Overview
Raised: $1,245,471
2021
Business Services, Software, & Applications
EnterpriseTech
B2B
Medium
Low
Summary Profit and Loss Statement
FY 2023 | FY 2022 | |
---|---|---|
Revenue |
$562 |
$113 |
COGS |
$675,325 |
$0 |
Tax |
$0 |
$650 |
| ||
| ||
Net Income |
$-687,265 |
$-158,930 |
Summary Balance Sheet
FY 2023 | FY 2022 | |
---|---|---|
Cash |
$705,837 |
$21,294 |
Accounts Receivable |
$0 |
$0 |
Total Assets |
$705,837 |
$21,294 |
Short-Term Debt |
$9,138 |
$35,424 |
Long-Term Debt |
$330,000 |
$150,808 |
Total Liabilities |
$339,138 |
$186,232 |
Revenue History
Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.
Valuation History
Price per Share History
Note: Share prices shown in earlier rounds may not be indicative of any stock splits.
Employee History
Upgrade to gain access
-
$12.50 /month
billed annually - Free portfolio tracking, data-driven ratings, AI analysis and reports
- Plan Includes:
- Everything in Free, plus
- Company specific Kingscrowd ratings and analyst reports
- Deal explorer and side-by-side comparison
- Startup exit and failure tracking
- Startup market filters and historical industry data
- Advanced company search ( with ratings)
- Get Edge Annual
Edge
Synopsis
The internet is a vast repository of information, but not all is useful or true. Misinformation, low-quality content, and clickbait are pervasive, making it difficult for users to find high-quality, reliable information. This problem has been exacerbated by the ad revenue model that incentivizes the creation and disseminating of such content. Users increasingly seek ways to filter out the noise and access quality information.
Otherweb is a company that aims to address this issue. It has developed an artificial intelligence-based platform that filters out low-quality information, misinformation, and clickbait, providing users with a "walled garden" of high-quality data. The platform aggregates various sources of high-quality information, including news, podcasts, and research studies, providing users with a safe haven from the noise of the broader internet.
The company is in its early stages but has already attracted a community of 93,000 active users. It seeks funding to cover server costs and personnel/hiring expenses to continue its growth.
Price
Otherweb is offering equity at a $48 million valuation. While the company's mission to create a healthier internet is commendable, the valuation seems significantly inflated. Otherweb is currently in the early stage of development, with no revenue to date and a minimal asset base. This raises concerns about the company's ability to generate substantial revenue and achieve profitability in the future.
Considering the lack of traction, revenue, and partnerships, the current valuation of Otherweb appears to be overvalued. Investors should carefully evaluate the company's growth and revenue generation potential before considering an investment in this early-stage venture.
Market
The digital content market is a rapidly growing segment of the technology sector. As of 2021, this market was valued at $211.38 billion and is expected to grow at a compound annual growth rate (CAGR) of 13.78% over the next five years. Otherweb positions itself well within this expanding landscape, focusing on high-quality digital content.
However, Otherweb operates in a highly competitive market. Established social media platforms like Twitter and Facebook are direct competitors. These platforms have significantly larger user bases and far more resources. Despite this, the recent backlash against these platforms due to misinformation and data privacy concerns could present an opportunity for Otherweb.
Otherweb's business model is primarily advertising-based, a common model in the digital content industry. This model, while proven, relies heavily on the platform's ability to attract and retain a large user base. Otherweb's ability to continue its rapid user growth will be crucial to attract advertisers.
Team
Otherweb is led by its founder and CEO, Alex Fink. Fink has over 14 years of relevant industry experience and brings a strong background in technology and management to the company. He has demonstrated his ability to lead and manage a team effectively. Fink is responsible for the vision and direction of Otherweb, driving the company's mission to create a healthier internet by filtering out low-quality information, misinformation, and clickbait. Under his leadership, Otherweb has grown rapidly, attracting a community of 93,000 active users and doubling in size every two weeks on average.
Differentiation
Otherweb positions itself as a solution to the problem of low-quality information, misinformation, and clickbait that permeates the internet. The company claims to utilize artificial intelligence to filter out such content and provide users with a platform that aggregates high-quality information from various sources, including news, podcasts, and research studies. Otherweb aims to create a "safe haven" where users can escape the noise and superficiality of the broader internet.
In a highly competitive landscape, Otherweb differentiates itself by focusing on quality and providing users with a curated experience. It is important to note that Otherweb faces significant competition from well-established platforms such as Twitter and Facebook, which have millions of active users and well-developed algorithms for content curation.
Otherweb's disruption lies in its mission to create a healthier internet by offering users a filtered and curated experience. This approach aligns with the growing demand for reliable and trustworthy information as users become increasingly aware of the prevalence of misinformation and clickbait online. However, the company's differentiation in terms of quality and its ability to attract and retain users remains to be seen, as it is still in the early stages of development and does not currently have paying customers.
Performance
While Otherweb has experienced significant growth in its user base, with a community of 93,000 active users, the company has not yet generated revenue or secured paying customers. As of the most recent fiscal year-end, Otherweb had cash and cash equivalents of $21,294. However, the company has a high monthly burn rate of $13,244.17, indicating that it is operating at a loss.
