Investing in Bavovna AI
The following excerpt is from Allied’s original deal memo to investors. To review investment opportunities in full, please consider joining the syndicate at Allied.vc/join
The world economy relies on GPS as a core infrastructure technology. It provides position, navigation and timing data to millions of devices globally, from cell phones and airplanes to ships and military vehicles.
However, GPS is extremely vulnerable to cyber-attacks. Signals are unencrypted and can be easily intercepted and manipulated to falsify a location or outright jam the signal, rendering devices and vehicles inoperable and posing significant security risks (i.e. electronic warfare).
Today, GPS spoofing and jamming are incredibly easy to implement, with jammers publicly available on the internet for less than $100. Furthermore, the Russian military has spoofed nearly 10,000 vessels since 2016, resulting in GPS outages and false positioning data.
Source: Wired
As a result, the market for GPS products and services is currently worth $80B and is expected to surpass $300B by 2030, growing at 16.5% CAGR.
Furthermore, while many companies are working on expensive satellites capable of providing encrypted GPS, this new technology is still many years away due to significant CAPEX requirements and lengthy deployment timelines.
Enter Bavovna AI
Bavovna is an AI-powered navigation system capable of operating without GPS or remote controls.
Bavovna’s proprietary AI navigation software can be quickly and inexpensively loaded onto vehicles. The software is platform and environment-agnostic, allowing non-GPS navigation in GPS-compromised environments (e.g., aerial, underground, or underwater).
Their first implementation is UAVs under real-world threats in Ukraine. Since the war began, thousands of UAVs have been hijacked or lost as a result of electronic warfare (EW).
Source: Shephard Media
With no signals transmitted into or out of the vehicle, Bavovna’s groundbreaking technology prevents GPS spoofing, jamming, and UAV takeovers, making it resistant to electronic warfare.
Why we are excited to invest in Bavovna AI
1) Proven Team with Deep Domain Expertise
The company was founded by a team of ex-special forces, AI, and navigation experts with deep experience in designing guidance systems for the U.S. military. Their unique mix of technical, military, and academic backgrounds has enabled them to create a breakthrough solution to a very costly and immediate global security problem.
2) Large and Rapidly-Expanding Market Opportunity
Bavovna is targeting the global GPS products and services market, which is growing at a rapid 16.5% CAGR and is expected to surpass $300B by 2030.
As this industry expands, so will the need for more accurate and reliable autonomous navigation technologies that do not rely on vulnerable GPS signals. We believe Bavovna is uniquely and strategically positioned to capitalize on this high-growth market.
3) Proven Success in Real-World Deployment
Bavovna's navigation technology is already deployed and used in real-world warfare, demonstrating the team's ability to execute and translate their research into commercial products that work under the most extreme conditions. This gives us great confidence in their technical abilities and the real-world value of their solution.
4) Strong Early Traction and Demand
Bavovna has already signed numerous six-figure contracts, indicating strong demand for their proprietary technology from manufacturers and end users alike.
Furthermore, the company recently graduated from the prestigious Air Force Labs MassChallenge accelerator program and has been fast-tracked for a sizeable grant from the US Department of Defence.
5) Long Development Cycles for Competitors
Encrypted satellites and other GPS technologies have extremely long development and deployment cycles, often taking 7-10 years and costing hundreds of millions of dollars to build, launch, operate, and maintain.
We believe this puts Bavovna's readily-available and quick-to-implement software solution at a significant advantage, allowing the company to adapt quickly to customer needs, gain distribution, and capture meaningful marketshare.
While others attempt to build and launch costly satellites, Bavovna is a tangible, cost-effective, and readily available solution that is in use today.
In Summary
As per our investment thesis, we love infrastructure software that enables and democratizes access to large and rapidly expanding markets.
Note: the remainder of this investment memo has been withheld due to security considerations. To access the complete memo, please join the Allied Syndicate network or contact us directly.
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