Deal Abstract

https://www.seedinvest.com/osiris.media/seed/

Podcast network with 30 podcasts, 1.7MM downloads wants to raise money. Distinguishing characteristic is looking to deliver “podcasts, video, and live events, creating commentary and experiences for music fans to delight and inform—while helping companies connect with a difficult to reach demographic in an authentic way.”

Decision

No.

Why Investing/Passing

  1. “Want to make a million dollars in media? Start with a billion.”
  2. Besides content, not seeing much that is engineering 10x or monopoly/durable in Thiel terms.
  3. Solid media company, and while it’s impressive that Gimlet sold for $200MM in 5 years of founding, I’d say that’s the exception to the rule. (Alex Blumberg and NPR all-star team were essentially masters of their craft but under market value.)

The 6 Calacanis Characteristics (91 161 18)

CheckPass/Fail
1. A startup that is based in SVFail: (Princeton, NJ)
2. Has at least 2 founders Pass
3. Has product in the market Pass (barely monetized)
4. 6 months of continuous user growth or 6 months of revenue.Pass (83% growth of user base)
5. Notable investors?Pass: Andy Weissman (USV)
6. Post-funding, will have 18 months of runway Fail: at present raise of $300k, they can last for 18 years, but spending is definitely going to go up.

Raised $306,983, burn is $18k for 2018. Revenue was $9k.

Osiris Media Financial Summary (Hosted link.)

The 7 Thiel Questions (ETMPDDS)

  1. The Engineering question:
    • Bad: Nothing cohesive besides processes, maybe.
  2. The Timing question
    • Bad: Not a bad time to start podcasting business, but why this music niche?
  3. The monopoly question
    • Bad: no reason to believe there won’t be multihoming in the podcast world.
  4. The people question: 
    • Not


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