|1. A syndicate lead who has been investing for at least five years and has at least one notable, unicorn investment||Fail: Not sure who the syndicate lead is, this question may be defunct for all SeedInvest deals|
|2. A startup that is based in Silicon Valley||Fail: No, this startup is based in Los Angeles, CA.|
|3. A start that has at least two founders (with two, you have a backup in case one quits)||Fail: No. One founder. Two previous co-founders both left the business and returned equity with non-competes.|
|4. A startup that has a product or service that is already in the market (you’re not qualified to invest in startups that haven’t released their products—and frankly you don’t need to take this risk.)||Pass: Had 1.8MM in revenue for 2016, $836k revenue in 2017. (Decrease in revenue?!)|
|5. A startup that has either (a) six months of continuous user growth or (b) six months of revenue.||Pass: Has six months of revenue, and has grown 400% from May to July (upon releasing new ad-sponsored product)|
|6. A startup that has notable investors.||Pass: 500 Startups, and several big wigs in media.|
|7. A startup that, post-funding, will have eighteen months of cash remaining, commonly referred to as runway (ask the founder and syndicate lead how many months of runway they will have post-funding)||Pass: Yes, $20k in burn a month, $480k raised, so 24 months of funding at current burn (though burn will increase for growth.)|
- As someone who is bilingual, I personally know the draw of content and media in an ethnic/non-English language. Although I am not a customer of these services (yet,) I personally know Chinese language community members that pay for services like iTalkBB, and the presence of “niche” platforms like Walter Presents demonstrates a novel market for specialized media.
- The pricing and timing is right: at a valuation of $8MM it’s a little higher
Want to read the whole post?
You don't have access to this post on Startup Investing for All by Muhan Zhang at the moment, but if you upgrade your account you'll be able to see the whole thing, including comments, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.