Hello Karim and thank you for taking the time to speak with us to introduce who you are and what Tagspire means to shareholders of Relevium Technologies (TSX-V: RLV)
1) Could you please tell us a bit about yourself and your background?
Prior to founding Quantomic LLC and the Tagspire project, I was the Founder and CEO of Unveillance, the first cloud-based data leak intelligence cybersecurity firm that was acquired by Mandiant in 2012 (Mandiant was in turn bought by FireEye (Nasdaq: FEYE)
Some of our notable clients at Unveillance included:
Accenture, IBM, CSC, Boeing, Kuwait Oil Company (KOC), Kuwait National Petroleum Company (KNPC) and multiple US federal agencies.
Before devoting my work fulltime to defense and intelligence product development, I served as Founder and Chief Executive Officer at Demiurge Consulting, a counterintelligence and countermeasure consultancy whose clients and collaborations include Coca-Cola, TSYS, Baker Botts LLP, McKesson, Palantir, MIT, Berkley and Stanford Universities.
I really enjoy writing and have been guest contributor for Forbes and has been an expert resource to numerous cybersecurity periodicals such as Dark Reading, CNET, The Washington Post, and The New York Times. When Unveillance was at it’s height, when we were scrapping it out with Anonymous and LulzSec, I was highly sought-after and has appeared multiple broadcast networks such as CNN, CBS and NBC. Unveillance’s well-documented battle with Anonymous was profiled in Parmy Olson’s book, “We Are Anonymous: Inside the Hacker World of LulzSec” which has been published in ten languages.
Unveillance had successfully taken down one of the group’s most effective denial of service (DDoS) botnets impacting Sony, the CIA and PBS. Lulzsec’s retaliation included an attempt to extort us for key malware and botnet intelligence. The Unveillance team and I led an effort with multiple US agencies to locate and apprehend the criminals approximately a month later.
When the whole saga was going down, I did these CNN Interviews which really explain the whole situation:
Through Unveillance, I also donated research to Project Cyber Dawn at the height of the Arab Spring. The Cyber Security Forum Initiative, a group whose membership includes military officials, academics and business leaders, put Project Cyber Dawn together. I was one of the report’s 21 co-authors, among them forum founder Paul de Souza and Jeffrey Bardin, a former NSA code breaker. Project Cyber Dawn outlined a strategy to disable a refinery at Ras Lanouf employing a Stuxnet-type designer malware aimed at disrupting the facility's SCADA control systems.
2) What inspired you to create Tagspire?
My moment of inspiration was witnessing the rise of visual platforms like Pinterest, Instagram and Snapchat where immense amount of time and creativity were being spent producing content, however effective monetization of that content was still nascent. The goal was to create a truly immersive, fun and social marketplace platform that would appeal not only to entrepreneurial consumers but to influencers and brands alike. It would embody the highly successful product discovery aspect of Pinterest, the social aggregation utility of FB and the broadcast capability of Twitter and YouTube all coupled with the e-commerce power of Amazon. It was clear that user (influencer) generated content leveraged appropriately and effectively will inevitably be the next big disruptor in retail, not to mention the unparalleled intelligence that could be gleaned from it. That conviction is steadily being validated through the slow but steady movements of Amazon and Instagram.
3) How do you intend to grow Tagspire?
There are a few ways we intend to grow the Tagspire platform. The most actionable at the moment, that is to say, what we want to do first is:
- Grow the AI image capture data set to over 100MM products. We really have a competitive advantage here because we have been training our AI for almost 4 years now and a lot of our direct competitors have less mature systems.
- Fine tune the video overlay technology. Flat out, no one is doing this today. We have to keep building this up
- Start pulling data from the various e-commerce APIs (such as Amazon)
- Start prioritizing where we can/will push sales from the platform (such as Amazon)
- Start building up the large-scale marketing event that will allow us to identify what actions need to be tokenized and reported to an outside blockchain.
4) How will Relevium Shareholders benefit from the Joint Venture with Tagspire?
Relevium Technologies shareholders will benefit in the following ways:
- Tagspire will represent two new independent revenue streams: The first will come from the conversion/sales transactions facilitated by the Tagspire members with their community. The second will come from the sales of the intelligence generated from the actions on the platform to large brands looking for higher fidelity business decision support.
- Tagspire has unique intellectual property - multiple patents and trademarks that have inherent value. This patent and IP portfolio is growing by the day. Since Tagspire has been in the JV with Relevium there already has been value creation. RLV shareholders are going to be the net beneficiaries of all this hard work.
- Tagspire will provide Relevium Technologies a unique, and presently unparalleled, Internet marketing capability and technology for their existing and future brands.
5) How do users of Tagspire generate income?
Tagspire members presently generate income through commissions earned from sales made from tags on their content either manually added by them or added through Tagspire’s artificial intelligence neural network. Members will soon also be able to earn tokens for common actions on the platform like content creation, sharing, commenting, liking, following as well as views and clicks.
6) What does the revenue generation look like?
The revenue generation is through conversions/sales but will soon have the ability to generate revenue from the tokenization of actions. Presently the commission split with users is 80% of commissions earned goes to the content creator and 20% is held by Tagspire. Tokenization value and percentages are yet to be discussed as it is still in early stages there.
7) What do you foresee revenues to be in the next 12 – 24 months?
Based on the following assumptions, this is what we expect in revenues in the next 12-24 months:
- - The model assumes 25,000 starting users (presently the actual approximate user count)
- - The model assumes that a minimum of 20 visitors will be “exposed” to Tagspire by members
- - The model assumes that a minimum of 10 visitors will be “introduced” to Tagspire by members
- - Of the 20 visitors “exposed” to Tagspire, only 20% (or 4 visitors) will clickthrough to the Tagspire app
- - Of the 10 visitors “introduced” to Tagspire, only 30% (of 3 visitors) will clickthrough to the Tagspire app
- - Of the 4 exposed visitors that clicked through to Tagspire, only 15% (or .6 visitors) will convert and signup to be a member
- - Of the 3 introduced visitors that clicked through to Tagspire, only 20% (or .6 visitors) will convert and signup to be a member
- - Only 20% of the entire user base will be considered active* (in the model we interpret “active" as users that facilitate sales).
- - The Average Transaction Size is $40
- - The Average Commission is 10%
- - The model anticipates approximately 1 transaction (conversion or sale) per active user per month
- - We are charging a hefty $75K monthly for our marketing intelligence in the model but based on our research, Axciom and other marketing analysis firms are charging upwards of $100K per month for marketing intelligence that is substantially inferior to ours.
- End of fully Y1: $11,002,956
- End of fully operational Y2: $188,808,130
8) Where do you see Tagspire in the next 3 years?
Based on our current trajectory, I see Tagspire moving heavily into the video space possibly providing an overlay onto mainstream media where users can instantly buy what they see in a film or favorite TV show. Additionally, with the increased adoption of virtual reality and augmented reality, Tagspire is poised to move smoothly into that space and dominate. Tagspire AR (augmented reality) could enable members to look through their phones camera and instantly see floating tags above items/products (identified by our artificial intelligence) in real time and buy directly from their phone screen.
Thank you very much Karim for sitting down with us today and we hope this answers a lot of questions that shareholders of Relevium Technologies may have.
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