Deal Abstract

A digital brokerage platform that makes smart investing engaging

Two Harvard alums are teaming up to make a subscription model Robinhood. Can they build the media strategy to pull off a third commission free brokerage?

NOTE: this company appears to have been pulled. Not sure what's going on, but will update when I see any.

Financials (VRB)

Question Notes
1. Fundraising Target? $1000000
2. Fundraised So Far? $1000
3. Pre-Money Valuation? $10000000
4. Previous Year's Annual Revenue $54660
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-874369

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

Criteria Yes/No
1. A startup that is based in SV? False: New York, NY
2. Has at least 2 founders? True: Two
3. Has product in the market? True: Revenue generating
4. 6 months of continuous user growth or 6 months of revenue? True: 2019 revenue went from $17k to 2020 revenue $54k
5. Notable investors? False: No one I recognize
6. Post-funding, will have 18 months of runway? False: Burn really high

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

Question Score Notes
1. Engineering? 2 How is this better than
2. Timing? 1 I fear that it's late
3. Monopoly? 1 20k users is impressive, but not a large amount compared to RH and Public
4. People? 2 People are fine but not much entrepreneurial experience
5. Distribution? 2 Can get users, as they already got 20k
6. Durability? 1 Fee free trading as a platform, even with social aspects, is not durable without star power/network effects of influencers
7. Secret? 1 Charging $5/mth is enough to beat Robinhood's or Public's business model

What has to go right for the startup to return money on investment:

1. Stop the hemorrhaging of cash; 2. Get influencers on the platform; 3. Provide consistent actionable content that is worth the $5/mth subscription fee

What the Risks Are

1. Vitamine, not a painkiller feature of social

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