Famous e-sports gamer leverages his brand, audience, and production studio to develop a full strategy card game.
|1. Fundraising Target?||$1070000|
|2. Fundraised So Far?||$520189|
|3. Pre-Money Valuation?||$30000000|
|4. Previous Year's Annual Revenue||$2194514|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-2315250|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Long Beach, CA|
|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: Modest growth|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||False: Needs $3m for 18 mth runway|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||1||No engineering, just a game development studio|
|2. Timing?||2||Good time for e-sports|
|3. Monopoly?||3||Great community|
|4. People?||5||Honestly couldn't ask for a better team|
|5. Distribution?||5||Fantastic distribution|
|6. Durability?||2||It's a game studio/media company, not much differentiation|
|7. Secret?||1||Game studios can make good venture bets|
What has to go right for the startup to return money on investment:
1. Launch game; 2. Print money and sell booster packs at high margins; 3. Focus on what makes money in the business
What the Risks Are
1. Split focus and attention, doing alot; 2. Videogames and media aren't venture backable; 3. Making a good game is one thing, making a crazy lucrative game is another thing
Bonus Muhan's Notes
This is where I’ll post updates about the company. This way all my notes from offering to post-offering updates will be on one page.
Review these deal memos every time the startup raises a new round
Test if original thesis still applies
Notice trends in how you think
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at email@example.com and let me know.