Deal

https://www.seedinvest.com/donegood/seed

Decision

Not yet.

Calacanis

CheckPass/Fail
1. A syndicate lead who has been investing for at least five years and has at least one notable, unicorn investmentFail: No syndicate lead or investor who fits this bill.
2. A startup that is based in Silicon ValleyFail: No, this startup is based in Quincy, MA/Boston area.
3. A start that has at least two founders (with two, you have a backup in case one quits)Fail: No. One founder and four VPs. 
4. A startup that has a product or service that is already in the market (you’re not qualified to invest in startups that haven’t released their products—and frankly you don’t need to take this risk.)Pass: No revenue in 2016, $2,950 in 2017. 
5. A startup that has either (a) six months of continuous user growth or (b) six months of revenue.Pass: They tripled their user base in 2018 so far.
6. A startup that has notable investors.Pass: Matt Stinchbomb, one of the cofounders of Etsy is an advisor.
7. A startup that, post-funding, will have eighteen months of cash remaining, commonly referred to as runway (ask the founder and syndicate lead how many months of runway they will have post-funding)Pass: Yes, $30k in burn a month, $630k raised, so 21 months of funding. 

Why Investing

  1. Boston metro area based company, investing in home team and possibility of supporting with local network.
  2. Strong user base growth, has over 180 vendors that he can monetize.

What the Risks Are

  1. Do I think DoneGood’s market (conscious capitalism consumers vendors and consumers) is going to grow enough alone or grow big enough to take on Amazon? Hard to


Want to read the whole post?


You don't have access to this post on Startup Investing for All by Muhan Zhang at the moment, but if you upgrade your account you'll be able to see the whole thing, including comments, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.