VIVEKA Deal Memo (Closing Date: 2021–04–30)

B2C2B Company wants to build the next professional learning/coaching marketplace. Can it learn from Coursalytics, whom I covered in summer 2019?

Want to see the complete rich format deal memo? Read the original post at: https://muhanzhang.com/VIVEKA

Deal Abstract

B2C2B Company wants to build the next professional learning/coaching marketplace. Can it learn from Coursalytics, whom I covered in summer 2019?

Financials

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

Six Calacanis Criteria

1. A startup that is based in SV? False, Marina del Ray, CA
2. Has at least 2 founders? False, CEO has 85% voting power
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

Seven Thiel Tests

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

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 Could Go Wrong

1. Modest revenue; 2. What’s defensible about this product vs Coursalytics?; 3. What’s the unfair advantages?

Muhan’s Bonus 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.

So, did I invest?

1. Subscribe to https://muhanzhang.com/ to see my final investment decisions, keep track of my portfolio, and receive ongoing updates on my journey to investing in 50 startups as an unaccredited investor.
2. Read the rich format deal memo here: https://muhanzhang.com/VIVEKA
3. Want me to cover your startup? Submit your ‘Request for Startup’ (RFS) submission here: https://airtable.com/shrzNK8tguH8qEUF6

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