Marketplace for musicians and artists to show off their portfolio and sell artistic services.
|1. Fundraising Target?||$1500000|
|2. Fundraised So Far?||$642995|
|3. Pre-Money Valuation?||$20000000|
|4. Previous Year's Annual Revenue||$241511|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-173761|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Los Angeles, CA|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Went from $95k to $241k|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Needs $280k to have 18 months|
|1. Engineering?||2||Marketplace specifically for musicians to sell their services|
|2. Timing?||2||I could see this being a good time to build a marketplace specifically for musicians and artists|
|3. Monopoly?||2||The number of users seem good but the revenue seems middling|
|4. People?||3||People seem really well fit to build this company|
|5. Distribution?||2||Good users|
|6. Durability?||2||Building a good marketplace for these services is a good defensible niche|
|7. Secret?||2||Building a marketplace and Instagram esque portfolio for artists will be a valuable spigot to the music and media business|
What has to go right for the startup to return money on investment:
1. Figure out ways to get membership dues cause having a million users making $300k is very low; 2. Own more of the value creation and capture, right now this company is solving a problem for a very broke population; 3. Create more revenue opportunities for artists
What the Risks Are
1. Niche but not a market with a lot of spending power; 2. Feature not a company; 3. Just providing a marketplace is sufficient, needs to provide SaaS
Bonus Muhan's Notes
Very interesting company, but the marketplace numbers seem a bit low for a company raising at $20m
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 firstname.lastname@example.org and let me know.