Deal Abstract

https://wefunder.com/doodeo

Instagram meets LinkedIn meets Thumbtack as this company tries to build an artist focused social network.

Financials (VRB)

Question Notes
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
Source

The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)

Criteria Yes/No
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
Source

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
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


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.