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Daaci: Let's break the sound barrier

Updated September 2024

Updated: Mar 04, 2025

Executive Summary

DAACI

DAACI is a pioneering AI-driven music technology company that has developed a suite of advanced solutions for adaptive music editing and generative music composition. With over 30 years of groundbreaking research and 75 granted patents, DAACI leads the way in ethical AI, focusing on enhancing the creative process while safeguarding artists' rights. It's adaptive technology, already in use on the Triller platform, serves over 35 million users and has generated more than £2.2m in revenue in the last 12 months, showcasing its commercial viability in the B2B2C market.

DAACI is poised for significant growth with the upcoming launch of new adaptive products and AI-powered generative music tools in 2024 and 2025. What makes DAACI truly stand out is its ability to create music note by note without relying on copyrighted material, offering a scalable and flexible solution that meets the exponential demand for personalized music, making it a game-changer in the industry.

Investor deck

Investment Thesis

Overview of buy and sell case of the business.

Why Invest?

Key pieces of information about the business that you need to know about.

Competitive Advantage

  • Ethical AI: DAACI is the only AI music company committed to ethical practices. Unlike competitors facing legal challenges due to unauthorised data training, DAACI's reverse engineering approach ensures full compliance with copyright laws, earning support from major music organisations like ASCAP and PRS. This ethical commitment has fostered strong partnerships with leading music labels, including Universal Music Group, Warner, Sony, and Disney.

  • Copyright Protection: DAACI's unique patent portfolio enables the creation of legally protected and copyrightable music. Unlike LLM-based solutions, which have faced legal limitations, DAACI's approach guarantees ownership and monetisation rights for creators. This competitive advantage sets DAACI apart in the market.

Financial Opportunity

DAACI is well-positioned to capitalise on the rapidly expanding creator economy, a market estimated to exceed $40 billion. This lucrative and dynamic sector presents a unique opportunity for DAACI to establish a strong presence and drive significant revenue growth

Proven track record

DAACI’s founders have generated significant returns to
investors in this space over the last 10 years. The founders created and continue to support the Tech that drives the Triller app. Triller has just announced an acquisition by a NASDAQ company at $4bn headline value, that is an increase from $100 million when DAACI got involved (3,900% increase).

Catalysts

The key events that could drive investment opportunities and shift markets.

Near term

  • Editing pre-existing music (Adaptive) - 4th September 2024. Live status and industry press release for DAACI Adaptive with Nashville-based Soundstripe as our reference client because it is one of the industry’s fastest growing providers of unlimited, royalty-free music, stock video, and sound effects for use in videos, podcasts, and other media projects.

  • Generative music - 5th September 2024; Launch of DAACI’s first generative composition tool in partnership with Spitfire Audio Limited, the world’s leading sample provider. Spitfire make inspiring sounds and scoring tools for film, in collaboration with the World's best composers, musicians and engineers including Hans Zimmer and Abbey Road. DAACI will offer a 14-day free trial of the Natural Drums product to the 2.5 million Spitfire Audio customer base as part of the campaign.

Medium term

  • Adaptive - Q4 2024; Reseller Agreements already signed start to deliver brand and advertising agency clients. Eg. Songtradr - This partner can offer both sales, distribution, and customer support to their c.100 direct brand clients as well as c.200 creative agency clients. As the world’s largest B2B music company, Songtradr delivers the only full-stack solution for all business music needs.

  • Generative - Q4 2024- Q4 2025; A phased release of a series composition plugins for popular digital audio workstations (Logic, Protools, GarageBand, etc). Integration of DAACI technologies into the Spitfire Audio LABS+ platform.

Long term

  • Adaptive Q1 2025: Ad Agency online tools: Saving clients considerable time and expense when it comes to the process of finding, editing and synchronising music to video during the decision-making process. DAACI enables anyone of any skill set to find and then edit music to a video.