Otherweb is in the early stages of development and has not made significant progress in product development or team growth since its last funding round.
While Otherweb has a unique value proposition and a growing user base, the company faces significant challenges in monetizing its platform and achieving profitability. Investors should consider the company's business model and competitive landscape before making investment decisions.
Risk
Investing in Otherweb carries a certain level of risk due to the highly competitive landscape in which it operates. The company competes directly with well-established social media platforms like Twitter and Facebook, which already have a large user base and strong brand recognition. Otherweb must differentiate itself and attract users away from these dominant players to succeed. Additionally, Otherweb is still in the early stages of development and has yet to generate any revenue. This lack of revenue and profitability increases the risk for investors, as there is no track record to evaluate the company's ability to monetize its platform. Furthermore, Some investors may consider Otherweb's valuation overvalued, which could impact the potential return on investment. It's important for investors to carefully consider these risks and evaluate the company's ability to execute its business model successfully in a highly competitive market.
Bullish Outlook
Otherweb is addressing a pressing issue in today's digital landscape: the overwhelming amount of low-quality information, misinformation, and clickbait that users are bombarded with on the internet. With its AI-powered platform, Otherweb offers a solution to create a healthier internet by filtering out junk and providing users with a safe haven for high-quality information. This unique value proposition sets Otherweb apart from its competitors and positions it for success in the digital content market.
The market potential for Otherweb is high, as there is a growing demand for reliable and trustworthy sources of information. With an addressable market in the US digital content market, Otherweb has the opportunity to capture a significant portion of users looking for a platform that can deliver curated, high-quality content. The company already has a community of 93,000 active users and is experiencing rapid growth, doubling in size every two weeks on average.
Overall, Otherweb's unique value proposition, growing user base, and innovative approach to tackling the issue of low-quality information on the internet make it a promising player in the digital content market. As the company continues to enhance its platform and attract users, it is well-positioned to capitalize on the high market potential and drive revenue growth in the future.
Bearish Outlook
Otherweb faces several challenges that could hinder its growth and success. Firstly, the company operates in an extremely competitive market, with well-established platforms like Twitter and Facebook dominating the space. These competitors have built extensive user bases and have the advantage of offering a wide range of features and services beyond content filtering. Otherweb's ability to attract and retain users in such a competitive landscape remains uncertain.
In addition, Otherweb's financial performance is hampered by its negative net income of -$158,930 in its most recent fiscal year. This indicates that the company's expenses outweigh its revenue, raising concerns about its ability to achieve profitability in the foreseeable future. With a monthly burn rate of $13,244.17, Otherweb will need to significantly increase its revenue or secure substantial funding to sustain its operations and continue its growth trajectory.
Lastly, Otherweb lacks partnerships, which could limit its ability to expand its reach and user base. Collaborations with established platforms or content providers could offer valuable distribution channels and accelerate user adoption. Without such partnerships, Otherweb may struggle to gain traction and compete effectively against its larger and more established competitors.
Executive Summary
Otherweb is an AI-powered platform that aims to create a "junk-free" internet. The platform aggregates high-quality information sources, including news, podcasts, and research studies, filtering out low-quality information, misinformation, and clickbait. This approach offers users a safe haven from the noise of the broader internet.
However, Otherweb is still in its early stages, with a pre-revenue status and a modest annual revenue of $113. Despite this, the company has a high pre-money valuation of $48 million, which may be considered overvalued given its current financial performance and competitive landscape. The platform operates in a highly competitive market, with big players like Twitter and Facebook as direct competitors. These competitors have established user bases and extensive resources, which could pose a significant challenge for Otherweb.
On the positive side, Otherweb reports a growing user base, with a community of 93,000 active users, doubling in size every two weeks on average. This indicates a strong market demand for its services. The company plans to use the funds raised in this round to cover server costs and personnel/hiring expenses, which could help accelerate its growth and development.
Disclaimer
The AI-enhanced analyst reports ("AI reports") provided by Kingscrowd are experimental in nature and may exhibit certain limitations and uncertainties. These reports are generated in part or in whole by artificial intelligence algorithms, which have the potential to hallucinate (e.g. generate fictitious information), interpret data incorrectly, omit information, or reference sources of data that may contain inaccuracies.
While we strive to provide reliable and accurate information, it is essential to understand that the AI reports should not be solely relied upon as the basis for making investment decisions. We strongly advise all users to exercise caution, conduct thorough due diligence, and verify data and facts independently before making any investment decisions.
The AI reports are intended to serve as one of the tools in your investment research process, offering additional insights and perspectives, and exposing more of our dataset to customers by transforming that data into natural language. They should be used in conjunction with other sources of information and professional judgment. Kingscrowd does not assume any liability for the accuracy, completeness, or reliability of the AI reports or any investment decisions made based on them.
Investing in startups and early-stage companies involves inherent risks, and it is essential to consult with qualified professionals and seek independent financial advice before making any investment decisions.
By accessing and using the AI reports, you acknowledge and accept the experimental nature of this feature and agree to use it at your own risk.
Please note that this disclaimer may be subject to updates and revisions as we continue to enhance our AI algorithms and improve the accuracy and reliability of the generated reports.