Google Assistant backed startup company that could be the Calm.com aka the video library for all audio assisted treatment for hospitals. Has a product but pre-revenue. Risks include founders who have no notable exits before, lack of big hospital connections, and painkiller value of product.
|1. Fundraising Target? |$1m|
|2. Fundraised So Far?|$342k|
|3. Pre-Money Valuation?|$5m|
|4. Previous Year's Annual Revenue |$0|
|5. Previous Year's Annual Burn |~$50k|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||No: Los Angeles, CA|
|2. Has at least 2 founders?||Yes: Two founders|
|3. Has product in the market?||Yes|
|4. 6 months of continuous user growth or 6 months of revenue?||No: still in beta and hasn't gone big on marketing.|
|5. Notable investors?||Yes: Google Assistant Investments.|
|6. Post-funding, will have 18 months of runway?||Yes: At $1m they'd have 20 years of runway.|
|1. Engineering?||2||Technology meh, but this isn't a tech play, it's a content play|
|2. Timing?||2||Unsure, not seeing anything in oncology that may make this thing blow up.|
|3. Monopoly?||2||Sure but I really don't know other audio companions to oncology patients. Spotify podcasts?|
|4. People?||2||No notable exits from either founder, LinkedIn still shows them being present on some old companies.|
|5. Distribution?||2||Not bad, not great. No doctor who can push this product on hospital systems.|
|6. Durability?||3||Good, content library.|
|7. Secret?||2||This is going to be the Calm.com of audio-assisted treatments.|
What has to go right for the startup to return money on investment:
- Generate Revenue: 'Nuff said.
- Schmooze, Sell, Scale: Hospitals pay for this? Founders need to become very buddy buddy with hospital systems.
- Calm.com for Audio-Assisted Treatments: Rinse lather repeat and become content library.
What the Risks Are
- Vitamin: I know the company is trying to prove its value, but do the clinical studies convince the hospitals?
- Tiny Markets: There's only been 100 users. How many total addressable users are there, and how many hospitals are willing to pay for this?
- B2B vs. B2C: Calm.com went the route of d2c and was profitable after Calacanis invested. This company has to climb the hill of B2B which is no easy feat.
Bonus Muhan's Notes
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