Deal Abstract
The 500lb gorilla in Asian/Asian-American media organizations is raising money. What precedent does this set for Goldhouse, Nextshark, ACE, EO, and the like?
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $650000 |
| 2. Fundraised So Far? | $312000 |
| 3. Pre-Money Valuation? | $3000000 |
| 4. Previous Year's Annual Revenue | $190177.19 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-87651.99 |
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: Las Vegas, NV |
| 2. Has at least 2 founders? | True: Two |
| 3. Has product in the market? | True: Social network |
| 4. 6 months of continuous user growth or 6 months of revenue? | True: Though extremely modest |
| 5. Notable investors? | False: None available |
| 6. Post-funding, will have 18 months of runway? | True: Low burn |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 4 | Probably most well-known Asian professional organization, comparing to Goldhouse, ACE, and other affiliation organizations |
| 2. Timing? | 4 | Asians are the fastest growing demographic and have garnered more national attention in recent years |
| 3. Monopoly? | 5 | Honestly I don't know anyone larger than Asian Hustle Network |
| 4. People? | 3 | Solid team, bootstrapped to 100k members, $100k+ in revenue, and with backgrounds in entrepreneurial orgs and media |
| 5. Distribution? | 3 | Digital distribution and good job teaming up with players with brands |
| 6. Durability? | 4 | It's pretty hard to compete with AHN's brand and scale at this point |
| 7. Secret? | 2 | Asian entrepreneurs are an underserved market and will pay premium for services, education, and community. |
What has to go right for the startup to return money on investment:
1. Build something more defensible than just an events/conference business; 2. Sharpen value proposition and also identify exactly what types of entrepreneurs are core business; 3. Drive more value to more mature entrepreneurs who have been drawn to organizations like EO
What the Risks Are
1. Not scalable; 2. Asian entrepreneurs demand for this type of good is not venture speed; 3. Media is a lead funnel but ultimately not enough of an independent business
Bonus Muhan's Notes
Very cool to see AHN raise money, but the question is whether this is a small business or a startup.
Updates
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Review these deal memos every time the startup raises a new round
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