Deal Abstract

Splitwise/Venmo/Payroll/Shopping portal for families. Has burned several million to build a platform for parents to assign tasks, compensate kids with chores, then capture revenue from teenagers shopping. Asks interesting questions about the business models of companies like Overtime, Mint, Splitwise, and Venmo.

Financials (VRB)

Question Notes
1. Fundraising Target? $6m
2. Fundraised So Far? $2m
3. Pre-Money Valuation? $26m
4. Previous Year's Annual Revenue $95k
5. Previous Year's Annual Burn ~$3.1m

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

Criteria Yes/No
1. A startup that is based in SV? No: Waltham, MA
2. Has at least 2 founders? No: One CEO founder, only one with 3m shares of stock
3. Has product in the market? Yes
4. 6 months of continuous user growth or 6 months of revenue? Yes: 2018 revenue to 2019 revenue increased from $450 to $95k.
5. Notable investors? No: none that I see.
6. Post-funding, will have 18 months of runway? No: Would need 4.5m for 18 mth of runway, only at 2m at present, needs to double.
Current Capitalization Table

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

Question Score Notes
1. Engineering? 2 It's like Splitwise for families, aka imo a vitamin not a painkiller
2. Timing? 2 Theoretically good with more millenials becoming parents, but why would parents just use Venmo and Google Calendar at most?.
3. Monopoly? 2 Downloads and such seem good, but that's a lot of value creation and not a lot of value capture.
4. People? 2 Founder seems fine but no recognizable successes/brand affiliations.
5. Distribution? 2 Not bad, not great.
6. Durability? 1 Like Splitwise, this is the part I don't understand, if this becomes valuable enough why would Venmo just build these features in?.
7. Secret? 2 Families can't use Venmo/other normal personal finance apps to coordinate chores/allowance for kids, and that targeting this side with ads like will

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