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)

Question Notes
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
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? ****: 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
Source

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 https://www.meratas.com/blog/where-to-find-coding-bootcamp-income-share-agreement-fund-education
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


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