Instagram meets LinkedIn meets Thumbtack as this company tries to build an artist focused social network.
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$149600|
|3. Pre-Money Valuation?|$5850000|
|4. Previous Year's Annual Revenue |$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-155220|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Los Angeles, CA|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True:|
|4. 6 months of continuous user growth or 6 months of revenue?||False: No revenue|
|5. Notable investors?||False: Not seeing anyone|
|6. Post-funding, will have 18 months of runway?||True: If they fundraise 270k they'll be at 18 months of runway|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Slightly more tailored LinkedIn but not seeing the engineering as 10x better yet|
|2. Timing?||1||Not sure why now is the right time to start this business|
|3. Monopoly?||1||I don't know many artists using this yet, if anything YouTube, Soundcloud, and Spotify still own this|
|4. People?||1||No previous success building a social network or job board|
|5. Distribution?||1||Not sure how they have an edge in getting artists to sign up|
|6. Durability?||1||Not sure why LinkedIn/something with a larger community wouldn't come in and get traction|
|7. Secret?||1||Artists are not being served by existing social networks (Facebook/YouTube/Soundcloud, etc.) and will make a thriving social network if they can get gigs from their page|
What has to go right for the startup to return money on investment:
1. Monetize; 2. Figure out if it's ads or job board or livestreaming core base; 3. Become the gold standard of networking for artists
What the Risks Are
1. This problem is solved by Instagram; 2. Artists don't pay and going after this niche means there's not enough money to make an ad network; 3. Marginal not a painkiller solution
Bonus Muhan's Notes
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.
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