Modern Mint.com targeted to a premium user base wants to make money by charging you for a SaaS platform. Can they pull off a $130m exit a la Mint.com to Intuit?
|1. Fundraising Target?||$1000000|
|2. Fundraised So Far?||$131000|
|3. Pre-Money Valuation?||$10000000|
|4. Previous Year's Annual Revenue||$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$0|
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?||False: Pre-product|
|4. 6 months of continuous user growth or 6 months of revenue?||False: Pre-revenue|
|5. Notable investors?||False: First outside money|
|6. Post-funding, will have 18 months of runway?||True: No net income|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Slightly better Mint.com|
|2. Timing?||2||More self admin investors|
|3. Monopoly?||1||No market share|
|4. People?||2||Good CEO but only dude|
|5. Distribution?||2||No big brand name for adoption|
|6. Durability?||2||Couldn't anyone with a Plaid developer account do this?|
|7. Secret?||2||Self managed financial customers will pay money for a financial dashboard, or somehow this company beats Mint.com at their business|
What has to go right for the startup to return money on investment:
1. Capture a premium market a la Mint.com; 2. Go to market and monetize; 3. Find ways to make money besides just information and advisory, probably start to offer proprietary financial products at some point
What the Risks Are
1. Pre-revenue; 2. Nice to have not an urgent painkiller; 3. Still a one-man product not a business yet
Bonus Muhan's Notes
Love to see it but need to see more business fundamentals before believing this is worth $10m
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.
Other thoughts, questions, comments, or concerns? Write me at firstname.lastname@example.org and let me know.