Fintech platform that connects independent auto dealers and lenders.
- Fundraising Target? $1070000
- Fundraised So Far? $557154
- Pre-Money Valuation? $13000000
- Previous Year’s Annual Revenue: $24790
- Previous Year’s Annual Net Income (+ Profitable, — Burning Cash): $4495
Six Calacanis Criteria
- A startup that is based in SV? False, Vernon, CT
- Has at least 2 founders? True, Two
- Has product in the market? True, Modest revenue and profit
- 6 months of continuous user growth or 6 months of revenue? False, Also, very modest revenue
- Notable investors? False, David Weisburd from The Boardroom, but ¯_(ツ)_/¯
- Post-funding, will have 18 months of runway? True, Profitable!
Seven Thiel Tests
- Engineering? 2, Fintech platform for brokering financing for car loans
- Timing? 2, Good timing, brokering financial services makes sense
- Monopoly? 2, Good adoption
- People? 2, Good team, though no obvious wins
- Distribution? 3, Selling b2b to car sellers
- Durability? 3, Network of auto loan lenders and providers is defensible
- Secret? 2, The money to be made to brokering auto loan providers and takers is going to be a $1bn business
What Has to Go Right
- Scale to meaningful revenue; 2. Provide value add either through enriched leads, or more efficiency; 3. Car companies don’t enter the financing game e.g. Tesla
What Could Go Wrong
- Lots of competitors who probably want to enter this lucrative space of brokering car loans including manufacturers; 2. Lack of meaningful revenue; 3. Fragmented industry that might make it hard to scale
Muhan’s Bonus Notes
So, did I invest?
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