Crowdfunding and GoFundMe for low income college student living expenses.
|1. Fundraising Target?||$150000|
|2. Fundraised So Far?||$59100|
|3. Pre-Money Valuation?||$2500000|
|4. Previous Year's Annual Revenue||$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-12700|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Buffalo, NY|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||False: Beta|
|4. 6 months of continuous user growth or 6 months of revenue?||False: No revenue|
|5. Notable investors?||False: N/A|
|6. Post-funding, will have 18 months of runway?||True: Minimal burn so good to clear|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||GoFundMe for college students|
|2. Timing?||1||Not sure why this is the right time to build this business|
|3. Monopoly?||1||Very little market share|
|4. People?||2||Good professional experience but none running a crowdfunding type of company|
|5. Distribution?||1||What advantages does Arbol have in attracting donors?|
|6. Durability?||1||Not sure why this platform is that differentiated from GoFundMe and the like|
|7. Secret?||1||Recurring donors to college students believe finding worthy students is the biggest barrier to them donating more|
What has to go right for the startup to return money on investment:
1. Convert students into content marketers; 2. Develop special distribution to donors; 3. Find a way to capture some of the value being given
What the Risks Are
1. Non-profit not a startup; 2. Market isn't growing fast; 3. Unclear of the defensiveness of this platform
Bonus Muhan's Notes
Good mission, but can it become a sustainable business?
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.
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