Mature startup is kicking off the $5m new SEC raise limits. Almost finished round within 24 hours of launching. Marketplace for digital goods trying to enter the subscription economy.
|1. Fundraising Target?||$5000000|
|2. Fundraised So Far?||$4891362|
|3. Pre-Money Valuation?||$100000000|
|4. Previous Year's Annual Revenue||$4923912|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$288092|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||True: San Francisco, CA|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Grew by 1.6m in revenue from 2019 to 2020, so nearly 50%|
|5. Notable investors?||True: Greatest hits, so many famous inveestors|
|6. Post-funding, will have 18 months of runway?||True: Profitable, so interesting that they're raising|
|1. Engineering?||2||Engineering is good, but not 10x better. Stripe, Ghost, Substack, Patreon, etc. all offer recurring revenue for subscription.|
|2. Timing?||3||Creator economy definitely flourishing, but as someone in the creator economy, I didn't really think of Gumroad when building my subscription business|
|3. Monopoly?||2||Has a good amount of marketshare, but again, as someone in the creator/digital goods space, I don't know anyone using Gumroad|
|4. People?||2||Founder seems good but not noticing much of a team|
|5. Distribution?||3||Very good, heavy weight investors and strong brand|
|6. Durability?||3||Once creators are on the platform and the fees are reasonable, inertia is high. Switching from WP to Ghost for me was a pain.|
|7. Secret?||3||Taking the sales of digital courses and e-products and pivoting to subscription will take Gumroad to unicorn|
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