RAD AI

RAD AI

Growth Stage

Platform providing advertiser content for users to share

Platform providing advertiser content for users to share

Overview

Raised to Date: Raised: $967,366

Total Commitments ($USD)

Platform

Dealmaker Securities

Start Date

11/29/2023

Close Date

02/22/2024

Min. Goal
$10,000
Max. Goal
$1,000,000
Min. Investment

$500

Security Type

Equity - Common

Series

Series B

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$0.33

Pre-Money Valuation

$53,840,752

Rolling Commitments ($USD)

Status
Funded
Reporting Date

02/28/2024

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

$11,516

# of Investors

812

Momentum
Funded
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Year Founded

2018

Industry

Business Services, Software, & Applications

Tech Sector

AdTech

Distribution Model

B2B

Margin

Low

Capital Intensity

Low

Location

Santa Monica, California

Business Type

High Growth

RAD AI is raising funds on Dealmaker Securities. The company leverages data and analytics for fully automated influencer marketing. RAD AI’s platform is simple and effective and allows small and medium-sized businesses to drive targeted traffic and conversions. The business reported three times revenue growth from 2022 to 2023, with a 75% gross margin and 200% LTV. Jeremy Barnett and Bradley Silver founded RAD AI in July 2018. The current crowdfunding campaign has a minimum target of $9,999.99 and a maximum target of $999,999.99. The campaign proceeds will be used for payroll, marketing and advertising, and general and administrative expenses.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$446,498

$515,854

COGS

$318,615

$136,460

Tax

$0

$0

 

 

Net Income

$-3,877,391

$-1,044,986

Summary Balance Sheet

FY 2022 FY 2021

Cash

$203,235

$280,149

Accounts Receivable

$49,917

$249,354

Total Assets

$4,653,779

$919,988

Short-Term Debt

$0

$110,547

Long-Term Debt

$1,125,000

$250,000

Total Liabilities

$1,125,000

$360,547

Financials as of: 11/29/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
RAD AI 05/01/2024 Dealmaker Securities $62,828,416 $1,476,471 Equity - Common Active RegCF
RAD AI 02/21/2024 Dealmaker Securities $53,840,752 $967,366 Equity - Common Funded RegCF
RAD AI 11/02/2023 Wefunder $48,002,823 $1,199,999 Equity - Common Funded RegCF
RAD AI 04/29/2023 Wefunder $18,000,812 $4,152,088 Equity - Common Funded RegCF
Rad Intelligence 09/17/2020 Wefunder $5,000,000 $816,583 SAFE Funded RegCF
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Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Valuation History

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.

Employee History

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Analyst Report

Synopsis

Influencer marketing has become a powerful tool for businesses to reach their target audiences. However, the process can be time-consuming and expensive, especially for small and medium-sized businesses (SMBs). RAD AI addresses this issue by providing a fully automated influencer marketing solution.

RAD AI's platform allows businesses to provide their best digital content, set the price and budget, and only pay for the website visits RAD drives. The platform uses real social media users to distribute the content to their social media audiences, driving website visits and conversions.

This approach has proven successful for RAD AI, with the company reporting three times revenue growth from 2022 to 2023, a 75% gross margin, and a 200% lifetime value (LTV) increase for clients. This indicates that RAD AI's customers are willing to pay for its services and see a significant return on their investment.

Furthermore, RAD AI's participation in the Microsoft for Startups and Expert Dojo accelerator programs, as well as backing from venture capital firms such as Kickstart, Quarry, City Light Capital, Artis Ventures, Gradient Ventures, Precursor Ventures, Hike Ventures, Harmonix Fund, OCV, and Santa Barbra Venture Partners, demonstrates the company's potential in the market.

With the funds raised in this campaign, RAD AI plans to invest in payroll, marketing and advertising, and general and administrative expenses. This investment will enable the company to continue its growth trajectory and deliver its innovative influencer marketing solution to even more SMBs.

