|1. A syndicate lead who has been investing for at least five years and has at least one notable, unicorn investment||Fail: No syndicate lead or investor who fits this bill.|
|2. A startup that is based in Silicon Valley||Fail: 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.|
- Boston metro area based company, investing in home team and possibility of supporting with local network.
- Strong user base growth, has over 180 vendors that he can monetize.
What the Risks Are
- 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 say.
- The founder focuses too much on the ethical side of this business to make the unit economics work in a market for competitive capital.
- I use sites like Honey, and various chrome extensions related to e-commerce: haven’t seen them take off besides niche communities looking to
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