Maigrate

Welcome back everybody, Happy Monday!

Personal Update: On October 5th I released an article (ThinkBack.AI) hashing out an idea for a pitch competition that I entered. I am excited to say I made it to the national network round and am submitting a final slide deck this Thursday.

But let’s get back to this week’s prerogative…

This week’s startup is based out of NYC and is providing creators with a no-code platform that allows them to create their own AI Avatar that fans can talk to…

“Empowering you in creating your very own Generative AI copilots for any imaginable application, all within a matter of minutes” – Maigrate

🎬 Behind the scenes

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🎤 Intro

First of all, What’s a virtual avatar co-pilot?

Basically, it’s a virtual version of yourself that utilizes AI to think, act and talk just like you. The information it knows about you depends on what data the AI is trained on. 

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📑Case Study: Let’s look at Taylor Swift, who just started dating Travis Kelcy and I imagine the fans are getting curious. With over 270 million followers on Instagram I would put money on at least half of them would kill to actually have a conversation with her to get some of the deets on the tea.

❌ PROBLEM

Taylor doesn’t have the time or energy to conversate with all 270+ million fans.

✅SOLUTION

Incomes Maigrate, Taylors new innovative bestfriend. This platform enables her to create a virtual & scalable version of herself allowing fans to engage in conversations, share jokes, or seek advice.

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This type of fan engagement and technology is already in place and being used and tested. For example, Mr. Beast has an AI rendition of himself that is trained on hundreds of hours of his YouTube content. See below…

This service is valuable to creators because it helps them strengthen the creator-fan relationship, and allows creators to focus more on their content creation and brand building. Which is, what ultimately drives their success.

Keep in mind, Mr. Beast is an outlier with an abundance of resources to deploy onto a project such as this. Maigrate is designed for the everyday creator or influencer who may not have millions of dollars to spare.

By leveraging Miagrate’s no-code user interface, creators can build and train their own AI version of themselves tailored to their unique needs and brand voice which can be hosted on a separate hosting platform such as Meta.

Overall, Maigrate allows creators a cost-effective and accessible way to connect with their fanbase and enhance their brand presence.

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📦 Product

Alright, now that the problem for creators is addressed, let’s talk some nitty-gritty product details. Here are some quick facts.

💬 Query Optimization 101

Below are two different queries that anyone could ask a large language model…

If you were asking these two queries to your real-life friend, the difference between the two queries regarding the energy needed to answer them is obvious.

 A basic addition problem doesn’t require a mathematics professor to solve. Whereas explaining quantum physics to a 5-year-old, probably requires an expert.

Just like human experts, Large Language Models vary in their capabilities.

Take OpenAI for example, they have Chat GPT 3, 3.5, and 4.

ChatGPT 3 is free and handles basic questions with ease. However, to obtain optimal results for complex questions, a more advanced—and thus more expensive—model is required (GPT4).

Miagrate’s feature automatically analyzes the complexity of user questions and matches them with the most suitable Large Language Model. As in, directing simpler questions to cost-effective basic models like ChatGPT 3 and more complex ones to advanced versions such as ChatGPT 4, ensuring accurate responses while optimizing cost-efficiency.

This is what results in…

“Over 70% Reduction in LLM Costs.” – Maigrate

🤑 Revenue Resolution

Okay cool, Maigrate has a problem and solution with a proprietary way to optimize for revenue.

 Let’s go down some of their pathways to profitability…

Maigrate’s core business model is focusing on D2C (Direct to the creator in this instance) at the moment and is already working with around 200 influencers and a few small and medium-sized businesses.

💵Pricing

For creators, the monthly price is going to start at $50, which goes towards keeping their avatar running and up to date on new information.

For businesses, the price varies depending on the expected number of queries in a given period of time. Just like all AI-related businesses, as usage increases, associated costs increase proportionally.

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🚀 Catalysts for Success

Some of the things this company has going for them…

❌ Potential pitfalls

Just as vital as discussing the factors contributing to this company’s potential success, is a thorough examination of reasons it might not succeed.

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🔮 Crystal Ball Conjectures

Grab your detective hat, we’re about to investigate the potential highs and lows that await this company’s future.

⛈️ A shadowed outlook

Worst Case Scenario, Maigrate doesn’t attract interest from creators and people fail to see the value in this no-code service.

Or, the absolute worst-case scenario could involve a creator’s AI Rendition being hacked into.  False information would be spread about themselves or other creators creating a lack of trust for the company and product.

