Building better tools for automatically paying off debt and other fintech needs.
|1. Fundraising Target?||$1000000|
|2. Fundraised So Far?||$150081|
|3. Pre-Money Valuation?||$12000000|
|4. Previous Year's Annual Revenue||$252585|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-245402|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Atlanta, GA|
|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?||False: Revenue dropped from 2019 to 2020|
|5. Notable investors?||True: I recognize RIse of the Rest (Steve Case) and maybe Village Capital?|
|6. Post-funding, will have 18 months of runway?||True: If they can raise the full $360k round then they'll have the full 18 months|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Nice UI/UX but I wonder if it's 10x better than existing solutions|
|2. Timing?||2||People are in a lot of debt, but why would this app be poised to explode now?|
|3. Monopoly?||2||Good traction but very modest revenue|
|4. People?||3||People seem good|
|5. Distribution?||2||Already got a lot of users and helped paid off $20m in debts|
|6. Durability?||1||This is my biggest concern, what's to prevent companies that hold debt from making this feature into their SaaS|
|7. Secret?||1||Helping people pay off debt through basic financial tools is going to be a billion dollar company at this time|
What has to go right for the startup to return money on investment:
1. Go up market and not just serve low income customers paying off debt; 2. Help users make money/create more value and capture value; 3. Build more services B2B for debt owners
What the Risks Are
1. Feature not a company; 2. Fairly replicable technology; 3. Serving a low income population
Bonus Muhan's Notes
Great mission, but not seeing how this is going to be a tremendously large business. Compare to FloatMe.
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
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at email@example.com and let me know.