We recently held a webinar to learn your most pressing investment questions about Alelo. The top eight questions are answered below.
1. The online training space is crowded. What makes you different?
Most online training solutions are incapable of personalizing learning at scale and are behind the times in technological advancement. Alelo uses AI to create learning products that are uniquely effective in helping people quickly learn new skills. Our patented technology combines simulated real-life interpersonal interactions, automated assessments, personalized instruction, and analytics. Our data-driven, machine learning approach enables us to continuously optimize training to address learner needs. It also helps us maintain our first-mover advantage.
- Do you sell to businesses or consumers?
Businesses. We sell Alelo products to corporations, educational institutions, and governments.
- Where do you see your biggest opportunity?
An immediate opportunity is rapid skills development for healthcare jobs where strong interpersonal skills are critical. In the first half of 2021, we will release a certification program for Community Health Workers (CHWs) who are tracing COVID-19 contacts, promoting vaccination compliance, and more. There is enormous short-term growth and revenue potential in expanding to CHWs dealing with aging patients, patients with neurological disorders, and hospital-discharge patients. Alelo CHW programs will cut certification time in half and arm workers with communication skills to be productive in the field faster. Longer-term, there is massive potential to expand to industries such as hospitality and retail where the challenge of readying front-line employees for real-life customer interactions – at scale and cost-effectively – can only be met with advanced AI technology such as Alelo’s.
- Why should I invest in your company?
Because education and training is a trillion-dollar global market with outdated learning methodologies and inadequate technological solutions. The pandemic has accelerated the move to software-based learning, and Alelo brings a technological offering unmatched by any competitor. Furthermore, Alelo passes four risk criteria often used by angel investors and venture capitalists. First, the market is very large. Billions of workers and students worldwide lack the training and education they need due to the high cost of quality learning. Second, Alelo has the right team. While small, Alelo’s team is experienced in the areas that matter – technology, pedagogy, marketing, sales, and finance. Third, Alelo de-risks the production of its technology solutions. We invented AI-based avatar technology and have demonstrated with over 500,000 learners that it can be implemented effectively and efficiently. Fourth, we are financially stable. Alelo has a 15-year track record of prudent financial management.
- Will you allow companies to develop their content on your platform and white-label learning?
Yes. There are two ways we make money: develop courses and sell subscriptions, and license our platform and help organizations develop their content. Ideal partners for licensing Alelo’s platform include educational publishers, enterprise organizations, and government entities.
- Who are your main competitors?
Our products compete with traditional training methods like classroom instruction and static online learning. For this reason, we see our competitors as potential partners who can modernize their offerings by integrating Alelo’s advanced technology. Companies like Duolingo and VIPKid in the language space or Udacity and Coursera in the training and development space have solid programs, but they lack capabilities that only Alelo’s AI-based avatar simulations can provide. Rather than compete with them, we would like to empower their content with Alelo’s technological innovation.
- Do you amortize the initial development costs of new products and if so how does amortization affect profitability?
We amortize products that we develop ourselves and sell directly to a market. We invest the development dollars upfront and recover expenses through subscription fees. The objective is to scale usage quickly from multiple customers to generate revenue and lower cost-per-user for operating the service. If an organization requests custom development, we recoup all development costs upfront.
- What is your global footprint?
Alelo language and culture products are expanding globally. Latin America is an area of focus due to the low barriers of entry. There we have both resellers and direct customers. We added resellers in the Arabian Gulf, Scandinavia, Southeast Asia, and South Africa in the last year. Growth plans include Europe and eventually China. In the U.S., Alelo’s culture and language training are mandatory for military personnel deploying to 86 countries.