This scenario, however possible, seems unlikely as the founders are not ignoring these potential pitfalls and taking the correct course of action in regard to security and privacy.

🌄 The hopeful horizon

The best-case scenario for this company mirrors the success and valuation of prominent players in this field already. 

One of the biggest examples I have been mentioning is 

Maigrate would become the ultimate standard for fan interaction and social media users start to frown upon people that don’t have an AI Co-Pilot. This outlook is a lot more rosy to imagine and is very well possible.

Possible doesn’t mean easy though. So we will have to wait and see how this company does as soon as the product is officially released and how onboarding goes in the next 6-12 months 

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Thanks for reading

-Owen 

Alympos

👋 Welcome back! Hope the weekend was great!

From my desk: This was the first weekend in NYC that it wasn’t pouring rain in what felt like months, so I got to enjoy some quality time outdoors.

Also, this week I learned how to trade option contracts, well kind of, for the simulated hedge fund at Baruch—which was exciting. The commodities team got to pitch on Thursday, and we pitched a trade (bull call spread→neutral to bullish trade) for soybeans with an intended exit by late April. Let’s hope this trade doesn’t flop, or my virtual wallet will have to be on a soy-free diet.

Anyway, enough banter, let’s get into this week’s revelation…

This week’s startup, flexing its roots from San Antonio, Texas, promotes fitness and a healthy lifestyle through its credit card perks. I introduce to you…

“Ensures that your dedication to a healthy lifestyle is recognized and rewarded.” –Alympos

🎬 Behind The Scenes

• Zeke Torres, Founder and CEO
• Austin Wright, Co-Founder
• Team: Zeke and Austin are full-time, with a few part-time members
• Working on this full-time since January 2022 
• Currently forging relationships with credit distributors and premium fitness brands
• LinkedIn and Instagram

🎤 Intro

Alympos is not just a credit card; it’s a lifestyle choice for fitness enthusiasts. This company is all about rewarding healthy individuals for their expenditure on health and fitness products. They ensure every workout counts, lightening your wallet’s load while refining your physique.

📦 Product/Service

Okay, this credit card rewards users for spending on health and fitness products. They will be partnering with some big-name brands such as LifeTime and IronMan who support their vision and provide a seamless entry into the fitness ecosystem.

Alympos plants its flag in the premium domain of credit cards, as evidenced by the brands and partnerships they are engaged with.

The exact details regarding the number of reward points for each purchase and desired cash-back timelines are still in the works. As this company is in the midst of forging relationships with credit distributors and ensuring everything is in tip-top condition.

They have an expected release date of the card and credit service in Mid-2024 hoping to benefit from the easement of interest rates that is forecasted for late next year.

Lower interest rates would most likely cause…

1. Credit distributors to be more willing to help launch new ventures (Alympos)
2. Fundraising capabilities to find a smoother passage (easier to raise capital)

Speaking of credit, let’s look at the dynamics of credit card companies…

🏦 Credit Card Company 101

This week’s question; how does one even start a credit card company?

It’s alright, I was in the dark until recently as well. But I’d suggest buckling up before we delve into this one—we have a short maze of complexity ahead.

My first question was, can anyone start a credit card company?

The short answer is yes,

but the long answer whispers that it’s not for the faint of heart.

Starting a credit card company entails

• Navigating a complex regulatory landscape
• Obtaining necessary licenses
• Building relationships with financial institutions for a source of credit
• Setting up a secure and reliable technology infrastructure

In 2023, just about everyone has a credit card with only 9% of Americans saying they primarily use cash. This trend, “Buy now Pay Later” is nothing new and has been growing rapidly since its birth in the 1960’s.

Some quick stats

• Americans 18+ years of age have on average 3.84 credit cards
• There were 441 million open credit card accounts in the U.S. as of Q3 2022
• 77% of U.S. adults have had at least one credit card
• There are over 80 active credit card distributors in the United States

This industry is not going anywhere and the only thing holding some credit distributors’ growth is interest rates;

Higher interest rates increase the cost of borrowing and potentially cut profit margins for credit card issuers or require rate adjustments for consumers.

Speaking of monetary policy…

How is Alympos planning to carve a path to profitability?

Let’s get into it…

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Revenue Streams 💵→📈

The main sources of income will be generated through a subscription to the card, interchange fees, and revenue-sharing agreements with brand partnerships.

💳 Interchange fees

One of the main streams of revenue for Alympos, alongside many other credit card issuers, will be interchange fees (transaction fees).

