Mobile app is helping people train their hearing. Very positive business, the question is how they can grow to become venture backable.
|1. Fundraising Target?||$1070000|
|2. Fundraised So Far?||$57647|
|3. Pre-Money Valuation?||$9750000|
|4. Previous Year's Annual Revenue||$2288|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-64049|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Santa Monica, CA|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Though modest revenue|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Low burn, needs only $100k|
|1. Engineering?||3||Don't know of another app that not only diagnoses but improves hearing|
|2. Timing?||1||Not sure why this is the time this market will explode|
|3. Monopoly?||2||Good amount of user data|
|4. People?||2||Team seems strong, though strange that the technical co-founder isn't on there either|
|5. Distribution?||2||Distribution to app store, but are the founders influencers in this space?|
|6. Durability?||2||What's to stop someone else from making this app? What's making customers sticky here?|
|7. Secret?||3||By using novel technology training processes, the AudioCardio team can meaningfully improve people's hearing and use that as a beachhead into a general wellness app|
What has to go right for the startup to return money on investment:
1. Scale revenue; 2. Develop a platform, not just be a product; 3. Demonstrate meaningful improvement of hearing at scale
What the Risks Are
1. Too niche' 2. Ambiguous impact of product; 3. No market
Bonus Muhan's Notes
Excited to see the founders vision for turning this into a platform.
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 email@example.com and let me know.