Imagine a social network that pays you to use it. But how much advertising revenue would it generate in this model?
|1. Fundraising Target?||$1070000|
|2. Fundraised So Far?||$243464|
|3. Pre-Money Valuation?||$18700000|
|4. Previous Year's Annual Revenue||$584727|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$338361|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Aloha, OR|
|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: Solid revenue growth|
|5. Notable investors?||False: Nah|
|6. Post-funding, will have 18 months of runway?||True: Profitable|
|1. Engineering?||2||It's like Facebook/Instagram/SocialX but it revenue shares with you?|
|2. Timing?||1||Don't see demand for rev sharing social network taking off at this point in time|
|3. Monopoly?||1||35000 users is not much in the social media game|
|4. People?||1||Not much information about the founder|
|5. Distribution?||1||Hard to acquire users|
|6. Durability?||1||What's stopping Facebook from implementing this feature if they like it?|
|7. Secret?||1||Revenue sharing is enough to attract the majority of social network users to switch to this new app|
What has to go right for the startup to return money on investment:
1. Continue acquiring users cheap; 2. Deepen value prop besides privacy and pay per use; 3. Get exclusive content/content is king in any network media play
What the Risks Are
1. Vitamin not a painkiller; 2. Very niche offering; 3. Facebook could probably clone this feature in a week if they cared for it
Bonus Muhan's Notes
Interesting idea, will be curious to see how privacy and social media go in the coming years
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Review these deal memos every time the startup raises a new round
Test if original thesis still applies
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