Deal Abstract

MicroVentures - Invest in Startups

Marketplace for people to sell and buy ISAs. Will ISAs grow to support higher ed hegemony, or will the hegemony break/go other ways?

Financials (VRB)

|1. Fundraising Target? |$2000000|
|2. Fundraised So Far?|$394959|
|3. Pre-Money Valuation?|$12500000|
|4. Previous Year's Annual Revenue |$50000|
|5. Previous Year's Annual Burn |~$3501276|


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

Criteria Yes/No
1. A startup that is based in SV? ****: Briarcliff Manor, NY
2. Has at least 2 founders? True: Two
3. Has product in the market? True:
4. 6 months of continuous user growth or 6 months of revenue? True: 'Revenue has grown by over 165% from 2019 (April – December) to 2020 (through Q3). In 2019, Edly generated over $336,000 in revenue. Over 95% of revenue was generated from origination fees. In 2020 (through Q3), the company generated over $890,000 in revenue. Origination and warehouse incentive fees made up about 70% of total revenue.'
5. Notable investors? ****: Didn't see anyone I know
6. Post-funding, will have 18 months of runway? ****: Would need 2.4m for 18 months, only raising 2m and at present only $394k raised

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

Question Score Notes
1. Engineering? 2 Not sure why Edly is better than all other ISA programs
2. Timing? 2 Great time for income share agreements, though this gives me mixed feelings
3. Monopoly? 1 No, I have never heard of this company though I know coding bootcamps often offer ISAs
4. People? 2 Right finance background, not seeing too much startup background
5. Distribution? 2 Direct to consumer, though would need to partner with institutions who'd offer this
6. Durability? 1 What's to stop a school from offering their own ISA like coding bootcamps?
7. Secret? 2 ISAs are the future and instead of universities offering the financing, it'll be bank like institutions cutting these deals

What has to go right for the startup to return money on investment:

1. ISAs continue to grow; 2. Reign in those costs; 3. Gain popular brand/lock down essential partnerships

What the Risks Are

1. Universities/organizations offering their own ISAs, 2. Margins aren't high enough, they've spent a lot of money, 3. the back of unforgivable student debt is broken by Gen Z-ers striking against the vampiric blood seeking hegemony of higher ed

Bonus Muhan's Notes

Anything to relieve student debt, though asks biggest questions about how our society let it get this bad ever.


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

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