Deal Abstract

https://www.seedinvest.com/gimmeradio/seed

Twitch/Discord livestream/engagement meets music fans. Building a new music platform with deep expert DJ’s (think Inside.com and the columnist) to go niche and upsell the goods that are 4x to fans.

This is a retroactive deal memo, as the company raised $510k in March. I went to a live investor event.

Decision

Yes (hypothetically.)

Why Investing/Passing

  1. Right people with experience on music side of business
  2. Interesting take to engagement that has seen success in videogames (Twitch/Discord,) while also being tested in news (Inside.com)
  3. Solid media company, and while it’s impressive that Gimlet sold for $200MM in 5 years of founding, I’d say that’s the exception to the rule. (Alex Blumberg and NPR all-star team were essentially masters of their craft but under market value.)

The 6 Calacanis Characteristics (91 161 18)

CheckPass/Fail
1. A startup that is based in SVPass: (San Francisco, CA)
2. Has at least 2 founders Pass
3. Has product in the market Pass
4. 6 months of continuous user growth or 6 months of revenue.Pass
5. Notable investors?Pass: Techstars (Music)
6. Post-funding, will have 18 months of runway Fail: at present raise of $500k, that means 10 months of runway. If they raised 1.5MM, it would have been 30 months of runway.

Has $111k cash on hand for operations. “The Company’s cash position is relatively limited, and while the company has reduced its burn over recent months, gives the company a limited runway.”

Gimme Radio profile on SeedInvest

The 7 Thiel Questions (ETMPDDS)

  1. The Engineering question:
    • Good: introducing Twitch/Discord dynamics with superstar DJ’s has the potential of a 10x better engagement with


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.