The transcription details the importance of investing in FireSign AI, a solution aimed at improving wildfire preparation and response. It highlights the devastating impact of wildfires, the inefficiencies in current practices, and the need for better home protection and evacuation planning. FireSign AI offers a digital twin for homes, personalized recommendations for preparedness, and support during emergencies. The company plans to collaborate with local communities, insurance companies, and advocacy groups to promote its services. The goal is to make homes and families safer in high-risk wildfire areas and potentially expand internationally to address other disasters. FireSign AI anticipates profitability in the second year and expects significant revenue growth. Friends and family are encouraged to invest in the venture, with the possibility of significant returns. The initial fund will be used for software development, corporate infrastructure, and contingencies. Overall, the trans
We're offering friends and family the opportunity to invest in the fire-resilient air life, a fraction of what we believe is the value that the company will provide. Wildfires are huge and have blown the lives of lots. Between 2015 and 2025, over 350 people died in wildfires in the U.S. So a plant fire alone should go to 100 people. Property has been destroyed. $150 billion of property has been damaged in the West alone, and 9 of the 10 most expensive wildfires have occurred since 2017.
Insurance payouts have increased from $2.5 billion in 2016 to as much as $40 billion in 2024. In California alone, insurer losses are between $8 and $40 billion, just from the L.A. wildfire in early 2025. And as many of us know, insurers have not renewed policies, and many have stopped writing policies altogether. That's created local coverage choices and political perspectives. And current practices are woefully inept. Most homes are not hardened. Most families are unprotected. And survivors have been punished.
People don't respond well in crisis, and they're harmed physically and mentally. And it's not just the U.S. Fires in Canada, Europe, and Australia aren't direct to the wildfire international. Current best practices are simply not enough. Despite billions of dollars invested in food and defensive spaces, particularly in public places, gaps in preparation remain unequivocal. Homeowners simply aren't aware of best practices. They don't know what their cost-effective home-arming options will be. They don't participate in community programs like firewalls.
They don't have blow bags ready for crisis. In fact, only 21% of people have them. Those that do have them often find when they need them, they have dead batteries in their flashlights, for example. They have expired prescriptions. And often, bags are raided for daily use, and the contents aren't replaced. We will create digital trends for our customers' families and their properties, and we will anticipate the failures that happen, the power and communication failures that occur, the road closures and blockages that happen, and the cyclonic wildfire winds that cause them.
In a crisis, the brain operates differently, reverting to fight or flight, bypassing the frontal cortex. It's responsible for decision-making. Decisions are instinctive, fast, and they're emotionally charged, resulting in poor or incomplete decision-making of itself. Firesign AI will provide a solution. We'll offer regular updates on state-of-the-art preparation and offer chatbot support for specific customer questions. We can also recommend the most cost-effective investments in home-arming to each customer's needs. We'll know when prescriptions are out of date or when batteries should be replaced in bill bags.
And during an emergency, we'll offer simple checklists and directions to enable people to respond both quickly and rationally. We'll understand whether to recommend early evacuation for families with special needs or family members who require additional time to safely evacuate. Firesign AI's solution begins with automated digital twin. The digital twin is a dynamic, virtual representation of both the customer and their home. It mirrors real-world conditions using real-time data. And the AI allows us to develop models for our customer's home and their personal profile.
The process begins with guided image capture of their home and surrounding area, enabling us to identify opportunities for home-arming and vegetation. Personal profile helps us understand factors that impact evacuation time, including children, pets, or members with special needs. Again, using AI, we can determine whether and when to recommend an early evacuation. Firesign AI organizes an array of both public and proprietary information. In addition to the personal and property assessments, we'll also organize information about customers' critical documents.
In a wildfire, we'll collect and organize information about the fire's status, its speed, and its direction, and we'll monitor either of that for instructions and projections. We will be able to give customers the time to react and the tools to react rationally. We ensure that our customers are prepared. Once we understand the family profile, we can recommend a go-back and a stay-back with the right content, and through our e-commerce site, we can ensure that the elements of the bag are appropriate.
