Proto 🌐

Setting the Scene

• Traditional digital communication methods often fail to provide an immersive and engaging experience, leaving a void in how we interact online.

• Here are a few examples:

  • Zoom fatigue in the workplace or learning environments leads to disengagement.

  • The absence of nonverbal cues causes misunderstandings.

  • Virtual events can feel isolating, disconnecting participants from a sense of community.

• This week’s company bridges the gap between digital communication and physical presence, with a real-time holographic product.

In a Sentence

Proto is a digital communication and spatial computing technology company that enables real-time holographic interactions for a more immersive experience.

• Communications: Beam live and pre-recorded content to hologram devices, giving users a two way communication or a mixed media experience.

• Spatial Computing: In addition to the hardware, Proto boasts a proprietary tech stack that includes a holographic display, operating system, cloud services, AI, and a comprehensive app ecosystem..

The Basics

• Industry: AR, Digital Communication, AI, Spatial Computing

• Headquarters: Van Nuys, CA

• Year Founded: 2019

• Employee Count: 60

• Notable Investors: Tim Draper, True Capital Management, Christies, Cartan Capital, Mike Walsh, Jillian Manus, Howie Mandel, and Paris Hilton.

• Amount Raised: $22M post Series A

• Currently Raising: $5M strategic convertible note with $3M committed; capital will be used to scale their new LUMA device

• Business Model: B2B or B2C hardware sales or lending, software licenses, and percentage of revenue on third party apps

• Early Traction: 250 customers, $28M in sales over the past 3 years, cash-flow positive, some customers include CBS, Christie’s, Nets, Colts, St. Judes, T-Mobile, Verizon, and more.

IN PARTNERSHIP WITH

• Crafting your startup’s cash management strategy? 

• First, divide your funds into three categories: liquid, short-term, and strategic. 

• From there, it’s about optimizing for risk and yield according to those time horizons. 

• But how much should you put in each category?

Due Diligence

WHAT WE LIKE

• Market Opportunity: Proto plays in the $25B digital display and signage industry, forecasted to grow 21.4% annually over the next eight years.

  • Additionally, Proto has wide market application in industries such as retail, corporate use, education, hybrid events, healthcare, and much more.

• Defensible: With the development of the world's first holographic operating system, alongside a comprehensive content management system and patented content capture technology, Proto establishes a formidable moat against potential competitors.

• Artificial Intelligence: Proto's incorporation of AI-driven avatars and content creation tools enhances user interaction and paves the way for personalized and scalable holographic experiences.

POTENTIAL RISKS

• Cost and Accessibility: The high cost of advanced holographic technology may restrict access primarily to well-funded organizations, potentially limiting Proto's market penetration and the democratization of holographic communication.

• Adoption: Businesses and consumers may view holographic technology as a futuristic luxury rather than an immediate necessity, potentially slowing adoption rates.

• Education: Proto's innovative holographic technology may face slowed adoption due to the need for extensive customer education on its use, which could impact how quickly it becomes integrated into everyday practices or business operations.

Founder Profile

• David Nussbaum, CEO: Experience in the Hologram industry for 8+ years, first employee of Hologram USA, and has worked with Universal, CBS, and Sony Pictures

• Doug Barry, COO: Former senior executive at EA, Turner, TIVO, Liberate, and GlU; Founding VC for Pandora, Bigfiix, Rightsflow, and Coremetrics, and founded and exited Cobalt Card

• Edward Ginis, CTO: Former CTO of Concord Music, and developed a hardware and software platform for Google VR, and Concord Music.

Comps

• Light Field Labs: Backed by Samsung Ventures, LG Ventures, Verizon Ventures, and others

• Kaleida: Raised crowdfunding in 2016 

• Holoconnects: Division of Basticom

• AxiomHolographics: Backed by INP Capital and the Australian Government (Landing Pads)

• HyperVSN: Backed by Mark Cuban, Richard Branson, and other angels

Events Board

The week of SXSW in Austin

• Bulletpitch x Antler Tech Carnival: We already have 500+ applications to attend our event on March 11th. This is going to be HUGE! We will begin accepting attendees today, so if you haven’t already: Sign up here.

• Secret Breakfast Club: On March 12th, we are co-hosting an intimate morning for GPs, partners, and select founders. If you fit this description, please sign up here.

Upcoming Bulletpitch Industry Dinners

• March Stealth Founders Dinner, NYC: Reply to this email if you are a stealth founder and interested in joining.

• April Consumer Dinner, NYC: This one should be fun.

Cast Your Vote

Last Week Today

• The Results are in: Shader, an AI-powered app enabling instant text-to-AR customized lenses and effects was slightly unfavored.

• Subscriber Feedback: “Great concept, but I fear this may be more of a feature than an app.”

✍️ Written by Brett 

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