Deal Abstract

SaaS company hoping to sell a dashboard to C-suite executives, starting out with CMOs. They have revenue, and want to make consulting work more integrated via data. Possibly like (which collects and demonstrates all your financial info in one place) for C-Suite or Geckoboard. Already has sales with large enterprise CMOs of Sephora and Frontier technology.



Why Investing/Passing

  1. Passing because despite having large famous customers and seemingly legit VC team, not seeing the vision.
  2. Revenue dropped from 2019 to 2018. Crude but clear signal of not gaining further clarity on what the business is.
  3. Even if the product works, it’s providing a value that seems incremental rather than a magnitude greater.

The 6 Calacanis Characteristics (91 161 18)

1. A startup that is based in SVPass: Oakland, CA according to LinkedIn.
2. Has at least 2 founders Pass (3+ Head of Sales & Marketing)
3. Has product in the market Pass
4. 6 months of continuous user growth or 6 months of revenue.Fail: (2019 revenue was 120k, 2018 revenue was 166k.)
5. Notable investors?Shasta Ventures, who seem legit, but I don’t know anyone from this team from my knowledge of VCs. Apparently they invested in Canva, Dollar Shave Club, Hinge,, Nest, Turo, Zuora, etc.
6. Post-funding, will have 18 months of runway Pass: 2019 burn was 273k and targeting 2.5M was raised, giving 9.15 months of burn.

The 7 Thiel Questions (ETMPDDS)

  1. The Engineering question:
    • Probably bad: how much better is this company compared to Google Sheets/Zapier/Geckoboards of the world? If you’re selling to CMOs that’s all well and good but doesn’t scale tremendously.
  2. The Timing question
    • Bad: it’s cheap to build SaaS, conceded. But uncertain why this particular time is when CMO’s/execs will suddenly adopt executive dashboards by a large magnitude of order.
  3. The monopoly question
    • Bad: Again, already plenty of dashboards/pivot tables/etc for people

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