B2B SaaS company for managing portable benefits and contributions for gig workers. Founders have the right credentials, but the product is very early and needs more traction.
|1. Fundraising Target?||$500000|
|2. Fundraised So Far?||$155638|
|3. Pre-Money Valuation?||$5000000|
|4. Previous Year's Annual Revenue||$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-30276|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||True: Palo Alto, CA|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||True: Paid pilot is bulk of customers|
|4. 6 months of continuous user growth or 6 months of revenue?||False: 'Our revenue is minimal as we have been experimenting with different Per Employee Per Month (PEPM) rates and how that grows with more benefits.'|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Only needs ~$50k for 1.5 years of burn|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Seems like a nice feature, but not sure that this is that much better than other contribution software, also hard to figure out what category of SaaS this is|
|2. Timing?||2||Seems reasonable that there is huge growth in this customer segment, but not sure people are going to contribute at high rates to this|
|3. Monopoly?||1||Very little market share|
|4. People?||4||Cofounders seem very strong|
|5. Distribution?||2||Distribution through small businesses a work in progress|
|6. Durability?||1||Not sure how durable this is, given that it's a feature that directs contributions|
|7. Secret?||2||The cost of providing benefits to part-time workers and hourly workers was too high for people to contribute before|
What has to go right for the startup to return money on investment:
1. Refine business model; 2. Get more customers; 3. Deepen value proposition
What the Risks Are
1. Feature not a company; 2. Vitamin not a painkiller; 3. Is the main customer the workers who get and keep the benefits after they leave the company, or the employer?
Bonus Muhan's Notes
I personally found this to be a bit confusing as a B2B SaaS company, is isn't payroll, but it doesn't fit into the stuff that I'm used to seeing for a company
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Review these deal memos every time the startup raises a new round
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