Deal Abstract

Cloud managed network protection with machine learning to keep families and businesses safe

California classics are coming back to SeedInvest to raise a second round after launching their security focused modem e.g. a helicopter parent's panopticon dream.

Financials (VRB)

Question Notes
1. Fundraising Target? $10000000
2. Fundraised So Far? $664000
3. Pre-Money Valuation? $25000000
4. Previous Year's Annual Revenue $1080814
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-688228

The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)

Criteria Yes/No
1. A startup that is based in SV? False: San Diego, CA
2. Has at least 2 founders? True: Two
3. Has product in the market? True: Has revenue
4. 6 months of continuous user growth or 6 months of revenue? True: 2019 revenue to 2020 grew by $300k, roughly 50% increase
5. Notable investors? False: No one they've named
6. Post-funding, will have 18 months of runway? True: Just needs $1m for 18 mths of runway

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
1. Engineering? 2 Seems like a router with parental panopticon service in, not a 10x improvement
2. Timing? 2 Yes, more working from home, but not sure why this moment in history is why loads and loads of parents are going to suddenly buy routers to censor their kids internet (and why wouldn't Verizon/Internet service providers eat this lunch)
3. Monopoly? 2 Good revenue, but not sure what small market they have a big share of
4. People? 3 Strong team, my concern is that they're product nerds first, and good products don't make for good businesses
5. Distribution? 1 eCommerce and big retail, this is a hardware business. Not to mention, the cable/Internet companies have the distribution via rented modem boxes for now.
6. Durability? 1 What's to prevent the Internet providers from making their solution marginally better? E.g. TiVo and other DVR solution
7. Secret? 2 Helicopter parents are a large

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