  • Generative Q4 2025: B2B Licensing DAACI generative plug-in technologies to consumer facing apps, offering generative composition to the social media, music, media, creator and gaming industries for mass consumer bases.

Follow the Experts

Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.

Isabel Garvey profile

Isabel Garvey

COO of Warner Music Group, Former MD of Abbey Road Studios,

1.8k audience

Expert Insights

linkedin
"We believe DAACI represents a step change in music composition assistive technology putting the creator first and truly enhancing a bespoke artist/composer creative experience"
See more
Olivier Robert Murphy profile

Olivier Robert Murphy

CEO of Spitfire Audio

22k audience

Expert Insights

linkedin
"The partnership with DAACI signifies a pivotal moment for us as we expand our commitment to support composers, musicians and creatives in pushing the boundaries of music creation through innovative, collaborative and ethically developed AI tools"
See more
Tim Miles profile

Tim Miles

SVP Sync, Warner Music Group

8.5k audience

Expert Insights

linkedin
"The technology presents a new dawn for the industry, taking music even further into a world of high-performance personalisation and on-demand services"
See more
Hazel Savage profile

Hazel Savage

VP music Intelligence at Soundcloud

11.3k audience

Expert Insights

article
"I think where AI is powerful is it can put very, very personalized recommendations in front of millions of people for a very, very low cost."
Read more
David Henkin profile

David Henkin

AI Music Investor

2.2k audience

Expert Insights

article
"Artificial Intelligence is not just a crescendo, it is a paradigm shift"
Read more
article
"The impact of AI in the music industry is not a mere trend, it is a building, transformative wave. The business opportunities are vast, from revolutionizing composition and production to optimizing distribution"
Read more
Music Business Worldwide profile

Music Business Worldwide

Music news magazine

190k audience

Expert Insights

article
"A new study carried out for collective management organizations (CMOs) in Europe predicts that the global market for generative AI in music will exceed USD $3 billion by 2028 – a tenfold increase from 2023"
Read more

Investor Materials

Access the most recent investor updates published by the company.

Key documents

External Insights

A curated collection of third-party content relevant to the company and sector to help inform your investment decision.

AI Music

Soundstripe launches 'AI Song Editing' feature with Daaci

Article

Discover Soundstripe's new 'AI Song Editing' tool in partnership with Daaci, allowing clients to create unique mixes from its music catalogue.

Team

Meet the experienced professionals leading our organization

Philip Walsh - undefined

Philip Walsh

What the Pro's Are Asking

Here are the questions that institutional investors are asking before making an investment decision.

What is the current investment opportunity?

DAACI is raising £5 million at a £35 million valuation, with EIS relief available for eligible investors.

Do you have a Limited Market?

No, like Spotify did, It's creating a new marketplace to increase and disrupt. The biggest of these opportunities is the potential to massively impact the gaming market, with bespoke, interactive music.

Are you trying to do too much?

DAACI has been developing its solutions for 10 years. Its advanced ecosystem allows any creative company, individual, or creator to use and benefit from our tools. Like OpenAI or Intel, DAACI is not just one thing; it is an ecosystem. DAACI's work is at the forefront of future innovation but behind the scenes of every music-based company.

What investments has there been to date and where from?

To date, £10 million has been invested into DAACI Holdings and its subsidiaries. This has been from a mix of UHNW, previous investors, Founders and some funds. The Patent and IP portfolio owned by DHL is valued at £44 million.

What are the key challenges faced by your company and how might you mitigate them?

Speed to Market: To maintain its leadership position in ethical generative AI, DAACI must
prioritise rapid product development. This will require a strategic combination of growth capital
and a meticulously planned roadmap to ensure timely market entry.

Industry Adoption: Gaining widespread industry acceptance is crucial for DAACI's success. While the company enjoys strong support from industry leaders like ASCAP, UMG, Abbey Road, and PRS, it must actively drive the global conversation on AI ethics and standards to foster trust and adoption.