Get paid for your time watching advertisements. Cut out the Facebook/Google middlemen.
|1. Fundraising Target?||$1070000|
|2. Fundraised So Far?||$112500|
|3. Pre-Money Valuation?||$15000000|
|4. Previous Year's Annual Revenue||$432911|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-2531221|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Albequerque, NM|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Revenue meaningfully increased in last year|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||False: Very high burn|
|1. Engineering?||2||Technology is fine, essentially a hosted ad watching service|
|2. Timing?||2||Ads are being exhausted, but you see Big Tech going paid subscription model instead|
|3. Monopoly?||3||$1.5m paid out and $432k earned is not bad|
|4. People?||3||Founder good but where's rest of team?|
|5. Distribution?||3||Good sales and good getting product (users)|
|6. Durability?||2||What if people watching ads are not people who ultimately turn into customers?|
|7. Secret?||2||In response to the adpocalypse, companies started paying customers money for the opportunity to pitch them|
What has to go right for the startup to return money on investment:
1. Increase revenue to watcher pay out ratio; 2. Convinced more advertisers that this model is more effective; 3. Grow customer base and give segmenting more depth
What the Risks Are
1. Businesses are solving the ad problem by just paying people cash through referrals; 2. People watching ads and selling attn are least likely to be valuable customers; 3. Really high burn
Bonus Muhan's Notes
Super slick pitch video.
This is where I’ll post updates about the company. This way all my notes from offering to post-offering updates will be on one page.
Review these deal memos every time the startup raises a new round
Test if original thesis still applies
Notice trends in how you think
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at firstname.lastname@example.org and let me know.