Coinsilium CEO on AI deal with Beating Heart and the commercial opportunity

They believe that with AI, they can reduce production of uh promotional videos by from six to eight weeks to three to four days. And the associated cost can could be reduced by 90%.

Hello, you're watching Proactive. I'm joined by Eddie Travia, the CEO of Coinlium Group. Eddie, good to speak with you again. Why is beating heart such an interesting opportunity for Coinlium at this stage?

Hi Stephen, good to speak with you as well. Um, well, as as we said before, you know, now we we are looking at AI as a transformational technology. Um, in a very similar way to to blockchain and what, you know, we're looking at blockchain more than 10 years ago in a in a similar in a similar similar way and blockchain has now proven to be transformative for the financial industry. And we believe that AI has a potential to transform business models of, you know, many major industries.

uh even possibly on a larger scale and sometimes complementary to to blockchain technology as well. So in the case of uh of beating har, we invested in um in a company that is building tools uh solving key problems for various industry, but the first one that they and the one that they know well is is the fashion industry and the creatives in this industry. Um, and to be clear, you know, we are not investing in fashion industry, but we are investing in a AI technology company that is catering to that to that sector.

Um, so this is the the market that they're addressing now. Um, and this is also, as I was saying an area of expertise of the of the founding team which is coming from a very successful fashion brand called Black Paris. And Black Paris, we held them we helped them before uh with their digital venture and so we know the team and we feel confident that they can do well uh with this with this new project uh which is again, AI driven solution for for uh fashion industry and but they also can go into consumer products, e-commerce, social media marketing as as well. Basically all the areas that look for cost effective and high quality content production.

Eddie, the platform platform aims to cut the cost and time of producing commercial content. What problem is it solving for brands?

Yeah, so, you know, what happens is in the we can call it the old world, uh people were actually, you know, filming for example, advertising uh clips for for example, a fashion brand. So you can imagine the the number of costs this can generate, you know, um, and you know, it can include, you know, models can include production costs, uh, you know, material, travel, etcetera and so forth. And all that now with AI, uh can can be made much more cost effective because, you know, beating hard has already some incredible uh clips.

Actually that they have produced some of them for for example for Black Paris where you see models and you see models in a in a city or in a in an environment and it all looks really, really uh believable in a way and it's all AI AI produced. So, you know, there are some very large companies uh that we mentioned. So for example, Zalando is a very large e-commerce company and um, you know, they believe that with AI, they can reduce production of uh promotional videos by from six to eight weeks to three to four days.

And the associated cost can could be reduced by 90%. So, you know, this is extremely important for this industry which is, you know, which is looking at uh cost efficiencies and uh, I think, you know, these kind of tools are going to be very popular and beating heart is starting early and um uh, hopefully will grab a a quite a a significant market share among among the famous brands or the the the the large brands in the in the world.

you're providing up to $250,000 and could end up with about 9.2% of beating heart. What could that investment be worth to consulium if the platform scales?

Well, we we're not in a position to to to give a a precise number or or a range, but you know, when we go into this into this uh type of capital deployment strategies, what what we're looking at is is very large type of blue sky opportunity, let's let's say. So, you know, what we're always hoping for is kind of a exponential upside, uh, based on not only the product, but of course as well, the market itself growing. And obviously, you know, this this is a huge market, you know, in terms of advertising, we're talking to more than about more than $1 trillion dollars of expenditures, you know, of course, advertising globally is a huge market.

So this kind of tools is is part is a subsection of of uh the advertising budgets of very big brands. Uh or as I was saying, e-commerce, which of course is is a is a multi-trillion dollar activity today. So, you know, if they manage to carve themselves a market share in that space, uh we we're looking for, you know, exponential growth. Um, but but, you know, I think I want to quickly come back to what we already announced. So for example, in our annual report, we talked about our uh the sectors that we are focusing on and the key word is frontier technology. So that that's what Consulium is looking at. We have communicated our interest, for example, in AI

and and a large spectrum of technologies including prediction markets. Um, so AI economy and prediction markets are the type of frontier technologies we're looking at. and uh this is an example, this is one of the first, let's say, new post annual report investments that we that we are communicating uh on at this stage.

Uh Beating heart's targeting a commercial launch this year. What what are the key milestones from launch to to proving the subscription model can scale?

So, so going to how we structured this uh this deal, um a lot of the milestones that we normally would expect for a seed investment because, you know, our strategy is always to go very early so we can, you know, capture as much value as we can. So, most of the milestones we look for have been achieved in terms of, you know, the pre-launch part, you know, they rolled out the technology, worked on legal, engage with uh potential partners and so forth. Um so now I think the main uh the post launch main milestones are going to be what we call uh pathway to adoption and obviously, you know, uh clients, number of clients and and and and analyze and assess the minimum spend, etcetera.

Um but I think the interesting part is the way we structured this deal is a convertible loan, which means that it has a 30 more term, which means that on one side, um we are covered for for the risk in the case in the sense that it's a loan, but at the other, but we can make, we can generate a lot of value because if this is converting at the price that we obviously have agreed on already, um 30 months from now when the company is doing hopefully very well, has a product line, client and recurring revenues, um that then we feel that we could have a a very good deal in the sense that by that time if we, you know, we get shares up to as you were saying, 9.2%. But in addition, we also getting shares for the um we we can get shares or cash, but we can, we we we can also get shares for example for the advisory agreement.

Um then overall, you know, we we we we are we could be doing very well on the basis that at the end of this uh conversion long term, the company is going to be in a very, very different place. Um so we are now structuring deals or capital deployment the best way possible to generate as much value as we can to conum shareholders.

Eddie, I hope you continue to keep us updated on progress with the transaction. Thank you very much for your time today.

Thank you, Stephen.

Eddie Travia, the CEO of Coinedum Group.