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 for a hospital edtech solution is a large, scalable business.
What has to go right for the startup to return money on investment:
- 100x Revenue: In April 2020, valuations for SaaS companies was ‘the median public SaaS company valuation multiple stands at 8.2 times ARR.‘ In other
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