Pre-revenue media company wants to launch a membership/sponsored content production house for mobile first video news. Compelling value proposition, with some famous investors, but too early in the innovation cycle for me. Needs to become a platform/tech company to deliver venture returns.
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The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||No: Brooklyn, NY|
|2. Has at least 2 founders||No (1, but has Chief Product Officer)|
|3. Has product in the market||No: only beta users, can’t download via app and didn’t want to give email to frame.media|
|4. 6 months of continuous user growth or 6 months of revenue.||No: 2019 net revenue was $261.|
|5. Notable investors?||Yes: Snap Accelerator, Biz Stone (co-founder of Twitter)|
|6. Post-funding, will have 18 months of runway||Yes: They burned $82k in 3 months, or monthly burn of $26.6k meaning that a round $1m would get them 38.46 months of runway. |
(Thanks to Yifan Tang for pointing out my slip-up!)
The 7 Thiel Questions (ETMPDDS)
- The Engineering question (Can you create breakthrough technology instead of incremental improvements?):
- Bad: This is a tech-enabled media company
- The Timing question (Is now the right time to start your particular business?):
- Good: Move to mobile definitely make sense
- The monopoly question (Are starting with a big share from a small market?):
- Bad: Hard to gauge. Potentially good if talking about just mobile/story like video news, bad if talking about mobile news.
- The people question (Do you have the right team?):
- Average: Team has good experience on creating content, but I don’t see anyone with unfair advantages in monetizing media.
- The distribution question (Do you have a way to deliver your product?):
- Average: Direct to consumer through online ads, but neither founder has an enormous platform.
- The durability question (Will your market position be
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