Education platform providing just-in-time reference and tips to healthcare professionals. Backed by Y-Combinator, $900k in revenue to date. Burn is $120k and raised 8 months of runway to try and 2x revenue and clients by Q2 2021.
Shoutout to A.S. for the tip!
- Valuation Too High/Company Too Mature: I’m looking for companies sub-$10 million valuation.
- Health Tech Not My Jam: I’m not bullish on medical organizations being motivated to adopt the newest, most efficient technology at a very rapid pace. That said, maybe COVID changes the equation.
- Seems More a Sales Play than a Technology Play: Solid business but uncertain it’s venture backable.
The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||Yes: Oakland, CA|
|2. Has at least 2 founders||Yes: 2|
|3. Has product in the market||Yes|
|4. 6 months of continuous user growth or 6 months of revenue.||Yes: See revenue and growth chart from team.|
|5. Notable investors?||Yes: Y-Combinator|
|6. Post-funding, will have 18 months of runway||No: Burn is $120k/mth, fundraised $1,070k which is 8-9 months.|
The 7 Thiel Questions (ETMPDDS)
- The Engineering question:
- Uncertain: Not sure their EdTech solution is that much better than existing technology. That said, they can sell..
- The Timing question:
- Fine: COVID and the like.
- The monopoly question:
- Good: Could scale quickly, impressive stats about time to deployment.
- The people question:
- Good: CEO and CTO are strong.
- The distribution question:
- Good: Selling to hospitals is hard, and the CEO is a former medical director.
- The durability question:
- Good: selling to hospitals is hard but very defensible.
- *What is the hopeful secret?:
- Charging money
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.