Thumbtack for grant writers and grant applicants. Good revenue and users, but can it scale?
|1. Fundraising Target?||$500000|
|2. Fundraised So Far?||$128251|
|3. Pre-Money Valuation?||$7000000|
|4. Previous Year's Annual Revenue||$189000|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$459881|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Sacramento, CA|
|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: Up and to the right|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Needs roughly $750k|
|1. Engineering?||2||Managed marketplace for grants application|
|2. Timing?||2||Good time to build marketplaces, but not sure this market is growing venture sized|
|3. Monopoly?||3||Pretty niche space, but good user numbers in small niche|
|4. People?||2||Team seems skilled but no one with a managed marketplace background in a related field|
|5. Distribution?||2||Building the marketplace would benefit from someone who has a lot of sway in the industry|
|6. Durability?||3||Feels pretty defensible|
|7. Secret?||1||Grants and the demand for grant writers/consulting work is about to grow at a venture paced speed|
What has to go right for the startup to return money on investment:
1. At one point, OpenGrants should take a percentage of money it helps organizations secure; 2. Streamlining and processing of all standard grant opportunities into one place, almost like a common app; 3. Figure out who is the real customer, people giving grants or people looking for grants
What the Risks Are
1. Philanthropy doesn't appear to be a venture sized market; 2. There is already a network of grant writers and applicants who connect offline/through other marketplaces; 3. What benefit does the platform add to the process?
Bonus Muhan's Notes
Great mission, but will it make a great investment?
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
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