AtomBeam has received a number of questions from investors and supporters about our company, our industry-leading technology, and our raise on StartEngine.
In our recent webinar, we sat down with investors to learn more about our community and answered the most important questions asked from audience members. We want to thank everyone for taking time out of their busy schedule to chat with us!
We appreciate all of the feedback we received from our early backers and welcome you to continue the conversation on our StartEngine page. We look forward to sharing more information with you as we move closer towards our fundraising goal!
How does AtomBeam’s technology work?
“We build codebooks that look for patterns in sample data using machine learning. The codebooks are added to a source and a destination (such as a sensor to a server). When the source generates a file to be sent, AtomBeam uses the codebook to translate the file’s patterns into codewords, which are sent to the destination that uses its identical codebook to rebuild the file exactly as it was before it was sent.”
Are the code books created by each client or just by AtomBeam?
“Clients have a choice, actually. We can do it for them, but most of them want to do it themselves. We have an online portal that any customer can use to create codebooks using their own data, which is pretty straightforward.”
What is the compute memory / overhead for AtomBeam versus a traditional compression?
“If you mean building codebooks, that uses a lot of compute, but that’s not something one does all the time. That’s something that’s done in advance of the transmission, or it might be done as an update. All we’re doing is something in software terms is called a lookup, which is about as light and fast as you can get.
Compression, by contrast, makes multiple passes over every file, looking for these repetitions of pattern, which uses more computing power, generally more memory, and computing time.”
Is AtomBeam patented and can you review your patent position?
“We have seven issued patents, with 5 that are pending. We are continuing to file patent applications.”
Who is AtomBeam’s primary competition?
“There’s not very many companies that sell compression algorithms so we don’t have a direct competitor. Mostly, we say our competitors are companies building faster, bigger networks. “
How many paying clients does AtomBeam currently have and in what applications?
“We’re on the cusp of signing new clients, with several larger and smaller companies developing engagements with us. We have a contract with the Air Force and prospectively more contracts in the near future with DoD and the intelligence agencies.”
What is the top piece of feedback from customers?
“Most of our customers are blown away by the results that they get. They get very excited about the possibilities, which are truly revolutionary. Here is a direct quote from a prospect: ‘You are offering a 50% decrease in data volume, and a 2X increase in bandwidth for all low bandwidth messaging with the added benefit of encryption, search, and retrieval – in theory you could retain the codeword structure in data archives and offer encryption and search without decryption. Is this not revolutionary? Normally a 10% improvement in bandwidth is huge and this is 2X … especially when it impacts mobile – battery powered – devices – if you could double the battery life (perhaps) that would be huge!’
What’s really going on all these big companies really like it and are very excited about it, but they want to see somebody else go first. And we are now working on smaller companies that will jump on board faster, we think.
What has come in the way of securing larger financing outside of equity crowdfunding?
“We have a lot of interest from venture firms. As soon as we start getting some real traction, we’ll believe we will have a number of opportunities from the biggest names in venture capital. At the same time, though, I think I would like to see a corporate investment as opposed to a venture firm taking the lead.”
Does AtomBeam work on IoT data only?
“We have tried AtomBeam on all kinds of stuff and it works amazingly well. Even regular websites have seen up to 60% reduction.
We’ve been approached by two large pharmaceutical companies wanting to know, will this work on genomics data? And the answer is yes; we tried it and it performs as well as any of the genomics specific compression algorithms, and unlike compression, is searchable – a potentially massive boost to genomic research.”
What is your pricing model based on?
“There are two pricing models. One is for end-users. So for somebody who’s interested in using it themselves, AtomBeam is safe for their internal network, and we charge a fixed annual charge for a server license. There is also a volume license that depends on how many machines or sensors are attached to that server. If it’s 10,000 attachments to a server, you might be charging a dollar each per year.
The other model is a deal with a channel partner. I think this’ll turn into our biggest source of revenue. In these, a partner (like a cloud service) offers our technology as a service, and we both share in the revenue they receive.”
What is your exit plan? Do you have plans to initiate an IPO and what are the timelines around that?
“There’s not an exit plan set in stone. As far as an early acquisition goes, I would be a lot less tempted than I used to be simply because I’m seeing strong response in the market. It feels like there’s going to be a big wave coming. And so while you never say never, it would need to be a pretty big number to tempt us to exit in the very near term.”
Have you participated or graduated from any accelerator programs?
“We’ve been in two accelerator programs. One is StartX, Stanford’s accelerator. The second one is Plug and Play. Plug and Play’s focus is making corporate connections.”
What gives you an edge in the market?
“It comes down to this. there isn’t anything else you can do that does what we do, and that is to reduce the size of individual IoT files. There is no other hardware or software that can do this. We are patent protected, and our tech is very sophisticated. ”
What are you using the investment funds for?
“The funding is primarily used for working on software, architecting, patenting, writing it, or it’s being used for marketing and sales purposes.
The real focus here is building out key features of the software, and getting customers.”
What are your seven patents based around and how do you plan on protecting them?
“Our patent strategy is to continue to build what’s called a ‘patent family’ with our core patents, and then around those patents we are building a thicket of related patents that reference the first patent. That makes it tough for would-be imitators.
Our patents were reviewed by one of the biggest patent law firms in the U.S., who told us that they agreed with our approach.”
What software enhancements are being worked on currently?
“There is a short list of things that we’re building now. Some are about optimizing the speed, some are about minimizing the size, and some are features, like the Dynamic Codebook.”
How can investors get involved?
Investors can join our AtomBeam community through our raise page on StartEngine.
If you have any additional questions, please feel free to share them with us on StartEngine, and we’ll get back to you immediately!