Next Section: Price

Price

RAD AI is raising funds through common equity at a valuation of $53.8 million. With an annual revenue of $446,498 and a revenue-to-valuation multiple of 120.58x, RAD AI appears to be overvalued based on its current revenue. However, it's important to note that the company reported three times revenue growth from 2022 to 2023, indicating significant potential for future revenue growth. RAD AI's strong revenue growth and high gross margin of 75% suggest a promising business model.

RAD AI has already raised $33 million in prior funding rounds, demonstrating investor confidence in the company's potential. The company's partnerships and user base further validate its value proposition and market traction.

Next Section: Market

Market

RAD AI operates in the rapidly-expanding US Artificial Intelligence (AI) in Marketing market, which reached a value of $3.54 billion in 2023. The market is growing at a fast pace, with a Compound Annual Growth Rate (CAGR) of 31.6%. This growth is driven by increasing demand for data-driven marketing strategies and the growing need for personalized customer experiences.

The company's product, a fully automated influencer marketing platform, is well-positioned within this market. By leveraging AI to automate influencer marketing, RAD AI offers a unique solution that helps small and medium-sized businesses drive targeted traffic and conversions. This offering aligns with market trends as businesses increasingly use AI for marketing automation and personalization.

While the market is characterized by moderate competition, RAD AI's unique value proposition of a fully automated influencer marketing solution sets it apart. Given the expanding market size, increasing demand for AI in marketing, and positive business performance, the company's growth potential is high. However, RAD AI must continue to innovate and differentiate its products to maintain its competitive edge and capitalize on the market's growth potential.

Next Section: Team

Team

RAD AI is led by CEO Jeremy Barnett. With six years of relevant industry experience, Barnett brings a deep understanding of the business services, software, and applications industry to the company. He is a seasoned entrepreneur and has successfully led RAD AI through its high-growth phase. Barnett's influencer marketing expertise and leadership skills have been instrumental in driving the company's success.

Assisting Barnett in the leadership of RAD AI is CFO Aaron Kuntz. Kuntz brings six years of relevant industry experience and a strong background in financial management. His financial planning and strategy expertise have been crucial in supporting RAD AI's growth and ensuring financial stability.

The RAD AI team consists of 17 members, all dedicated to the company's success. The team's expertise spans various areas, including data analytics, marketing, software development, and business development. Their collective skills and experience contribute to developing and implementing RAD AI's fully automated influencer marketing platform.

Next Section: Differentiation

Differentiation

RAD AI differentiates itself in the market by offering a fully automated influencer marketing solution specifically tailored for small businesses. The company leverages data and analytics to drive targeted traffic and conversions for its clients. RAD AI's platform is simple and effective, allowing businesses to maximize their marketing efforts without the need for extensive resources or expertise.

While the market for artificial intelligence in marketing is moderately competitive, RAD AI stands out with its focus on small and medium-sized businesses. Many established solutions primarily cater to larger enterprises, leaving a gap for smaller businesses to utilize influencer marketing effectively. RAD AI's platform fills this gap by providing an accessible, affordable solution that delivers results.

Although RAD AI faces competition from a significant number of direct competitors in the market, its differentiation level in terms of quality is high. The company's platform is designed to be user-friendly and efficient, enabling small businesses to leverage influencer marketing to drive their business growth effectively. RAD AI's unique value proposition and ability to deliver results make it a compelling choice for small businesses looking to maximize their marketing efforts.

Next Section: Performance

Performance

RAD AI has reported impressive financial performance. The company experienced three times revenue growth from 2022 to 2023, reaching $446,498 in annual revenue. RAD AI's strong gross margin of 75% and a customer lifetime value (LTV) growth of 200% indicate the company's ability to generate substantial revenue.

RAD AI has a solid financial foundation, with $1 million in cash and a $210,000 burn rate. The company has also raised significant capital, totaling $33 million in prior funding rounds.

With a high-growth business model and a strong team, RAD AI is well-positioned for further success and expansion in the US artificial intelligence marketing market.

Next Section: Risk

Risk

RAD AI faces several risks as it seeks to establish itself in the competitive artificial intelligence marketing industry.

