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?
|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)
|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|
|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.
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.