet to achieve profitability. However, the company's revenue growth and successful partnerships position it well for future success in the AI cloning market.

Overall, Momento Labs has demonstrated strong performance in user acquisition, revenue growth, and strategic partnerships. The company can become a significant player in the AI cloning industry with its innovative platform and growing user base.

Next Section: Risk

Risk

Momento Labs presents several risks that potential investors should consider. Firstly, while the company has seen substantial revenue growth month over month, it is important to note that this growth is based on historical data and may not indicate future performance or financial success. Additionally, the market acceptance of AI cloning platforms like Momento Labs still needs to be higher, which could impact the company's ability to attract and retain users. Furthermore, Momento Labs operates in a competitive landscape with direct competitors such as Character AI, Inflection AI, and Personal.ai. This competition could limit Momento Labs' market share and potential growth. Moreover, the company's valuation appears relatively high compared to its current financials, suggesting it may be overvalued. Additionally, Momento Labs has reported negative net income in recent fiscal years, which could raise concerns about its long-term financial sustainability. 

Next Section: Bullish Outlook

Bullish Outlook

Momento Labs has shown impressive growth and traction in its AI cloning platform. With over 78,000 users in its private beta and more than $1 million in paid partnerships and celebrity content, Momento Labs has established itself as a leading player in the AI cloning space. The company's emphasis on best-in-class user experience and accessibility has resonated with its user base, resulting in a significant waitlist of over 12,000 creators.

Momento Labs' month-over-month revenue growth of 52% is a testament to the demand for its platform and the monetization potential of AI clones. The company's recurring revenue model and advertising partnerships provide multiple revenue streams, contributing to its overall revenue growth. While the margin level is currently low, there is room for improvement as Momento Labs continues to scale and optimize its business operations.

Momento Labs is well-positioned to capitalize on the high market potential of the US chatbot market. The company's notable investors, including Mark Pincus, Ripple, Animoca, and Hard Yaka, provide additional validation and support for its growth prospects.

Overall, Momento Labs' solid user base, revenue growth, and partnerships highlight its potential for success in the AI cloning industry. The company's focus on innovation, user experience, and accessibility positions it for continued growth and market leadership.

Next Section: Bearish Outlook

Bearish Outlook

The valuation of $29.99 million seems inflated, considering the company's current revenue of $154,892 and negative net income of $3.6 million. This raises questions about the company's ability to generate significant returns for investors at such a high valuation. Furthermore, Momento Labs has a monthly burn rate of $297,699.75, which suggests that the company is spending significantly more than it is earning. This high burn rate and the need for more profitability raise concerns about the company's financial sustainability.

Overall, Momento Labs faces significant challenges in profitability, scalability, and maintaining a competitive edge in the AI cloning market. Investors should carefully consider these factors before investing, as its financial performance and market position may not justify the company's current valuation.

Next Section: Executive Summary

Executive Summary

Momento Labs is an artificial intelligence (AI) cloning platform that allows users to create and monetize AI clones. The platform has gained significant traction, with over 78,000 users in its private beta, more than $1 million in paid partnerships and content, and over 12,000 creators on its waitlist. The company has also reported a 52% month-over-month revenue growth, indicating a strong market demand for its offering.

Despite these positive indicators, the company still needs to be profitable, with a net income of -$3,572,397.00 in the most recent fiscal year. The company's burn rate is also relatively high at $297,699.75 monthly. Additionally, while the company has already raised over $4 million in prior funding rounds, its current valuation of nearly $30 million may need to be more inflated, given its current financial status and the competitive landscape of the AI market.

However, Momento Labs has notable investors, including Mark Pincus, Ripple, Animoca, and Hard Yaka, which lends credibility to its business model and prospects. The company also has partnerships with high-profile individuals like Floyd Mayweather and JuJu Smith Schuster, which could boost its visibility and user base.

The funds raised in the current crowdfunding campaign will be used for research and development, marketing, company employment, and working capital, which could help the company accelerate its growth and achieve profitability. Therefore, while Momento Labs presents certain risks, it also offers potential rewards for investors who believe in the future of AI and its applications in content creation and monetization.

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Momento Labs on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $29,990,000
Price per Share: $2.40

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