Power Poll Deal Memo (Closing Date: 2021-05-14)

Muhan Zhang -

Deal Abstract

Power Poll
Non-partisan survey, news, & information platform
SeedInvest

Startup that wants to redefine the accuracy of polling programs by curating a premium community.

Financials (VRB)

Question Notes
1. Fundraising Target? $500000
2. Fundraised So Far? $47600
3. Pre-Money Valuation? $3500000
4. Previous Year's Annual Revenue $228000
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-112965
Source

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: Nashville, TN
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: Revenue grew
5. Notable investors? False: No one I recognize
6. Post-funding, will have 18 months of runway? True: Needs ~$200k

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

Question Score Notes
1. Engineering? 2 Not sure how the tech is better
2. Timing? 2 Polling is at lowest
3. Monopoly? 2 Fine revenue but I've never heard of them vs. Luc.id and True Public
4. People? 2 Team seems good on corporate side, but uncertain if scrappy enough to move fast on Polling market
5. Distribution? 3 Team has good connections with industry
6. Durability? 1 Lots of polling companies and not sure where the defensibility is
7. Secret? 1 Using forms and polling online will build a better polling solution than existing solutions

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

1. Meaningful differentiation; 2. Better predictive power; 3. Distribution into key poll providers/more people want self-service polls

What the Risks Are

1. Stagnant market; 2. Ambiguous value prop; 3. Polling is dying

Bonus Muhan's Notes

There's def a need for better sentiment analysis of population, but is polling the right way?

Updates

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Review these deal memos every time the startup raises a new round

Test if original thesis still applies

So, did I invest?

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Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.