‘TREP TALK sports reports etc., Narrativa is pitted against growing competition in the field globally, but that doesn’t seem to worry Llorente. “Very few companies are using AI, and they use a rulebased approach instead.” He adds that compared to systems using rule-based methodologies, those building natural language-generation AI (like Narrativa) “have the advantage of being learning systems.” This “learning” feature is perhaps why Narrativa also allows customers to customize the technology using a platform they have developed. “Customers can train the technology by adding new example narratives, so the technology learns the writing style of the customer,” says Llorente. In this way, the system enables users to define the structure of the narratives.
IMAGE CREDITS: NARRATIVA
“Customers can train the technology by adding new example narratives, so the technology learns the writing style of the customer.”
Interestingly, while you may think that emerging markets like the MENA would be a few years behind in the adoption of futuristic AI, Llorente says that Narrativa sees this region as one with the “biggest” growth potential. “The MENA region counts over 350 million people, and the total online content in Arabic is less than 2%,” Llorente notes. “There is an increasing need and appetite for content in Arabic.” He points out that that the startup is the “only company in the world” currently generating narratives in Arabic, and this gives them a clear advantage and differentiation. Narrativa’s business plans also reflect this belief. “By Q2-2017
[second quarter of 2017], we want to sign four more medium/large customers in the MENA region, and another four in Europe and USA combined… By the end of 2017, we expect to hit revenues of over one million [dollars], and by the end of 2018, we expect to triple that amount.” To help them edge closer to these milestones, Narrativa has already raised over US$250,000 in investment from investors, including Next Media Accelerator from Germany and Flat6Labs from the UAE, with Llorente also pooling in his own money for his enterprise. The startup is also looking to raise $500,000 currently. “We are looking for a decisive and savvy investor who shares our vision and who is willing to, together, disrupt the digital content industry,” says Llorente. And how has the hunt been so far? Llorente says that as technology gets “more complicated,” the process also becomes harder. Investors insist on validating the business by running pilots, which, inevitably, gets costly and slows things down. However, that has not deterred the team, which has been running pilot projects and demonstrating the capabilities of their
products to MENA’s investors. As for the emergence and growth of businesses based on AI and associated technologies, Llorente feels that time is ripe for such startups to take a shot at venture capital and institutional money, and grow across sectors. “AI and machine learning have not really changed much in the last 40 years; what has significantly changed is the amount of data available to train the systems and an incredible computing capacity that allow us to speed up the training of AI,” he explains. The entrepreneur also believes that AI, along with big data and the internet of things, is helping solve problems that were “previously irresolvable” and hence is impacting status quo across sectors. One thing, however, appears to be a recurring theme in any AI business- job roles being done away by rise of automation. Though unnerving, it is a result of the complex times we live in, a phase that the World Economic Forum calls the “The Fourth Industrial Revolution,” which looks like it’s here to stay, and Narrativa wants to make sure that it is well poised to be a leading company in such a world. David Llorente, CEO, Narrativa at 48 Forward
David Llorente, CEO, Narrativa
Why did you decide to start up in the UAE, and why did you align with Flat6Labs? “We analyzed different business opportunities around the world and, as explained before, MENA region is probably the biggest opportunity worldwide for automatic content generation. Flat6Labs is the perfect accelerator program to join and enter the MENA region. Flat6Labs comes with the support of twofour54 and has an incredible network across the region. Also, [Flat6Labs] comes with top mentors and incredible facilities and staff. Flat6Labs gave us access to customers and investors and helped us to understand the peculiarities of the markets. The UAE is a very stable and well-run country with a need to diversify their economy and with a great appetite for innovation and disruption. On the other hand, the free zones allow international companies and startups to operate within the region with the maximum guarantees and with almost no bureaucracy.” What tips would you offer for entrepreneurs to start a business in the MENA region? “First, you need to create a network of contacts and it is crucial to be present in the region. Trust and reputation are key factors to succeed, and you will need to work hard to gain both. Second, you need a local partner. This is crucial in order to understand better how things work plus [it] will help you to open doors. In our case, the partner was Flat6Labs; however it can be a co-founder, investor or even a customer. Third, it is crucial to understand that the MENA market is a winner-takeall market and has only place for winners and being second is not an option. Investors look for investments with very large returns and no investor within the region will trust you if you are not able to prove that you can grow fast and take all.”
february 2017 Entrepreneur
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