ViralMoment—co-founded in 2021 by Chelsie Hall and Sheyda Demooei—is an AI-powered, video analytics company that emerged from Hall's recognition of a gap in the market for understanding social video content. Despite initial success with a meme analysis tool, securing funding from accelerators, and traction with customers, the company faced challenges raising capital from institutional investors who demanded more traction.
Hall, who was pregnant when raising her pre-seed round, persevered by focusing on building the company's credibility and securing high-profile clients. This strategy eventually led to $3.7 in pre-seed and seed funding, proving the value of their innovative video analytics solution and highlighting the challenges and triumphs of women entrepreneurs in the AI field.
AI-Powered Insights For Social Video
ViralMoment addresses the growing need to understand video content online, an $8.37 billion market. Hall had worked in intelligence with the Departments of Defense and State to understand online text conversations. The company's genesis stemmed from Hall's realization that while text-based conversations were being analyzed, social video content like TikTok was not.
She interviewed hundreds of people at brands. “Everyone said the same thing, social video is a black hole,” said Hall.
“I drained most of my savings account, and hired a scrappy developer,” said Hall. He built a service that analyzed memes. ViralMoment secured a few paying creative agency customers.
MORE FROMFORBES ADVISOR
That was the proof point that Hall needed. A mutual friend introduced Hall to Demooei. Both had graduate degrees from Carnegie Mellon. Demooei's degree was in engineering. She had built image recognition technology used by NASA to pilot autonomous drones.
However, after receiving funding from accelerators like Carnegie Mellon's VentureBridge and TechStars, the company pivoted to develop a more comprehensive video analytics platform. This platform aimed to provide insights into social video content, helping brands, governments, and individuals understand the conversations and trends emerging from video platforms.
The company's evolution has been marked by continuous innovation and adaptation to the changing landscape of online video. It has secured significant clients like Delta, Warner Bros., WPP, and Omnicom agencies, and the Collaboratory Against Hate, among others. The value of the product is demonstrated by the demand for its video analytics solutions. ViralMoment's mission, which is to make the internet a safer and more equitable space, is evident in its approach to AI development. Its AI bot is personified as a "brilliant researcher" rather than perpetuating harmful feminine stereotypes.
Challenging AI's Gender Bias
Women experience significant challenges in the AI field, including gender bias, stereotyping, and underrepresentation. Hall and Demooei are no strangers to the challenges women face in the tech world. Hall points out how AI often perpetuates biased representations of women, citing examples like Siri and Alexa, which are often portrayed as subservient assistants. She also highlights the lack of women in leadership roles in AI, a reality she and Demooei have personally experienced.
Despite these obstacles, Hall and Demooei have found ways to thrive in the field. They actively challenge stereotypes by designing AI that embodies intelligence and strength, rather than reinforcing harmful tropes.
They've also built a strong network and found mentors who have supported their journey. One of their key strategies has been to focus on building a successful business, proving the traction of their product, and securing blue-chip clients. This approach has helped them overcome biases in the venture capital world and secure funding for their company.
Hall and Demooei are not just building a successful AI company; they're also advocating for greater representation of women in the field. By sharing their experiences and pushing for more inclusive AI development, they're working to create a more equitable and diverse tech industry. Their story is a testament to the resilience and innovation of women in AI, and it serves as an inspiration for others who are navigating the challenges of this exciting and rapidly evolving field.
“They're not just participating in the AI revolution―they're leading it, developing cutting-edge technology to decode video content,” Gina King, Partner at Supernode Global. “Having women at the forefront of this innovation is crucial; their diverse perspectives bring much-needed nuance to understanding such an influential medium.”
Raising Capital Despite Investor Hesitation
"The same week I found out that we got into Techstars, which was late spring, early summer 2021, I found out I was pregnant," shared Hall. “Finding out I was pregnant wasn't any kind of deterrent for me; I was just kind of like, alright, here we go.”
Hall is a fourth-generation entrepreneur, following in the footsteps of her mother, who owned a yogurt store. As a child, Hall often accompanied her mother to work, earning the nickname "waffle cone baby" due to the sweet scent that clung to her from the store's freshly made waffle cones.
Techstars introduced the duo to investors, but they also leveraged contacts from their network. “It was 2021, and people were joking that you could just stick your arm out of the car window and grab money,” sighed Hall.
Hall was raising a pre-seed round, which is typically not about traction but rather about the founder. Investors at this stage are looking to take a bet on founders they believe in and on their potential. Seed investments, on the other hand, may involve some expectation of traction, although the primary focus is still on the team and the product's potential.
Despite gaining customers, fundraising was slow going, as institutional investors wanted to see more traction. Perhaps it was that she was pregnant or investors were unfamiliar with women in AI.
“You know what? I'm just going to go build this thing. I don't need this to be easy,” exclaimed Hall. Friends, family, advisors, and angel investors provided some funding. "We put our noses to the grindstone and got more traction," Hall explained.
Hall had a signed six-figure contract with a Fortune 10 snack food company. An investor said that still wasn’t good enough. He wanted to see the client signed for a second year, which was very frustrating to Hall.
Then, VirtualMoment secured marquee clients. Shortly before Hall's son, Augie, was born, capital began to flow. They eventually raised $3.7 million, including investments from institutional investors. Hall's resilience, the company's growing traction, and her ability to connect with investors who believed in her vision were key to this success.
"Duo Partners invested in ViralMoment because founders Chelsie Hall and Sheyda Demooei, with their impressive vision and expertise, have created a groundbreaking solution that addresses a critical gap in the market,’ said Karyn Shoenbart, Founder and Partner at Duo Partners. “ViralMoment uniquely analyzes millions of social videos, providing unparalleled insights, competitor monitoring, brand safety, and campaign activation and measurement."
Being pregnant with her second child was not a problem in closing a $1 million extension seed round.
When you experienced hesitation from investors, how did you overcome it?
