New bank trying to create a marketplace where for every dollar you spend, it automatically locks up some of your funds in forced spending. No revenue, alleged connection to Acorn, and at best, a vitamin not a painkiller.
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The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||No: Irvine, 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.||No: 2018 to 2019, no revenue|
|5. Notable investors?||No|
|6. Post-funding, will have 18 months of runway||Yes: Raised $898k in runway and 2019 burn was $130k, so 6.9 years.|
The 7 Thiel Questions (ETMPDDS)
- The Engineering question (Can you create breakthrough technology instead of incremental improvements?):
- Bad: Totally an incremental improvement. Why not just have your paycheck auto deposit into two accounts? How is this better than Betterment’s cash sweep feature?
- The Timing question (Is now the right time to start your particular business?):
- Bad: See point 1.
- The monopoly question (Are starting with a big share from a small market?):
- Bad: Never heard of this company before today.
- The people question (Do you have the right team?):
- Average: Here’s Ingrassia’s LinkedIn, not even seeing Acorn on here. Link.
- The distribution question (Do you have a way to deliver your product?):
- Average: App store.
- The durability question (Will your market position be defensible 10 and 20 years into the future?):
- Bad: Literally any bank that does an auto allocation of bank account competes with this product.
- *What is the hopeful secret? (Have you identified an unique opportunity that others don’t see?):
- Millennials aren’t saving because of lacking nominal features, as opposed to, you know, having lower income and higher costs of living than their predecessors.
What has to go right for the startup to return money
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