BUSINESS IDEA | []

AI Content Licensing Platform ©️

Right place, rights time

Available Domain: Datadues.com

1. Problem/Opportunity❓

The Problem/Opportunity: Last Thursday Reddit’s share price surged in after hours trading. Why? Because Reddit had just penned a content licensing agreement with OpenAI, even if some of Reddit’s users aren’t too happy about it.

The deal could yield between $50m to $60m annually for Reddit, if their $60m per year deal with Google is anything to go by. With AI companies needing more and more data to train their models, they’re looking to ge their hands on as much data as possible. So let’s build a platform to achieve this.

Market Size: The global AI training dataset market size was valued at $2.39 billion in 2023, but expect that to at least 10x in the next few years

2. Solution ✅

The Idea: A platform which facilitates licensing deals between AI companies and content publishers

How it Works:

• Companies who want to license out their data sign up to the platform and provide details on their dataset. Licenses can either be open or exclusive, depending on the company’s preference.

• The marketplace, using data from other listings, provides a suggestion for how much their data would be worth to an AI company, which is the listing price

• AI companies looking to license their data can come in and buy a license to use their data or enter into a bidding process for exclusive licensing rights.

• The platform also periodically tests LLMs with prompts designed to unearth whether certain LLMs have used their data to train their models.

Go-to-market: Start by working with smaller AI companies looking for niche datasets to build their model, broker these deals and go from there

Business Model: Take a % of each licensing agreement

Startup Costs: You’d likely need to do a raise here to get this off the ground

Competitors: This is a totally nascent market. Tollbit raised $7m earlier this year but this it still up for grabs.

3. How You’ll Get Rich 💰

Hold: This could be a business that you may hold and work on forever

Exit Strategy: Sell to a large data intelligence platform like Databricks who would want to get into this market

Exit Multiple: You’re likely getting valued on a multiple of forward revenue, so 5x - 7x forward revenue is probably the ballpark here

DRUNK BUSINESS IDEA

Bedtime App

Do you struggle to get your 8 hours every night? Can’t get to bed on time?

Well not anymore. With our new sleep tracking app you get billed for every minute later you go to bed than you should.

JUST THE TIP

Trend 📈: Buying Homes with Friends

Couples today are getting married later than they did a generation ago. Couple this with the difficulty we’re all having buying homes and you get besties buying homes together.

A recent survey by Fairview New Homes found that 44 percent of 18–24-year-olds who have yet to own a home said they would likely buy one with a friend. And the latest data by PACASO, an American company specialising in house co-ownership, shows a 21 percent year-on-year growth in co-ownership among friends and non-married partners.

Business Opportunities

• Credit check app for friends

• Legal consultant for friends buying homes

THE MONEYSHOT

0 → 300,000 Newsletter Subscribers in 4 Months

Newsletter businesses are really awesome.

Morning Brew. The Hustle. TLDR. Milk Road. These newsletters have all become multi-million dollar businesses over the last few years.

But today we’re going to talk about a newsletter that became a multi-million dollar business in mere months.

Meet Rowan Cheung, a former semi-pro swimming athlete whose career took a sudden turn when health issues forced him to quit the sport during the COVID-19 pandemic. Instead of losing hope, Cheung saw this as an opportunity to immerse himself in learning about tech and AI, eventually developing an obsession with it.

Then came the watershed moment for Rowan - the launch of ChatGPT.

He saw how viral ChatGPT went and decided to create a daily newsletter on AI news called the Rundown AI. He started the newsletter in January 2023 and it exploded in popularity. Just 4 months after launching he grew his newsletter from zero to 150,000 readers.

How? Through consistent, high quality content and a relentless work ethic. Many, many AI newsletters emerged around this time but by being the best Rowan has managed to beat out his competition.

Today, Rowan has over 500,000 followers on Twitter and his newsletter has more than 600,000 readers.

Legend!