B2C2B Company wants to build the next professional learning/coaching marketplace. Can it learn from Coursalytics, whom I covered in summer 2019?
|1. Fundraising Target? |$1080000|
|2. Fundraised So Far?|$53050|
|3. Pre-Money Valuation?|$7500000|
|4. Previous Year's Annual Revenue |$43196|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-144973|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Marina del Ray, 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: Grew from 2018|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Yes, at ~$250k will have 18 mths|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Probs better than stuff separate, but not that much better|
|2. Timing?||2||Good timing to be in this sector|
|3. Monopoly?||1||Not a lot of revenue comparatively|
|4. People?||2||Good team but not much information on individual founders|
|5. Distribution?||1||Needs business relationships to be able to sell this product|
|6. Durability?||2||It's a marketplace so if built, will be defensible|
|7. Secret?||1||COVID has forced the digitization of online coaching classes faster than pre-COVID times|
What has to go right for the startup to return money on investment:
1. Increase revenue; 2. Build out scalable model of acquisition; 3. Not just be a distributor/appt booker/accountability but eventually become a LMS (learning management system)
What the Risks Are
1. Modest revenue; 2. What's defensible about this product vs Coursalytics?; 3. What's the unfair advantages?
Bonus Muhan's Notes
I covered a company called Coursalytics raising in June 2019 (!!!) that was raising at a $2.5m valuation cap with $168k in revenue, backed by Jason Calacanis. That company I have not seen any updates from recently. But Viveka would have to compete against a Coursalytics from a metric standpoint to catch my attention.
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
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