AI VC Funding: Taking a Cue From MagiScan 3D

The AI boom is taking shape and it might be closer than you think.

Every day, several new use cases of Artificial Intelligence(AI) are reported thanks to the release of OpenAI's ChatGPT in 2022 and the growing number of eager investors that are pouring money into the AI industry.

According to Grand View Research, the global AI market is projected to grow at a compound annual growth rate (CAGR)of 37.3% from 2023 to 2030, representing a significant jump in its current market size value of USD 196.63 billion.

The AI market has continued to attract investments from VC firms around the world and as more and more companies gravitate toward AI, the world's most disruptive technology, the number of investors putting money in the space is expected to significantly increase.

Thanks to the AI race, the United States and China are the two leading countries for VC investments in AI, with the US VC investors accounting for 43% of the global value of VC investments in AI, followed by Chinese investors (20%) and then EU27 investors (9%).

 There are a number of factors that are spurring the growth of VC investments in the AI space. One of them is the increasing availability of data. As more and more data is collected and stored, it is becoming easier to train AI models.

Another factor driving the growth of VC investments in AI is the increasing demand for AI-powered products and services in the world. As businesses and consumers become more aware of the potential benefits of AI, they are increasingly demanding AI-powered solutions.

Despite its potential to bolster investment in the AI industry, AI VC funding still needs a significant boost to meet up with the size of private investment in healthcare, fintech, facial recognition and data management. According to research byEY, VC firms around the globe raised $13 billion in funding in Q1 2023, a figure that pales in comparison to the $78.1 billion raised in Q1 2022.

However, on the growing list of VC firms that are actively investing their money in the industry is the Private Business Club, which recently led and announced an $850,000 investment in MagiScan 3D, the AI company that built a 3D scanner app powered by AI.

MagiScan Seed Funding Round

MagiScan in cooperation with Nvidia, an infrastructure project for Web3, e-commerce, games, metaverses etc., was able to raise nearly a million dollars in the space of one week in a seed funding round that was led by the Private Business Club.

With the round hitting such a significant number, MagiScan was valued in excess of $27 million at an early stage and with a huge potential for growth in the AI industry.

The seed round attracted significant investments from other VCs but the Private Business Club took centre stage as it invested $500,000 of the $850,000 that was raised to hit the ground running.

As a matter of fact, the Private Business Club has the largest private investment in MagiScan simply because it is made up of a diverse calibre of investors such as VC firms, private investors, bankers, investment companies, Rolls Royce members, Family Offices etc.

How Reputable Is MagiScan?

MagiScan's Google Play and Apple Store ratings make it a promising AI company in 3D and AR digital assets, and it has a growing presence in many countries around the world.

Furthermore, it is the first and only 3D scanner technology on NVIDIA that was designed for the NVIDIA Omniverse.

Success Story

MagiScan as a project has successfully received grants from several leading tech giants such as Google Cloud ($250k), OVH ($100k) and AWS ($100k). Most importantly, it has been accepted into the Microsoft For Startups Founders Hub program.

How MagiScan Works

MagiScan is a unique 3D scanner and app on the market, with the potential to serve as an infrastructure project for WEB3. It can be used to populate Virtual worlds and Game universes with high-quality 3D assets that can also be converted to NFT.

With the MagiScan app, you can create high-quality 3D models and export them to most games, metaverses, e-commerce shops, real estate, AR universes and Business Websites. To create a High-Quality 3D model, you need to spend at least 50 hours and a minimum of $100, and have special skills. But with MagiScan you can do it for a few minutes, without any skills, and for less than $1.

The process of scanning and adding HQ 3D objects to Games, metaverse, and E-commerce websites is quick and simple on the platform.

Business Model

MagiScan has a B2C monetization model which includes trial and paid subscriptions that run weekly, monthly, and annually.

And it also has a B2B monetization model for e-commerce, metaverses, games, real estate, tech corporations, designers, artists, NFTs, business websites etc. with a free trial period.

Conclusion

Venture capital investment in AI is bound to grow in size as companies and businesses continue to adopt AI in their daily operations. AI companies such as MagiScan can help drive forward the participation of VC firms by means of their unique selling points, which are mostly technological breakthroughs in AI.