The Ultimate Engineering AI Assistant

Plus, Initialized Capital Partner, Kim-Mai Cutler on the pod!

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Heyyyo,

Bucks in six. Giannis was utterly ridiculous. And, I cannot think of a better story than Giannis dropping 50 to win his first NBA Finals and Finals MVP!

Jeff Bezos rode a phallic missile into space wearing a cowboy hat.

Bitcoin dropped below $29,600 and HODL’ers yelled, “FUD.”

The Stockmarket was a hot mess until Wednesday and Robinhood is preparing for an IPO at between $38-42 — I wouldn’t touch this with a ten-foot pool. You just know Roaring Kitty and the AMC Ape Gang are just waiting to pounce!

Last, but not least, I started a new segment focused on my card trading hobby (vice) and how I use cards (paired with sports bets 🤷‍♂️) as an alternative investing strategy.

And OnlyAlts.com has been kind enough to support it by offering you a FREE $50 when you open your account through me!

On the pod, we had Kim-Mai Cutler from Initialized Capital on to talk about the impact media is having on the venture world — as a former journalist turned techie, turned VC, Kim had some pretty interesting thoughts on how “smaller funds” are using social media and content to compete.

Listen to my full interview with Kim-Mai Cutler here 👉 https://spoti.fi/3izOwBM

Follow me on Twitter @kitun.

Scott

Every week I breakdown startup pitches with the added hook that you can invest whether you’re accredited or not (if you don't know what that means, click here).

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Company Bio

MSBAI is the creator of GURU, the ultimate engineering AI assistant.

This part gets a little thick — this is not a dating app or gaming network. It’s literally attempting to change how we test systems in aviation and aerospace. And, if you haven’t noticed, a lot of rich people are spending BILLIONS trying to get to space right now and the result of this will be a heightened focus on both rocket building and airplane/drone travel — if Bezos can go to space for 5 minutes, why can’t we cross the Atlantic in an hour?? The short answer has been money. It is incredibly expensive to build and flight test and MSBAI is working to drastically reduce that by providing access to reliable high-performance computing!

Meet the Founder

Watch my full interview with MSBAI co-founder Allan Grosvenor here.

Allan Grosvenor has worked in aviation, energy, and space launch for twenty years doing technology development, and leading teams at Numeca, Ramgen Power Systems, and Masten Space Systems. Alan and his team ran a series of tech-dev projects using a variety of AI approaches to achieve powerful design and analysis capabilities — where the idea for MSBAI ultimately was born.

Allan is basically a genius, as you can probably tell form my conversation with him! His entire career has been spent using AI to simulate aviation/rocket engineering. And, judging from all the billionaires racing to space right now — it’s fair to say Allan got into the right business. He also spent some time running North American sales for Numeca, so he’s not just a technical founder which I think is very important in this highly competitive industry.

Traction

  • $1M contract with USAF

  • $500k ARR in 2020, projecting $3M ARR in 2021

  • GURU enables 92% of SMEs to access High-Performance Computing 

  • GURU increases energy efficiency in an industry responsible for 30% of US energy consumption

MSBAI is still very early and revenue is still mostly driven by government contracts and pilot programs. But, with a SaaS recurring revenue model, if they’re able to prove their value, it should be very sticky and when you consider that their core target customer (Small to Mid-tier Enterprise) largely (92%) doesn’t have access to high-performance computing which significantly slows their ability to innovate — MSBAI could grow rapidly within the SME market.

Terms & Takeaway

Invest in MSBAI here 👉 https://bit.ly/3kIn3Af

Security Type: Equity
Pre-Money Valuation: $5,984,000
Investment Goal: $1,070,000
Raised (as of publishing): $622,575
Minimum Investment: $198.56

Here's what I like: I think this company is just cool! It used to be said that SaaS was eating the world, now they say AI is eating the world… MSBAI has both. During my interview with Allan I couldn’t help but think of the scene in Armageddon when Billy Bob Thornton explains the Wile E. Coyote rocket maneuver … essentially, they built an app that allows you to test engineering requirements and outcomes before spending millions on R&D.

Here's what I don't love: This industry is way above my head (literally) and I just don’t have enough understanding of how Government contracts are awarded to project likelihood of success. Additionally, anytime you’re betting on taking over a market with near zero adoption — there is no telling whether demand is there but access is not, or if demand is simply not there. Time will tell on MSBAI’s ability to deliver.

Who should invest and why: If you’ve been excited by the renewed interest in Space travel and aerospace innovation then MSBAI should have your attention. I don’t think I’m going out on a limb saying the market growth for air-travel, drones and high-performance computing is going to be insane over the next decade; but will apps like GURU be a major piece of the engineering process or just an early novelty??

This is the first time MSBAI is raising outside capital and the valuation of under $5.9M is pretty appealing for a moon shot (high risk, high reward) investment.

As always, startup investing is super high risk, anything can happen. So, don’t spend money you’ll need to buy your ticket to Mars... 🛸 💸

Invest in MSBAI here 👉 https://bit.ly/3kIn3Af

Questions? DM me on Twitter @kitun

Disclaimer: It goes without saying, but this information should not be constituted as financial advice, my investing opinions are my own and all diligence is the responsibility of each individual investor.