Managed marketplace for advertisers to find influencers who will repost their content. Generated $125k in revenue in Q4, tripling revenue in a quarter. Has some tricky issues to resolve whether serving the most inexpensive market is a sustainable business, and whether the value hypothesis of streamlining content doesn’t eviscerate influencer value add.
Shout out to reader John for forwarding me the deal!
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The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||No: Santa Monica, CA|
|2. Has at least 2 founders||Yes: No (Has four in C-Suite but only CEO has meaningful voting power)|
|3. Has product in the market||Yes|
|4. 6 months of continuous user growth or 6 months of revenue.||Yes: 2019Q4 was $10k, 2020Q1 was $31.5k, 2020Q2 was $125k.|
|5. Notable investors?||No: Looked through ExpertDojo and Dzhel Ventures and don’t recognize any portfolio companies or the funds founders.|
|6. Post-funding, will have 18 months of runway||No: 2019 burn was $706k, targeting $1MM in funding so coming in right around 17 months of runway.|
The 7 Thiel Questions (ETMPDDS)
- The Engineering question:
- Good: assuming that businesses spending $3k-$5k a year on advertising don’t have any way of getting influencers at scale with accountability, this product is definitely better than the alternative.
- The Timing question:
- Good: Ad-pocalypse and budget-strapped influencers means there should be more demand on both sides of the marketplace.
- The monopoly question:
- Good: Network effects for micro-influencers and micro-brands spending money. Can scale quickly.
- The people question:
- Fine: Team seems fine. CRO has particularly relevant experience, CEO has executive experience with online companies and e-commerce.
- The distribution question:
- Good: They’re a marketing company trying to get advertisers and influencers to
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