The CoverAI acquisition by a New York-based firm is a significant achievement for Nigerian tech entrepreneurs. It shows that they can build innovative and valuable solutions that can attract global buyers, even with limited resources and time.
CoverAI was founded by Chris Adolphus, a Nigerian entrepreneur who wanted to help job seekers create better cover letters using artificial intelligence. He built the first version of CoverAI in May 2023, with the help of a software engineer friend. The product quickly gained traction, with more than 200 users in the first two weeks.
After getting feedback from the users, he improved the product and added more features, such as CV optimization, interview preparation, and job application tracking. He also used a freemium model, where users could access some features for free and pay for more advanced ones.
By September 2023, CoverAI had 13,000 users, all acquired organically. Adolphus decided to list CoverAI on Acquire.com, a start-up acquisition marketplace, where he received 15 offers from potential buyers. He chose to sell to Writesea, a New York-based company that provides white-label services for recruitment marketplaces.
The deal was closed in October 2023, for an undisclosed amount in the five-figure range². Adolphus said that he was building CoverAI for acquisition from day one, as he had other ideas he wanted to explore. He also said that he learned a lot from the process and that he is already working on his next product, which he hopes to sell for six figures within six months.
However, CoverAI’s acquisition by Writesea is a win for Nigerian tech entrepreneurs because it demonstrates that they can create solutions that solve real problems for people around the world. It also shows that they can leverage platforms like Acquire.com to find buyers who are interested in their products and willing to pay a fair price for them. It also inspires other aspiring entrepreneurs to pursue their ideas and build products that can make an impact.
The difference between AI and machine learning is that AI is the broader concept of creating machines or software that can perform tasks that normally require human intelligence, such as understanding natural language, recognizing images, or making decisions.
Machine learning is a subset of AI that uses algorithms trained on data to produce models that can perform such complex tasks. Machine learning is one of the methods of achieving AI, but not the only one. There are other subfields of AI, such as deep learning, natural language processing, robotics, and expert systems, that use different approaches and techniques to create intelligent systems.
However, one of the domains where AI has shown great potential is recruitment. According to a report by LinkedIn, 76% of recruiters believe that AI will have a significant impact on their industry in the next five years.
AI can also help recruiters find the best candidates for a job, by analyzing their skills, personality, and fit for the role. AI can also help job seekers improve their chances of getting hired, by providing them with personalized guidance and feedback on their resumes, cover letters, and interviews.
One of the startups that leveraged AI to help job seekers was CoverAI, It offered features that helped users improve their cover letters, build their professional networks, and prepare for interviews. CoverAI used a freemium model, where users could access some features for free, and pay for more advanced features through subscription plans.
CoverAI quickly gained traction among job seekers, attracting more than 13,000 organic users in just three months. Adolphus claimed that he built CoverAI with the intention of selling it from day one, as he had other ideas he wanted to explore. He listed CoverAI on Acquire.com, a start-up acquisition marketplace, where he received 12 bids from potential buyers. He eventually sold CoverAI to Writesea, a New York-based company that specializes in white-label services for recruitment marketplaces². The deal was a five-figure cash deal, although the exact amount was not disclosed.
The acquisition of CoverAI by Writesea is a remarkable achievement for Adolphus and his team, as well as for the Nigerian AI ecosystem. It shows that Nigerian entrepreneurs can build innovative and valuable solutions using AI, and attract global attention and investment. It also shows that Nigerian entrepreneurs can leverage platforms like Techbooky.com to find buyers for their start-ups, without having to go through the traditional fundraising or exit routes.
The African start-up landscape in general requires collaboration and coordination among various stakeholders, such as governments, universities, corporations, investors, civil society organizations, and media. They also require creativity and resilience from the entrepreneurs themselves, who have to overcome many obstacles and uncertainties along their journey.
The acquisition of CoverAI by Writesea is not the end of the story for Adolphus or for Nigerian AI. It is rather a milestone and a catalyst for more innovation and impact. Adolphus is already working on his next AI product, which he hopes to sell for six figures within six months.