This is NOT investment advice. Investing in startups is risky whether it is via StartEngine or any of the other platforms. Liquidity may or may not be an option for an extended period of time.
Let's see if we can toss out a few names on a monthly basis for people to debate and evaluate and see if this is useful. At times, we have only one name or zero.
The types of firms that typically catch our attention are generally based on seeking a potential "bet a little, win a lot" approach where we seek potential "winner takes all or most" outcomes. We tend to focus on those and avoid battles with low barriers to entry UNLESS the firm is simply executing at a very high level and clearly advancing to a few different potential exits.
First, a couple of recent posts here on this platform:
When is CHECKMATE - Bitcoin Update
StartEngine Raises That Intrigue Us - March 2024
The Submerge - Ether Merge Debacle
Here is what made it through our screening. We committed to screening these monthly and this is the result of the screening for this month. Some of these are repeat names, and that is the way it is. We don't chase new ones simply to pull the trigger. We would rather add to winners.
Perhaps a little blurb about what we will not invest in could be helpful. When seeking a potential "winner takes all" and vice grip lock on certain economic value, we try to be very strict. We have to feel it and understand it. If we don't "get it" in terms of how and why the pieces fit together, then we pass. This can happen frequently with tech, biotech, medical, and retail. We aren't smart enough to know all of these details for each industry and products. If we can't connect all the dots we pass. If the business relies on hype and marketing we pass.
AtomBeam - We've commented extensively already about this opportunity. Our entry is 8M. A+ is ongoing and doing quite well already.
AtomBeam has revenue, albeit from DoD contracts only at this time. This is very positive in our view since the firm could progress through full DoD cycles (granted it can be slow and frustrating) where the contract dollar values are much higher thus providing non-dilutive financing for the company's growth. Yes, there are costs the company must bear to execute the contracts, but it all aligns with the long term strategy and vision. Not to mention DoD might become one of the biggest customers.
Apparently AtomBeam has signed a commercial customer - meaning nothing to do with the U.S. federal government or grants, etc. The company released the name of the customer: Ericsson. Apparently AtomBeam has been working with them for a while, and expectations should be reasonable. They are rolling things out incrementally so refrain from demanding huge revenue boosts immediately. This is a giant client that could lead to all sorts of things so we will continue to be patient.
Here is an update released recently:
The above is from a pilot program with a non government client named Viasat. The initial reduction is 70% in terms of data going over the satellite. Apparently, this is an initial push that could/should be enhanced even more with full deployment.
Implications here are pretty big, as we have a young firm with great momentum inside DoD, a live commercial customer in Ericsson, and an ongoing pilot with a major player in satellites.
However, there's more. But there's an issue. Not sure we completely understand the new stuff discussed by the company and the CEO, although this is not a bad thing. To this point we have studied the firm extensively but keep landing back in the same spot:
- the data pipes are clogged
- the problem and backlog if you will is getting worse
- AtomBeam unclogs the pipes
Trying to keep it simple, but Neurpac and the implications regarding "compression" are potentially extremely significant. We are still trying to work through a thought venture here to truly understand this, but either way this is all gravy on top.
So, "Compression" is "what we have right now" but it is fundamentally limited. Neurpac is a revolutionary paradigm change to the way data is handled and managed? AtomBeam is to data what Google is to information? Still thinking this through. Draw your own conclusions.
