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.
|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)
|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|
|1. Engineering?||2||How is this better than Public.com?|
|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 aspect; 2. Too late with RH and Public already taking this market very far; 3. Not doing 'pay for order flow' or 'media business' well so therefore being stillborn business
Bonus Muhan's Notes
Will be curious to see content strategy
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Review these deal memos every time the startup raises a new round
Test if original thesis still applies
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