🪄 4 Generative AI SaaS Trends for 2024

PLUS: Download Streaming Videos using Chrome Extension

Author

Startup Spells 🪄
August 19, 2024

Hey,

The Spells Master is back!

Welcome to the 135th issue.

Today's topics:

  1. 4 Generative AI SaaS Trends for 2024

  2. A tool for Downloading Streaming Videos

  3. One recommended video on IP Pools

Generative AI SaaS has shown tremendous growth over the past few years.

If you ride this wave, you are bound to be a millionaire or a multi-millionaire.

1. Text to Text

Open AI's GPT-3 launched around June 11, 2020.

Founders who used the API to build SaaS went from millionaires to multi-millionaires.

  1. Copy AI - It crossed $100k MRR in just 223 days. And they reached $10m ARR in 2022. It shouldn't be a surprise if they've crossed $20m-$25m ARR by now.

  2. Jasper AI - Launched around the same time as Copy AI but they used FB Ads which they've mastered over their previous ventures to grow it into a behemoth of $72m ARR by 2022. It was expected to reach $90m ARR by January 2024. They've probably crossed $100m ARR by now.

  3. Headlime, Snazzy, Shortly, Nichesss - Most of these startups had solo-founders who got a million-dollar exit in the fastest amount of time as they were riding a wave. Jasper AI, formerly Jarvis AI (and before that it was Conversion AI) acquired most of these to reduce competition and its safe to say it worked. Shortly and Headlime sold to Conversion AI (now Jasper AI) while Snazzy sold to Unbounce AI. Nichesss made the cheapest alternative and probably made close to a million.

2. Text to Image

In 2022, Text to Image became mainstream giving birth to a lot of startups.

  1. Midjourney - Generates the best-looking AI images. It can convert natural language prompts into images. It was at $100m ARR with around 10 employees and now has $200m ARR with only 40 employees.

  2. Photo AI - Allows you to create beautiful AI photos without using a camera made by solopreneur Pieter Levels which allows you to generate AI Avatars and has made around $2m+ since launch. It currently sits at $60k MRR.

  3. Headshot Pro - Allows you to create AI-generated professional business headshots, created by Danny Postma who sold his previous startup Headlime AI to Jasper AI. It is probably a $2m+/year business.

  4. Lensa AI - It did AI Avatars 35 days after Pieter Levels and Danny Postma yet their distribution allowed them to make over $40m using very little time. Remember, they are the ones who made the Prisma AI app that went viral many years ago.

  5. Aragon AI - It dubs itself as the most realistic AI headshot generator. Its currently at around $5m ARR as of April 2024.

3. Text to Music

Around 2023, Text to Music became mainstream.

  1. Musicfy - It grew to $1.5m ARR in just 8 months. Its on track to hit $3-5m ARR.

  2. Suno AI - It is building a future where anyone can make great music and has raised around $125m. The music is too good. This should be a unicorn aka billion-dollar company.

4. Text to Video

Around June 2024, Text to Video is starting to look good. It still looks a bit fake but it should be ready soon.

  1. Arcads AI - Generates AI Ads that go viral on TikTok. Revenue is not known but I'm sure its ready to print when all the missing capabilities like proper lip-syncing get fixed.

  2. Runaway ML - It allows you to generate realistic videos. It is valued at $500m.

  3. HeyGen - It allows AI-powered video creation at scale. It was at $35m ARR around June 2024.

Ride the AI wave to get rich.

A tool for Downloading Streaming Videos

HLS Loader is a tool that allows you to download streaming videos.

I used it recently to download videos on Circle.so that were streaming with .m3u8 extension.

This video covers IP Pools.

If your emails ever went to spam, you need to understand the concept of IP Pools.

This is possibly the best video on the topic.

Top Tweets of the day

1/

Do not underestimate UI/UX.

OpenAI became mainstream thanks to ChatGPT.

Claude became mainstream thanks to Artifacts.

The technology was already there but UI/UX wasn't.

2/

Your favorite marketers' favorite strategy is to copy ads from different industries.

You can even go one step further and copy skits from standups or copy high-performing ads in other languages into English and vice versa.

3/

Building a business on top of a 3rd-party platform is extremely risky yet incredibly rewarding.

Everyone loves to visualize stats because raw data doesn't make any sense.

Human-readable data apps that make sense of such data are incredibly lucrative businesses. Few people have made a great amount of money building analytics apps on top of a single-platform.

Rabbit Holes

  1. How I Made $50k Affiliate Marketing on Stan Store (even as a stay at home mom) - Be the #1 when a new platform launches so you grow when it grows. Stan Store is one such new platform. It launched in 2020 but it is everywhere now. And yet another way to make money for a new platform is to create content for that platform and use an affiliate link. There are content creators who've made $100k+ per month by just promoting new platforms like Stan Store. The benefits are you don't need to sell any product or handle support. You get to just print money. Be on the lookout for a new platform related to AI. It should be here in 1 or 2 years.

  2. Underrated B2B Content Marketing Tactics - This PDF shows a shift from logos to faces. B2B is changing and unless you adapt, you will struggle as a brand.

  3. Crafting a Blazing-Fast Audio Transcription App with Groq's Whisper v3 - You can wrap the 100 lines of code in this blog post to create a single-feature Micro SaaS. Turboscribe AI is exactly that raking atleast $1k per month. Its purely a marketing game as the product is a single-feature SaaS. In 1 or 2 years, it should easily cross $10k or $20k per month without effort as non-technical people who love calls/videos (think sales people, managers, or content creators) would absolutely love it.

Until next time,

Your Spells Master!

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