Deal Abstract

Invest in Aladdin: Africa’s 1st ecosystem bank | Wefunder
Africa’s 1st ecosystem bank
Aladdin on Wefunder

Aladdin wants to be the one ring/bank/app/FinTech service to rule all the African countries.

Financials (VRB)

Question Notes
1. Fundraising Target? $1000000
2. Fundraised So Far? $258122
3. Pre-Money Valuation? $9000000
4. Previous Year's Annual Revenue $50000
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-16854
Source

The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)

Criteria Yes/No
1. A startup that is based in SV? False: Delaware, OH
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 looking good
5. Notable investors? False: N/A
6. Post-funding, will have 18 months of runway? True: Very low burn
Source

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
1. Engineering? 1 Not sure what this app is exactly, a digital bank?
2. Timing? 1 Such a broad app
3. Monopoly? 2 Traction numbers do seem strong
4. People? 1 Checked out CEO's LinkedIn and not lots of consistent work experience
5. Distribution? 1 Not sure why unfair access to customers
6. Durability? 1 I've seen plenty of banking startups for the African continent
7. Secret? 1 Africa has lots of SMB customers that other banking institutions don't realize yet

What has to go right for the startup to return money on investment:

1. Tighten focus; 2. Establish partnerships with relevant banks or government orgs; 3. Master the Nigerian market first then expand

What the Risks Are

1. Ambiguous value prop; 2. Banking needs more established people to disrupt; 3. International players will want to provide banking services for African countries as well

Bonus Muhan's Notes

Reminds me of Asaak in the African focus, would be curious to benchmark to other startups with African finance dreams.

https://www.linkedin.com/in/darlington-onyeagoro-64046634/

African fintech OPay valued at $2B in SoftBank Vision Fund 2-led $400M funding – TechCrunch
Chinese-backed and Africa-focused fintech company OPay raised $400 million in new financing led by SoftBank Vision Fund 2, Bloomberg reported Monday, valuing the company at $2 billion. The round, which marks the fund’s first investment in an African startup, drew participation from existing investor…
TechCrunchTage Kene-Okafor

Updates

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