Would you invest in AI that clones your voice and personality?

CHART OF THE WEEK 📈

• August has been a great month for investors with 116 news deals available online - 28 more than in July, giving them more investment opportunities.

• Investors invested $32.4 million across all online deals, only one more million than in July, which shows stability in investors’ behavior during the summer.

• StartEngine is the platform where investors backed startups the most in August. The platform hosted SmartCups’s raise, which collected $1 million in 24 hours when SmartCups was announced the winner of Fox’s Food Stars contest by Gordon Ramsey.

• Investors backed equity Reg CF deals 10x more than debt deals. Despite having great offerings in both categories, investors tend to back more the scalable businesses raising equity than the small businesses raising debt and revenue share notes.

PITCH REVIEW 💸

Brief: Momento Labs is a creator and AI cloning (such as a person’s voice or personality) platform allowing users to craft and profit from AI clones. Remarkably, the firm has showcased a 52% monthly revenue growth. It’s currently raising $1,234,999 at a valuation of $29.9M with a minimum investment of $199.

Key People: Founder and CEO Julian Rodriguez

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Summary

Here's what we like: 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 it continues to scale and optimize its business operations.

Here's what we don't: The valuation of $29.9 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.

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