Retrospective deal memo for Winc. Raised $4.87MM on $110MM valuation earlier this year in March. Now raising again directly again on their website at $1.75/share, with total outstanding shares of $86M meaning a $150MM valuation if they sell all shares at that price. Had no meaning financial growth from 2014 to 2019.
ESPN for e-sports. Wants to compete again Twitch, Discord, DraftKings/ESPN, to become the one stop shop for all fanatic engagement. Pre-revenue, but has a strong team of founders and investors including founders of Blizzard, lead investor from Twitch’s Series A. Has only raised half a year of runway to date.
Another player in the cash-for-home-equity (as opposed to cash-for-debt) play. Good valuation and thesis, but ambiguous differentiation. From what I can tell, company only generated $20k in revenue and has only raised 5 months of runway.
Marketplace for artificial intelligence development work. Pre-product and pre-revenue. Raised $908k on a $7.5M valuation. In addition to addressing lacks, I also articulate three concrete factors I look for in entrepreneurs that are looking to monetize new markets.
Carabiner and hook clip together. 2019 revenue was more than $2 million with unit sales growing by 18% from 2018 – aggregating over 440,000 units sold since 2018 (unaudited.) Wants to build a lifestyle company on top of the platform of the initial product.
Scientific innovation that claims to save fuel by up to 8%, increases lubrication, decreases dangerous emissions up to 50%. Technology claims to be 800x more effective than competing fuel additives and is priced up to 20x lower. Pre-revenue potential vitamin-not-painkiller that is mainly a team of academics, with no one experienced in B2B sales for energy companies or commercializing scientific innovations.
Marketplace for sellers and buyers of real estate financial instruments. Has nearly $1 million in revenue as of 2019 and in a good position to grow. Valuation at $40mm means I’m auto-out of the deal, but not a bad growth investment for those who like real estate.
Robinhood for options trading. Has lots of brand name investors, but raising on a $25MM valuation with no revenue. Uncertain what the defensible secret is.
Managed marketplace for advertisers to find influencers who will repost their content. Generated $125k in revenue in Q4, tripling revenue in a quarter. Has some tricky issues to resolve whether serving the most inexpensive market is a sustainable business, and whether the value hypothesis of streamlining content doesn’t eviscerate influencer value add.
Managed marketplace for pet grooming. Generated $600k in revenue in 2018, bootstrapped all the way to current valuation of $6 million. Needs to scale up rapidly, but could become a platform for pet-care and expand in a low-regulation market to dozens of cities in the next few years.