AlphaAR

Disclaimer All research on startup and the whole investment memo has been done for personal use of Akim Arhipov.

At Alpha3D, they believe in an immersive digital future and it is their mission to make creating 3D content fast, easy, scalable, and accessible for everyone. They democratize creating 3D content so that we can all build the best future digital experiences together.

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Alpha3D

Alpha3D enables users to easily create digital assets 10x cheaper in minutes, instead of days, with just a few clicks and no previous 3D modeling knowledge necessary.

All you have to do is upload your 2D images to the Alpha3D app and let the AI take care of the rest. Compatible with any 3D environment, the digital assets are completely interactable and can be used in Augmented Reality (AR), Virtual Reality (VR), Virtual Try-On (VTO), gaming, the Metaverse, or even as an NFT.

The metaverse market was worth $22.79 billion in 2020 and is expected to be worth $996 billion by 2030.

By 2026, 25% of people will spend an hour per day in the metaverse

Considering the current switch which is already happening towards the 3D, brands and retailers are meeting their customers where they are - in the metaverse. This means that the demand for 3D content, as the key component for enabling the development of virtual platforms (the Metaverse), has reached a new high.

However, the creation of 3D models is extremely expensive, laborious and time-consuming. Creating a single digital asset can take a whole team weeks and thousands of dollars.

Clients coming organically - 3-4 companies on daily basis. Everyone wants to save costs on 3D artists.

Top 4 needs to cover with this round: a) Scalability - 3D artists clean 100-200 models per day and they look to enable more research to boost the quality of the final results; b) Educate market about the approach; c) Data acquisition - acquire additional data sets; d) Recruit machine learning scientists - 5-15 needed;

Remote team at first - total team of 35 from 14 different countries.

4 founders:

CEO - https://www.linkedin.com/in/madisalesmaa/

COO -  https://www.linkedin.com/in/laarmann/

CMO - https://www.linkedin.com/in/mariliisretter/

CTO - https://www.linkedin.com/in/anbarjafari/

B2B and B2C

Monthly subscription to our self-serve Alpha3D platform.

Pricing model

Subscription packages based on the volume of 3D models generated and number of seats for larger organizations.

B2B2C

Native integrations with partnering AR/VR platforms that enables their users to use and generate 3D models via Alpha3D directly in their app interface.

Pricing model

One-off API set-up cost for the partner app. Revenue share % of each Alpha3D model sold/rented via partner app API.

2022: ARR - 350K EUR

2023: MRR - 40K EUR

Contracted revenue for 2023 - 1.3M EUR (2M ARR total)

Burn rate - 90K EUR

835k EUR raised in total

Investors on board: Curiosity VC, ZAKA

Board members: Madis Alesmaa, Rait- Eino Laarmann

Cap table here

Amount: 600K EUR

Investment type: convertible note with 7% annual interest rate and 20% discount to the Series A round

Valuation cap: 11.75M EUR

Committed so far: 200k EUR signed from existing investors.