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
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