Deal Abstract

Famous e-sports gamer leverages his brand, audience, and production studio to develop a full strategy card game.

Financials (VRB)

Question	Notes
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

Source

The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)

Criteria	Yes/No
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

Source

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question	Score	Notes
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

Updates

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?

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Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.