Today we're looking at RAD AI, an AI marketing platform built to help brands  get the right content in front of their ideal customer and ultimately deliver more campaign ROI.

AI is all the rage these days, but RAD has been doing AI since before it was cool.

They analyze conversations between real humans to translate marketing gibberish into authentic content. It's creative intelligence that brings new standards to how brands connect with their target customer.

These guys have a strong history of fundraising. Their valuation has increased from $5m to $56m in less than 3 years, and are about to go on a M&A buying spree to increase their valuation even further.

Summary

• Investment type: Priced round

• Accreditation: Open to both accredited and non-accredited investors.

• Location: Worldwide, except Canada (sorry!)

• Minimum investment: $499.95

• Hold period: Long-term. Potential acquisition or IPO in the coming years.

• Bonus: Invest by January 10 and receive 10% bonus shares.

• Link: radintel.ai​

Table of Contents

• The messy world of Martech

• What RAD AI does

• What problems does RAD AI solve?

• How RAD got here

• A strong history of fundraising

• RAD AI's team

• What sets RAD AI apart?

• Enterprise wins & partnerships

• GPT-4 integration

• Case study: AI vs regular content

• 2024 M&A plans

• What we like

• Potential risks

• Closing thoughts

The messy world of Martech

We don't need to tell you how important marketing technology is. The industry is worth a whopping $155b in the US, with a CAGR of 44% over the past 12 months.

You'd think that with so much money pumping into the industry, marketing optimization wouldn't be an issue, right?

Well, in reality, content marketing is still a black box of confusion. All businesses want to find something that resonates but are usually way out of touch with what people really want: authenticity.

​33% of marketing budgets go to waste — that’s almost $75b each year. People are bombarded with lazy, numb ads which get ignored and deleted.

What RAD AI does

RAD AI believes they have the key to accurate, authentic marketing and better content ROI. They know customers want to be spoken to, not at. Their platform uses AI to tell businesses not just what content to make, but also why.

The backbone of RAD's authenticity is its artificial intelligence, which analyzes what real people on the internet are saying.

It all begins with data partnerships the company has with industry heavyweights like Reddit, TikTok, Google and Meta. 

As most of us know, authentic content and conversations between real people sharing their honest experiences, opinions, and feelings are what drive a reaction. This is why RAD built an AI to analyze and understand what target audiences care about most.

Think Reddit comments, Twitter statuses, and blog posts. RAD AI takes all this noise and wraps it into a neat, digestible package that businesses can use to create authentic marketing campaigns.

And the cool part about RAD AI's tech is that it offers intelligence before the business starts its marketing campaigns.

See how RAD AI works →

What problems does RAD AI solve?

RAD AI helps marketers craft unbiased content for social media, paid advertising, and influencer marketing. 

This innovative approach has been tailored for the influencer marketing domain as an entry point to larger enterprise budgets and allocations. 

Eradicating bias

Prior to RAD AI, biased decision-making for almost any digital marketing program was practically industry standard.

RAD AI has the capability to scrutinize extensive historical content patterns across various channels, which helps eradicate bias in creative direction and content creation.

This is achieved by diving into historical content patterns and "training" the AI to formulate accurate brand personas.

Marketing comes down to knowing your audience. RAD AI's reliable, AI-informed personas become instrumental in directing content for influencers and paid advertising.

Influencer discovery

Influencer discovery is a critical, time-intensive part of any influencer marketing activation. Yet, present market solutions offer mediocre influencer search and discovery results.

To tackle this, overpriced agencies currently deploy costly resources to substantiate the recommendations they present to their clients. This means inflated fees and ROI ambiguity.

RAD AI analyzes topics, voice tone, sentiment, audience demographics, and engagement to deliver score-based recommendations (not wild guesses).

Content strategy

Content creators face the challenge of ensuring their work aligns with a brand's messaging and resonates with the intended audience. RAD AI can evaluate and rate content, images and videos based on the predicted impact on the target audience.

