A founder building a sports fan app projected $3 million in revenue by year 7. VCs need $100 million-plus outcomes. The math showed this startup wasn't venture-backable, no matter what the pitch said.
We were working with this company the other day. He was building this mobile app for like sports fans. Built one for him. And what he found out after he put in some values into those assumptions was that the way he had envisioned the business then didn't make sense. So if we put in reasonable assumptions for the way he had envisioned this business, and what we found out is that at the, At year 7 on the spreadsheet, this was a $3 million business, like a business that was making $3 million a month. And that's not a venture-backable business, right? And he, that was his intention, right? So he was trying to pitch this business as this, as a venture-backable business, but his numbers, he was, he couldn't find a way to make his numbers work to make that the $100 million company that these VCs are probably gonna be after.