We'll also track when customers borrow from the go-back and remind them to replace those items, as well as refresh and flourish with content like batteries and restrictions regularly. We'll also help our customers prepare a digital go-back, including critical items like identification, insurance, and medical records, and items of personal significance that they choose to include. If they want to, they can include a video of their home and its content. We supplement all of this with monthly updates and reminders.
And during an emergency, we offer simple checklists and directions to enable them to respond quickly and rationally. There are several examples of a screen people might see with directions that are easy to follow. In situations such as a block egress route, we'll recommend a plan B to maximize the probability of survival. Based on the customer's request, we'll also notify their key friends, families, as well as authorities about customer status. Partnerships are key for FireSign AI. We're already developing relationships with local communities and with fire agencies.
Two of our founders are actively developing and assisting local firewire communities in Northern California. We'll also work with insurance companies, helping them to recognize the additional profits that they can make as a result of our home parking recommendation that we need to lower loss rates. We expect the insurance companies to offer customers partial or even complete subsidies to FireSign AI subscriptions. We also plan to recommend that advocacy groups like AARP or Rotary Cloud recommend the FireSign AI Academy with its special listing.
We plan to target large homeowner associations and local communities first while we build the relationship with affinity groups and insurance companies. The lead time on some of these initiatives is likely to stretch well over a year, but others should close much more quickly. In the meantime, we'll aggressively pursue marketing initiatives through our website, PR, and PA branches. After initiating sales with local groups and HOAs, our plan is to expand via partner relationships, followed by geographic expansion.
Our process is well suited for international expansion as well and expansion to other types of disasters, including hurricanes, tornadoes, and floods. In high and extreme wildfire risk areas, people recognize the need for preparation, but typically they haven't undertaken many of the steps they understand to be completed. Although 38% of families are willing to spend substantial sums on home improvement, most are still anticipating the wildfire. Almost 50% of our target market is worried about wildfire preparation, although they haven't made stable preparation.
About 15% are undecided and simply don't recognize the need. But often, people are overwhelmed by the apparent complexity and the number of technical tasks, like including defensive escape and evacuation plans. Most face time and cost constraints that impose by living a daily life. BioSign AI expects to be profitable by the end of year two as a result of addressing these untapped markets. We think subscribers will ramp up rapidly as we expand to Northern California, then into Southern California and Southwest markets.
We expect total revenues in our first four years to be well over $1 million, and well over $6 million in our second year. Sales will increase as we expand aggressively after our successful MVP, the minimum viable product. While we will experience losses in year one, we think we'll be profitable by the third quarter of year two and possibly expand thereafter. All of our families will experience demand in growing and complex locations. All will participate in the realm, including one who led the fastest-growing company in U.S.
history to that point, growing from zero to over $10 billion in less than four and a half years. And we're happy to provide additional details for each of our families. Our friends and family is beginning now, joining in reaping the rewards of doing well by doing good. The valuation for our friends and family now is less than 5% of the expected discounted value that this is, enabling our initial investment to reach passing rewards. Moreover, we're issuing 12.4 shares under IRS regulations, allowing investors to take up to $100,000 in short term loss if the venture isn't successful, so that clearly is not our expectation.
We'll help friends and family by issuing warrants in conjunction with future funding allowances to minimize the issues, and they'll be given priority access in those future rounds. We believe our friends and family and our warrants is our mission and can help us to minimize the loss of lives and property by investing the entire time of year. We expect to raise $570,000 in the friends and family allowance. Over $100,000 is already in the bank. The primary use of our initial fund will lead to development and buildup of our AI-driven software.
Secondarily, we'll build up corporate infrastructure to enable us to scale quickly as the business develops. And finally, we've got the contingent fund just in place. We'd like to thank all of our friends and family and invite them to participate in what we think is going to be an extraordinary possible venture.
