Husband/wife duo are teaming up to build a marketplace and business management platform for nail salonz. B2B SaaS marketplace, but can they scale fast enough to be venture backable?
|1. Fundraising Target?||$1070000|
|2. Fundraised So Far?||$193931|
|3. Pre-Money Valuation?||$10000000|
|4. Previous Year's Annual Revenue||$69932|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-889968|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: New York, NY|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Revenue more than doubled from $28k to $69k|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: If they raised $1mm, but it doesn't look likely at present|
|1. Engineering?||2||Better than nothing, but is it 10x better than Booksy or HellaBella?|
|2. Timing?||2||Good time to make marketplaces|
|3. Monopoly?||4||Credit where credit is due, has gone deep on Manhattan and has 20% of market|
|4. People?||3||Husband and wife together, harder to get incentives more aligned :)|
|5. Distribution?||2||No clear advantage to onboarding new customers, though the quantity is impressive|
|6. Durability?||3||If they can build it, I could see this being the Grubhub of nails for the East Coast (Grubhub vs Eat24 vs the reset of the food wars)|
|7. Secret?||2||Millennial beauty customers are expecting a digital first booking and reservation system, and Snailz is going to build that marketplace|
What has to go right for the startup to return money on investment:
1. Control spend and scale more efficiently, I believe it's at 176k in revenue for 2020 but need to see costs; 2. Grow more rapidly, the business has been around since June 2017, has 350 salons for 1.3m in bookings (20% of Manhattan network,) 3. Take learnings from Manhattan expertise and bundle it up in a faster go to market strategy
What the Risks Are
1. Fragmented marketplace, Booksy is already tackling this market and has Series C funding; 2. Adoption speed not fast, uncertain how ready nail salons are in adopting SaaS (though to be fair, as owners turn younger, I'm sure this will change,) 3. Pricing structure, 13% is not cheap for a small business and services industry at this level already have a lot of costs
Bonus Muhan's Notes
Very cool to see this; I know nails and salons are an industry but have not had personal experience with them.
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