RealSpeaker - Executive Summary

(www.realspeaker.net audio-visual speech recognition)

RealSpeaker Inc: 19901, 11 South Dupont, Dover, DE,

USA

E-mail: ovi@realspeaker.net

Company Details: - Founded in January, 2012

- 5 employees

- Ownership: Private

Funding:

- Current Burn Rate - $1M

- Seeds Round: $0,5M in 2012-2013

o $0,3M – in 2012

o $0,2M – in 2013

- Seeking 1st Round: $1,0M

Use of Proceeds:

- To transfer base from local to

flexible server, creating more pure

architecture with Web 2.0 language

base principle

- Support opportunity to download

and analysis audio-video files

- Checking of business model

Product Development Cycle:

- Development began in December

2011

- Beta – 9th of September 2013, at a

cost of development of $0,3M

- Breakeven point – November 2013

- Commercial Production expected to

begin in August 2014

o Funds required from Beta

testing to production

expected to be $0,5M

- Funds required from commercial

production to profitability expected

to be $0,5M

Revenue: - 2012: $0,025M

- 2013: $0,1M

- 2014: $1M

- 2015: $15M

- 2016: $100M

Competitive Advantage: - High accuracy speech recognition

- More safety

- More usability and cheaper

Management Team:

- CEO/Founder: Viktor Osetrov

ru.linkedin.com/in/realspeaker/

- CTO: Artem Smirnov

ru.linkedin.com/in/temasm

Company:

RealSpeaker Lab develops the audio-visual speech recognition

application RealSpeaker.

Our solution uses additional video information, which allows as to

improve voice recognition accuracy by at least 20-30 per cent. This

makes our patent pending technology way ahead of existing

competitions.

We have released beta version of our product for Windows OS, which is

currently in use by about 250k users, out of which 2k users are paid

users. In this year we are going to reach over 1M downloads with a

revenue over $1M

Marketplace:

According to TechNavio currently, only 15-20% of the speech

recognition market potential is used. The total expenses on speech

recognition technologies developing in the world in 2010 were estimated

at $1000M and in 2010 the speech recognition market will reach the

point of $2500M (+25% per year) in 2016.

Problem:

Today most audio speech recognition solutions have severe limitations,

such as: sensitively to background noises; difficulties’recognizing

individual words; users must speak in an un-natural fashion using

fragmented speech; they required broadband Internet connectivity; and

with an accuracy of less than 60%, not saying that they are painful to use.

Product Offering:

RealSpeaker addresses the problem by enhancing the speech recognition

with video analysis of the user’s lip movements. With RealSpeaker you

can: enter text of any length with the voice and video without keyboard

at any text editor or website (Notes, Facebook, Skype, Evernote, E-mail

and Microsoft Office etc.); Support of 13 main languages; Some

functions of voice navigation (editing and sending).

Differentiation:

US Patent 13/942,689: “System of video enhancement for audio speech

recognition solutions to improve the accuracy of audio speech

recognition due to the analysis of speaker lip movements”

Partners: Our team is supported by such organizations and institutes as Microsoft

Seed Fund, Skolkovo, Startobaza, Kazan IT-Park, StartupSauna and 2

business-angels from the US. We have NDA with Samsung, LG, Toyota,

Itouchu. Right now, we are looking for partners as well as investors for

our round "A" which will be used to further R&D and marketing.

Business Model: Try & Buy

Free version – can recognize speech to text for 3 days;

1 % conversion. 250 k free users, 2 k paid users in April of 2014

Paid version for: 1 month ($12), 3 months ($26), 6 months ($31), 12

months ($44), unlimited time ($89)

We have special panel for software vendors.