Deal Abstract

https://wefunder.com/blissdivorce

Platform for mediating divorces. The technology is based off of eBay’s ODR, or online dispute resolution technology, which resolves 80-90% of disputes online. CMO is formerly LegalZoom. Hilarious and educational First Round spoof music video and a goldmine for legal tech ideas in this deal memo.

Shoutout to M.H. for the tip!

Decision

Pass.

Why Investing/Passing

  1. Pre-Revenue: I don’t fund anything pre-revenue. Bringing things to market has a great deal of uncertainties that normally are quite expensive.
  2. I Hope My LTV, is More Than, CAC”: Phenomenal hat tip to First Round capital. This venture capital fund’s content is consistently killing it. Popular music spoofing aside, LTV = Lifetime Value and CAC = Customer Acquisition Cost, and my concern is that if BlissDivorce’s LTV is $3k (at present,) and CAC could be $1.8k (benchmarking off of Nada) then that’s a healthy, niche business that I need more growth from.
  3. Raising Too Little Capital, Part-Time CMO: This is my weakest reasoning for not investing, but if you’ve got the former CMO of LegalZoom and some strong founders, it should be clear that getting to revenue is an incredibly large milestone that should have been achieved with the last $400k in funding. Especially with burn at $40k and having only 3 months of runway left/being about to launch, I’m concerned that they’re not raising enough capital to be conservative with all the things that go wrong in going to market.

Honestly, I really liked the company. If this company raised again in 6-12 months with financials, I’d probably have invested.

The 6 Calacanis Characteristics (91 161 18)

CheckPass/Fail
1. A startup that is based in SVPass: Los Altos, CA
2. Has at least 2 founders Pass: 3
3. Has product in the market Fail (in testing phase)
4. 6 months of continuous user growth or 6 months of revenue.Fail
5. Notable investors?Fail: None.
6. Post-funding, will have 18 months of


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