- White label AI solution seems inevitable. Just like banks collided together to make Zelle to combat Venmo, it makes sense that automakers worldwide would not be thrilled at Google, Apple, and Amazon holding such stark leadership positions in AI.
- Valuation is right ($5MM, needs to be below $10MM), is a SaaS business. Has a product, early revenue, and Mitsubishi contract going on.
- Chief scientist Bruce Wilcox seems like a legitimate heavy weight.
|1. Ssyndicate lead has >5 years investing and >1 unicorn investment||Fail|
|2. A startup that is based in SV||Pass|
|3. Has at least 2 founders||Pass|
|4. Has product in the market||Pass: Yes, $54k in revenue 2017|
|5. 6 months of continuous user growth or revenue.||Pass: Revenue grew from $1k to $54k in 2016 to 2017|
|6. Notable investors?||Fail: None that are easily identifiable.|
|7. Post-funding, will have 18 months of runway||Pass: Yes, Raised $401k, 2017 expenses were $146k.|
|8. Proprietary technology?||Pass|
|9. Network effects?||Pass|
|10. Economies of scale?||Pass|
|11. Great branding?||Fail (by default)|
- The Engineering question:
- Bad: hard to imagine that this will be better than Google, Amazon, or Apple in the near future.
- The Timing question:
- Bad (by default): not sure if this is a good time, therefore no points on this.
- The monopoly question:
- Good: as with the Zelle analogy, if this is truly adopted wide by card manufacturers for white label, then this could absolutely be the last non-tech affiliated AI virtual assistant solution.
- The people question:
- Bad (by default): lots of things relying on CEO and scientist. CTO is interim.
- The distribution question:
- Bad (by default): the consumer play is going to be very challenging, mainly cause AI needs to work with services. The car question could be good but would require exceptional B2B sales.
- The durability question:
- Good: cheap processing, AI, and SaaS have promising futures.
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