Replai is an early-stage technology company that supports the esports industry. Founded by João Costa and Francisco Pacheco, Replai “uses artificial intelligence to create short videos in real-time and increase the value of esports’ audiences.”
Founded in September 2019, the company allows streamers/content creators to create highlight packages in real-time. “Replai uses advanced artificial intelligence algorithms to automatically put together a set of highlights from any Livestream competition, creating custom-made clips for each social network to maximize audiences and generating revenue for sponsors and advertisers.” (eu-startups.com)
Benefits to the esports industry
Replai allows organizations to create short video clips such as highlight packages instantly. This benefits the industry as it provides easily consumable content which allows esports to grow as an entertainment medium. From a financial standpoint, it offers additional sponsorship activation opportunities. Replai will allow brands to expand their audiences with readily available, curated videos clipped from live streams.
Competitors to Replai include Grabyo, a cloud-based platform that allows for live video clipping. Another competitor to Replai is Flowplayer. Both Grabyo and Flowplayer allow users to clip live streams manually. The differentiating factor for Replai is that the company uses artificial intelligence to immediately create applicable content. The competitors require manual editing and will not allow clips to be as immediately available.
Financial Overview of Replai
According to Crunchbase, Replai has raised a total of $1.3 million. The primary investors of Replai are BrightPixel (an early-stage venture capital firm), Ideias Glaciares (an early-stage investing firm), and Clever Advertising (an online advertising company).
Replai is a company with potential as immediately available, curated video content can help esports organizations and brands increase their audiences. If the company is able to acquire and keep clients, the value of the company could increase significantly. The main risk for Replai is that organizations decide they prefer to create their own custom content rather than rely on artificial intelligence to create it for them.
When valuing a business, there are three approaches that can be used: cost, market, and income. The cost approach is focused on a company’s balance sheet and tangible assets. For an early-stage technology and services company, the cost approach would not be useful as it does not consider intangible assets.
The market approach considers internal transactions, private market transactions, and acquisitions of private companies by public companies. When analyzing Replai, the market approach is most applicable. The company’s most recent fundraising round of $1.3 million is a good indicator of its current value. As Replai establishes itself further, it can be compared to companies that have similar operations.
The income approach relies on analysis of a company’s income and cash flows. The most well-known income approach method is the discounted cash flow method (DCF). In a DCF, cash flows are projected for a set period and then discounted to present value. The income approach is not applicable to Replai as the company does not have historical financial records and projections would be speculative at best.
Replai is an exciting company that recently raised $1.3 million. The company’s artificial intelligence allows clients to instantly create clips and highlight packages for followers to consume. The company’s value proposition lies in two primary areas: growing esports audiences by expanding the industry’s entertainment value and increasing sponsorship opportunities for organizations.