From $351K to $43M: The Growth of AI in Equity Crowdfunding

CHART OF THE WEEK 📈

By Teddy Lyons | Read

• The total funding raised has increased significantly over the years, from $351,311 in 2016 to $43,154,751 in 2024.

• A noticeable increase occurred between 2019 ($4.57M) and 2020 ($12M), almost tripling. Another jump happened between 2020 and 2021 ($21.7M)

• The largest leap is from 2023 ($24M) to 2024 ($43.15M), nearly doubling in one year.

• The number of AI companies raising funds has also grown, from just 2 in 2016 to 55 in 2024.

• Funding slightly decreased from $26.8M in 2022 to $24M in 2023, before surging again in 2024.

Everyday investors net +$60M in proceeds from the sale of exclusive assets

From CEOs to shop owners, investors in Masterworks’ art offerings have received more than +$60,000,000 in total net proceeds to date (including principal) across their 23 exits.*

Surprised that so many people are interested in art investing? Bank of America recently found 83% of wealthy American investors 43 and under already collect, or want to. Normally, only the top 1% of investors would be able to diversify with art like Picassos and Banksys. But with Masterworks, you can easily diversify into this asset class without needing millions, or art expertise.

With a team that’s been working since 2019, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year).

Our readers can even SKIP THE WAITLIST.

Past performance not indicative of future returns. Investing Involves Risk. See Important Disclosures at masterworks.com/cd.

PITCH REVIEW 💸

By Teddy Lyons \ Deal Report

Brief: SelfDecode is a precision health company that has developed an AI-based platform designed to provide personalized health recommendations. The platform analyzes over 200 million genetic variants, lab results, lifestyle factors, symptoms, conditions, and individual health goals. SelfDecode addresses the challenge of personalized healthcare, where individuals often struggle to find health recommendations tailored to their unique genetic makeup and lifestyle. Traditional healthcare approaches may not account for the myriad of personal factors affecting an individual's health, leading to generalized advice that might not be effective for everyone. The company's platform offers a solution by using AI to analyze a vast array of personal health data, providing users with specific recommendations for supplements, diet, and lifestyle changes.

Key People: Leading the team is CEO Joseph Cohen, who brings a decade of industry experience and previously founded the health content company SelfHacked. Ralph Kenney (COO) is a seasoned executive with over 20 years of C-level experience in technology, healthcare, and e-commerce, working for Fortune 500 companies and startups. His career began at AT&T Bell Laboratories, where he made significant contributions to data communications protocols and co-authored an international standard for frame relay network signaling. Kenney's accomplishments include leading a company from startup to successful IPO in six years as COO and founding and managing a profitable seven-figure business. Dr. Jon Lerga Jaso, a Bioinformatics Scientist at SelfDecode, holds an M.Sc. in Bioinformatics and a Ph.D. in Genetics. Before joining SelfDecode, he worked at the genetic testing company tellmeGen, where he developed algorithms for ancestry inference and discovering distant relatives through DNA. The wider team consists of 70 engineers, scientists, and AI experts.

Here's what we like: The company operates in a rapidly expanding sector, with the U.S. genomics market projected to grow significantly at 16.9% annually. SelfDecode has demonstrated strong revenue growth, increasing from $1.4 million in 2022 to $2.3 million in 2023 at strong 79% gross margins. While the company has not officially filed updated financials, the company claims to have recorded $3.5M in 2024, a growth rate of 66% from 2023. SelfDecode has served over 150,000 paying customers and raised over $11M, indicating strong product-market fit and investor support.

Here's what we don't: SelfDecode faces significant challenges compared to its competitors, primarily due to its smaller size and more limited market reach. Established players like 23andMe and Helix already have more extensive customer bases and stronger brand recognition, which could make it harder for SelfDecode to attract new customers and scale effectively. Financially, the company’s high revenue multiple of 26x suggests potential overvaluation. Additionally, the company has just 9 months of runway, indicating that it will likely need to raise additional funding for the foreseeable future unless they are able to manage burn more effectively. 

STAFF PICKS 🌶️

By Teddy Lyons

AlphaRose Therapeutics

AlphaRose Therapeutics is pioneering personalized medicine for children with rare genetic diseases using antisense oligonucleotide technology. The company rapidly develops treatments for neurodevelopmental conditions and has already created Rosiphersen for HNRNPH2 genetic mutations. Its AI-driven platform, Argus, is identifying additional therapies to expand its pipeline.

• Pre-Money Valuation: $12 million

• Minimum Investment: $599

Immersed

Immersed is revolutionizing remote collaboration with spatial computing software that virtualizes the workforce through AR/VR. Its technology enables users to work together, whiteboard, and pair programs seamlessly, regardless of location. The company is developing an AI-trained Curator and a work-focused Visor to enhance productivity in virtual workspaces. Featured in Forbes and Bloomberg TV, Immersed is at the forefront of redefining how teams collaborate remotely.

• Valuation Cap: $200 million

• Minimum Investment: $100

Talsey AI

Talsey AI is transforming the hospitality industry with AI-powered guest engagement, automating 90% of tasks to address staffing shortages, enhance customer satisfaction, and increase hotel revenues. Integrated into over 25 properties, including Marriott and Best Western, the system streamlines operations while improving the guest experience. With over $100,000 in annual recurring revenue, Talsey AI is poised to modernize hotel management through automation and efficiency.

• Valuation Cap: $6 million

• Minimum Investment: $500

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