RAD AI has developed models that engage in a comprehensive analysis of crucial elements like emotion, sentiment, and authenticity. This approach enables content creators to make informed decisions.

How RAD got here

In the tumultuous times of the 2020 pandemic, RAD raised $977k from 1,000 investors, chalking up a modest success in its maiden crowdfunding attempt.

A pivotal moment for RAD came in late 2021 with the acquisition of Atomic Reach, a Toronto-based company with a specialization in AI that influences behavior and outcomes through language.

They identified the big issues within influencer marketing and content creation, and anchored their focus on influencer marketing — a sector ready for disruption and with accessible campaigns and budgets.

A strong history of fundraising

• RAD’s second crowdfunding pursuit in January 2022 raised $6.61m (many of them Alts subscribers!) and landed in the top 1% of crowdfunding campaigns for 2023.

• Fast forward to the precipice of 2024, RAD has successfully raised a total of $10.1m, plus an additional $17m which has been invested into the AI technology independently via Atomic Reach.

• Their valuation has increased from $5m to $56m in less than three years.

Today, propelled by over 6,000 investors, RAD AI is poised to launch a +$20m Reg A+ offering in the coming months. You can get in now and if you invest by January 10, investors receive 10% in bonus shares.

Invest in RAD AI here →

RAD AI's team

​Jeremy Barnett is the CEO. He is a three-time founder and co-founded the fashion tech company Trendy Butler in 2013, which reached an ARR of over $35m within three years.

In a recent coup, RAD AI welcomed Alex Wissner-Gross to its team. Alex has a PhD in Physics from Harvard University, 23 patents, and is an investor and/or advisor to technology companies valued over $600m. 

What sets RAD AI apart?

Content authenticity is king when it comes to marketing. But in order for companies to know what's “authentic”, they need exposure to what the customers are actually saying.

The framework for RAD AI’s success is a $20m R&D investment.

This focus on creating a powerful product is where RAD AI gains its competitive advantage. The proprietary AI tech, acquired from Atomic Reach, is what’s helping power adoption with some of the biggest brands in the world.

RAD’s artificial intelligence even beats Google’s language AI BERT by 30%.

The tech is powerful enough to scrape information from over ten years of historical data,550m web pages and data sets from an extensive network of API partners to create reliable, unbiased and authentic marketing campaigns.

The team also has a grant from the Canadian Government, which subsidizes  40% of development costs. This has helped ease the cash burden of building a sophisticated AI made for enterprise adoption. 

Enterprise wins & partnerships

RAD’s 2023 strategy emphasized brand education and adoption, resulting in unprecedented partnerships with top-tier global holding companies and enterprises (details to be announced in Q1 ‘24) 

As part of the agreements, RAD AI’s technology will be used to  guide complex content decisions across a broad group of global enterprise clients.  

Material benefits worth noting:

• Unrivaled access to new markets and industries for ongoing product adoption.

• Increased brand visibility amongst enterprise client bases across public policy, healthcare, B2B, CPG, hospitality, entertainment, food and beverage, gaming, fashion, beauty and more.

• Recurring revenue generated from partnerships will materially impact 2024 projections.

Going forward, the team is looking at meaningful expansions with Hasbro and Sweetgreen alongside new activations with Skechers. 

Their 2024 pipeline is robust, featuring names like AT&T (NYSE: T), GSK (NYSE: GSK) and Papa Johns (NASDAQ: PZZA).

GPT-4 integration

RAD recently integrated GPT-4 into its product offerings to take client and product functionality to the next level.

They basically take GPT-4 recommendations and score them based on how their own AI predicts each creative concept will perform.

Case study: AI vs regular content

RAD’s own research has demonstrated that AI-driven marketing campaigns significantly outperform others.

One of RAD AI's most successful campaigns was for a major company in the entertainment industry, who wanted to measure AI vs non-AI content.

The business saw an impressive 3x ROI over their previous marketing efforts.

