Pre-revenue fintech company for emerging companies wants to be the PayPal/Square/Venmo/Braintree. Burned $1.1MM in 2018 and 2019, each, raising money at a $30MM valuation. Will only raise ~7 months of runway at present fundraising terms.
Shout out to reader John for forwarding me the deal!
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The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||No: New York, NY|
|2. Has at least 2 founders||No: 1 (CEO holds 86.2% of the equity.)|
|3. Has product in the market||Yes|
|4. 6 months of continuous user growth or 6 months of revenue.||Yes: Users grew from 688 to 3239 in six months.|
|5. Notable investors?||No|
|6. Post-funding, will have 18 months of runway||No: Burned $1.1MM in 2018 and 2019, each, currently raising max $700k which is 7.6 months of runway.|
The 7 Thiel Questions (ETMPDDS)
- The Engineering question:
- Bad: not seeing fundamentally any new technology.
- The Timing question:
- Uncertain: Good for fintech but this company is trying to be PayPal/Square/Venmo/Braintree for emerging markets and I’m not sure they’d do it besides better than the OGs.
- The monopoly question:
- Good: if they could actually build it, this would be great. But the level of capital to build this is far exceeding their non-existent revenue.
- The people question:
- Eh: Not seeing anyone with fintech experience prior.
- The distribution question:
- Bad: Marketing to consumers is straightforward, but getting businesses onboard not easy.
- The durability question:
- Good: if they could build it.
- *What is the hopeful secret?
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