This model is pretty self-explanatory and is justified through the quality and deals users have access to if they choose to sign up for an Alympos card.

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🤝 Partnerships with brands

Brands are interested in working with Alympos for a few reasons…

Rewards for being healthy are cool

If I were to gauge reactions from fitness enthusiasts on this idea, finding disapproval would be like stumbling upon a fish that fears water.

Everyone wants to be rewarded and feel recognized for their efforts, especially when it comes to fitness, and this is a way to make that happen.

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(The real deal): Elevating brands customer LTV

Now that we’ve got the formalities out of the way, let’s take apart the win-win that businesses stand to gain by partnering and aligning with Alympo’s mission.

Let’s take Lululemon for example…

1. Imagine if Lululemon were to partner with Alympos and sprinkle some rewarding incentives for their clientele to live a healthier lifestyle
2. Their clientele would likely start ramping up their workout regime or at least consider spending more on living a healthier lifestyle
3. Typically, an uptick in health and fitness expenditure leads to an elongated and more active lifespan – which in turn means customers spend more money at Lululemon purely because they are alive and well for a longer period

Overall, Alympos has a model that is built on the lifetime value of customers, helping everyone, even businesses, live a little longer.

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🚀 Catalysts for Success

⤴ Uplifting Mission

Alympos has a mission that is inarguable. I mean, “Rewards for being healthier”, c’mon How can someone dislike that?

In today’s fast-paced society, individuals can find their health-conscious actions overlooked or undervalued. Making time for regular exercise or maintaining a balanced diet can add some mental strain to someone’s schedule.

That’s where this company steps in for reinforcement…

Alympos says “We see you and your efforts, keep it up!!👊💯”

Consumers and organizations alike love this because it contributes to a net positive in society. And, the numbers aren’t lying…

🙋‍♂️ 8k+ email sign-ups

As of today, Alympos has obtained over 8,000 email sign-ups.

This early engagement reflects consumer interest and the need for a better health reward system.

🏃‍♂️ Mutually Beneficial Partnerships:

As we discussed earlier, this company has an edge due to its win-win proposal for business partnerships. Being able to leverage the fact that they can increase consumers’ LTV could be a huge catalyst in the future.

Not to mention this company has already received verbal confirmation of partnerships from organizations such as Ironman and Lifetime Fitness. This goes to show even further that the market is aware of this problem and is seeking a solution.

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🚨 Potential hurdles

A crucial aspect of evaluating a company is identifying all the potential roadblocks on its path to success.

This isn’t about tearing down the venture. Rather it’s about formulating a way to hurdle over the roadblocks, or in this case, bench press them out of the way.

With a dash of courage, let’s step into the thorny path…

📕 Regulatory Friction

As we discussed earlier, starting a credit card company is NOT easy. Many different standards need to be upheld on the financial and security side of things.

💹 The Funding Gauntlet in Today’s Economy

With the interest rates being the highest they’ve been since 2001, the struggle to raise a round of capital is real.

Investors are being more selective on who they entrust their money to, which can actually be spun into a positive thing in some circumstances. After all, if you can secure funding in such a climate as this? You automatically get brownie points of credibility.

Alympos is in the process of raising funding to expand the team and make sure they have all eyes and ears on regulatory and infrastructure requirements.

🥇Competitors

Alympos is not alone in this horse race for healthy clientele, other companies in the space include:

Paceline: A cash-back credit card that rewards activity

📦Product: Initially released a card but discontinued it as of February of 2023, now working on launching a new version soon. 

Ness: Credit card rewarding spending on wellness 

📦Product: “Currently in public beta, meaning it’s available to anyone who qualifies, but card features may change”

However, Alympos focuses more on fitness-related expenses compared to most competitors who are more zeroed in on wellness expenses.

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🔮 Crystal Ball Conjectures

I hope you brought your yoga mat because it’s time to stretch out our imagination muscles as we delve into the best and worst-case scenarios for this company.

⛈️ A shadowed outlook

The worst-case scenario for Alympos would be that other companies hop on this bandwagon of rewarding people for good health and fitness practices.

The market would become diluted and Alympos’s unique value proposition today turns into an expectation for tomorrow.

🌄 The hopeful horizon

The best-case scenario for Alympos and its users would be to become the iPhone of credit cards for athletes and fitness gurus alike.

Competitors are bound to arise but this company would hold a majority of the market share and reap benefits for consumers, businesses, and the company itself for years to come.

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Thanks for reading,

Have a great rest of the week!

– Owen