The process

To get that 3x ROI, they had to go through a few steps:

1. First, RAD AI used its technology to perform pre-campaign analysis by browsing Reddit, TikTok, Instagram and other social media outlets, to find the perfect target audience.

2. Once the audience had been identified, it was time for RAD AI and its client to develop a content strategy.

3. Finally, the content for the marketing campaign was created and distributed across multiple media channels.

In this case, RAD AI managed to identify micro-communities — an incredibly important segment for entertainment providers to tap into.

The results

• The business recorded a 197% increase in engagement rate with content.

• The creation of 397 content pieces.

• Over 6.8m impressions.

• Over 750k engagements.

In a similar case, a client in the men's vitality industry was starting a new marketing campaign with written, visual, and audio elements. They went to RAD with the idea that they should target men in their 40s and 50s who may have some trouble...er, getting it up. 🍆

But as it turns out, this wasn’t actually their biggest market. It was 20 to 30-year-old men. (Yikes!)

If you think about it, most older men with performance setbacks are probably going to see their GP. But RAD AI realized that younger men building their careers and who were always on the move may need that extra little edge.

RAD AI gave the company valuable demographic data to guide them during targeting.

Here’s a video showcasing RAD AI in action:

Read more about the AI →

2024 M&A plans

RAD AI is embarking on an ambitious buying spree.

Building on their current crowdfunding round valued at $56m, they have plans to launch a larger +$20m round in the coming months.

Funds will be strategically deployed to acquire smaller agencies,

The goal is to integrate them with RAD AI's technological solutions, and consolidate their market position.

Agencies lacking AI capabilities face a significant disadvantage, presenting RAD with a remarkable opportunity. And their technology is poised to enhance critical aspects of agency operations, from new customer closing rates to client value and retention.

They say their first M&A target is already identified, with a closure expected in Q1 of 2024, and there are more targets in the pipeline.

What we like 🤩

• Industry strength: Investments in AI companies are booming right now. This can increase the odds of a future successful exit — whether through an increased valuation in subsequent funding rounds, acquisition, or IPO.

• Total Addressable Market: RAD AI’s 2024 estimated revenue of $5.1m is just a fraction of the overall $155b spent annually on advertising in the US.

• Client traction/market fit: RAD AI already has clients using its services, which have produced impressive marketing campaign results. There is clearly a market for what RAD AI offers.

• Recurring nature of revenue: SaaS clients often sign multi-year contracts, ensuring long relationships. Companies are often hesitant to eliminate/switch SaaS products that they rely on.

• Constant updates. RAD is busy with new product updates (like RAD Visual Art), and communicates each one extremely well.

• Solid backing. They have backing from Fidelity Investments, ($4 trillion AUM) and have been featured in Bloomberg, TechCrunch, Nasdaq.

Potential risks 🤔

• Risks of startup investing: Any investment in a startup is risky. Though RAD AI has shown impressive early results, there is no guarantee that they can scale to profitability and continue to win market share/customers.

• Customer concentration: RAD AI’s current revenue base is concentrated amongst eight customers. The loss of one or multiple of them would significantly impact revenue and extend the timeline to profitability.

• Marketing/R&D spend: Like other SaaS companies, RAD AI will need to continue to spend significantly on R&D (improving their product) and sales/marketing efforts (extending awareness of their product and sell/upsell to increase their customer base).

Closing thoughts

Can AI content still be authentic? RAD AI thinks so.

The demand for authentic content that can generate an emotional response is obvious. Venue promoters, sports leagues, and hospitality companies are just some of the industries crying out for marketing innovations. RAD AI is offering access to artificial intelligence that understands emotions and delivers authentic content for the entire marketing mix.

The team's devotion to the technology is clear. The company's future success will depend on how well they continue to develop and implement it across various sectors.

Of course, investing could be risky (again, that's startups for you). But their management has an excellent track record of taking businesses to exit. There's no reason that RAD AI won't be the next successful business to join their glowing (and growing) portfolio.

Bonus Offer: Invest by January 10th and receive 10% bonus shares.