Mint.com for various financial brokerages that compiles a social network of all your friends public trades. Slick product, but can they build a solid business?
|1. Fundraising Target?||$500000|
|2. Fundraised So Far?||$46075|
|3. Pre-Money Valuation?||$20000000|
|4. Previous Year's Annual Revenue||$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-23900|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Santa Monica, CA|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||False: No revenue|
|4. 6 months of continuous user growth or 6 months of revenue?||False: No revenue growth|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Only needs $36k, but the company is not doing much interesting yet|
|1. Engineering?||4||Slick app that integrates well with all traders|
|2. Timing?||2||Lots of traders nowadays|
|3. Monopoly?||3||Solid user base in less than a year|
|4. People?||3||Strong team, even with the background in financial services|
|5. Distribution?||3||God to good number of users|
|6. Durability?||4||Strong network effects|
|7. Secret?||2||Building proprietary technology for watching trades will build the ideal case for traders to congregate|
What has to go right for the startup to return money on investment:
1. Monetize using one of the financial routes chosen; 2. Grow increasingly fast; 3. Integrate well into existing social networks in addition to building exclusive content
What the Risks Are
1. Business model risk, what happened to the Quantopians of the world? (Yikes, shut down last November: https://en.wikipedia.org/wiki/Quantopian); 2. Relying on proprietary information from other sites is always a compete/collaborate pressure; 3. While I don't see Fidelity building any type of innovation on this, I could see RH or WeBull or Public taking this market better with more capital and direct business model via the brokerage model.
Bonus Muhan's Notes
Super cool, honestly liked the company more than I expected.
This is where I’ll post updates about the company. This way all my notes from offering to post-offering updates will be on one page.
Review these deal memos every time the startup raises a new round
Test if original thesis still applies
Notice trends in how you think
So, did I invest?Click here to find out.
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