RAD AI operates in a moderately competitive market. While the company does not have any direct competitors mentioned, there are other companies in the AI marketing space. These competitors may offer similar solutions, have established customer bases, or possess greater financial resources, which could make it difficult for RAD AI to gain market share and compete effectively.

RAD AI also faces the risk of overvaluation. The company's current valuation suggests it may be overvalued compared to its revenue and net income figures. This could raise concerns for potential investors, as an overvalued company may struggle to meet expectations and deliver returns.

Next Section: Bullish Outlook

Bullish Outlook

RAD AI is a leading player in the rapidly growing field of influencer marketing, catering specifically to small and medium-sized businesses. With its fully automated platform, RAD AI enables businesses to drive targeted traffic and conversions by leveraging data and analytics. The simplicity and effectiveness of the platform make it an attractive solution for businesses looking to maximize their marketing efforts.

RAD AI has already gained traction in the market, with a growing user base and a strong track record of revenue growth. The company reported three times revenue growth from 2022 to 2023, highlighting its ability to generate meaningful returns for its clients. With a gross margin of 75% and a customer lifetime value (LTV) growth of 200%, RAD AI demonstrates its value proposition and the effectiveness of its platform.

The addressable market for artificial intelligence in marketing is significant, particularly in the United States. As businesses increasingly recognize the importance of influencer marketing, RAD AI is well-positioned to capture a significant portion of this market. The company's focus on small and medium-sized businesses further enhances its market potential, as these businesses often have limited resources and can benefit from RAD AI's cost-effective and efficient solution.

RAD AI's strong financial performance and successful prior funding rounds, including backing from notable venture capital investors like Kickstart, Quarry, and Gradient Ventures, demonstrate confidence in the company's growth potential. Additionally, RAD AI's participation in accelerator programs like Microsoft for Startups and Expert Dojo further validates its innovative business model and market position.

Next Section: Bearish Outlook

Bearish Outlook

RAD AI operates in a moderately competitive market where numerous companies offer influencer marketing solutions. While RAD AI claims to provide a simple and effective platform for small and medium-sized businesses, it lacks partnerships, which could limit its ability to reach a broader customer base. 

Furthermore, RAD AI reported negative revenue growth of -13.40% from 2021 to 2022, indicating a decline in sales. This raises concerns about the company's ability to attract and retain customers. 

Moreover, RAD AI's valuation appears to be overinflated compared to its revenue. With an annual revenue of $446,498.00, a pre-money valuation of $53,840,752.00 seems excessive. This level of overvaluation raises questions about the company's long-term sustainability and potential for future returns.

Next Section: Executive Summary

Executive Summary

RAD AI is a technology company that leverages data and analytics to provide a fully automated influencer marketing solution for small businesses. The company's platform is designed to be simple and effective, enabling businesses to drive targeted traffic and conversions. Brands provide RAD AI with their best digital content, set the price and budget, and only pay for the website visits RAD AI drives using real social media users to distribute the content.

The company has shown promising growth, with a reported three times revenue increase from 2022 to 2023, a 75% gross margin, and 200% Lifetime Value (LTV) growth. However, it is worth noting that the company's annual revenue growth was -13.40% from 2021 to 2022, and it is in the pre-profit stage. The company has previously raised $33 million in funding and seeks additional capital through crowdfunding.

RAD AI operates in a moderately competitive market with low barriers to entry. However, the company's innovative influencer marketing approach and focus on small businesses could give it a competitive edge. Additionally, the company's participation in accelerator programs such as Microsoft for Startups and Expert Dojo suggests recognition and support from established tech entities.

Proceeds from the current crowdfunding campaign, which has a minimum target of $9,999.99 and a maximum target of $999,999.99, will be directed towards payroll, marketing and advertising, and general and administrative expenses.

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RAD AI on Dealmaker Securities 2023
Platform: Dealmaker Securities
Security Type: Equity - Common
Valuation: $53,840,752
Price per Share: $0.33

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