B2B2C SaaS company for martial art schools and students. Has a product and modest revenue, but is the market venture backable?
|1. Fundraising Target?||$50000|
|2. Fundraised So Far?||$13501|
|3. Pre-Money Valuation?||$2500000|
|4. Previous Year's Annual Revenue||$2250|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-2883.47|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Miami, FL|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Revenue increased from 2019 to 2020|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Low burn|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Pretty and specialized for martial arts|
|2. Timing?||2||Digital transformation applied to martial arts|
|3. Monopoly?||3||Good number of users, but low revenue|
|4. People?||2||Founder is a product designer and has built the process|
|5. Distribution?||2||Got to 4k martial art schools and 18k users, so decent distribution|
|6. Durability?||3||If can be built, essentially a CRM/POS/all in one business management SaaS for martial arts|
|7. Secret?||2||Martial arts is growing, the managers of these businesses are looking for digital transformation to revitalize their businesses|
What has to go right for the startup to return money on investment:
1. Drive more consistent revenue; 2. Understand who are the new proprietors of martial arts school; 3. Build a platform, when does Dojoplus start hosting nationwide competitions?
What the Risks Are
1. Thin market that doesn't have a high willingness to pay; 2. Unlike Yoga or Crossfit, I don't see any adults starting martial arts; 3. Good product bad market
Bonus Muhan's Notes
Very cool, given that I was introduced to the company through a warm intro.
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