What valuation can the industry can accept?
Based on the information provided in the sources and our conversation history, an explicit,
current valuation for MyStreme is not stated [conversation history]. However, we can
infer what valuation the industry might be willing to accept based on the company’s
fundraising activities, stated assets, and investor feedback.
Here’s an analysis to inform a guess regarding an acceptable industry valuation:
◦ MyStreme is currently raising a $5 million “seed round”.
◦ However, investor Craig Fryar noted that a $5 million raise is “beefy for a seed round” and is “series A territory”.
◦ Daniel Cobb clarified that it’s considered a seed round because a subsequent $15
million Series A round is planned to follow. This indicates a rapid progression in funding expectations.
◦ The current raise involves a $2 million safe note for the first part of the round, with $1million already secured. While the specific valuation cap for this safe note isn’t mentioned, it would imply a pre-money valuation [conversation history].
◦ Strong Leadership Team: MyStreme is led by Dan Cobb, a “23-time, Emmy Award,
winning media executive innovator and multi-patent holder of Aitv” with 30 years of
marketing tech experience managing “$500 million in ad spend” for major brands. Paul Lauer, the President and CFO, is a “20 year movie development and marketing executive” whose films have grossed over “$4.2 billion in box office”. Robert Bush highlights that their “backgrounds are… probably as strong an asset as anything”, and Ed Pearce confirms they “have the background to do it”.
◦ Patented Technology and IP Defensibility: MyStreme has “2 completed, and one
patent pending” that enable content curation and filtering. Critically, Daniel Cobb
addressed significant investor concerns regarding intellectual property (IP), explaining that a “2005 copyright law” allows families to edit content in their homes, and their partner, Clearplay, has technology “tested for 20 years” that has been “upheld in court multiple times” by major studios like Disney and Warner Brothers. Ed Pearce stated that “the patents give a great… IP background to it tremendously important to have patents in this business”, and Robert Bush noted the “patents piece… caught my attention” and is a “huge plus”. This significantly de-risks the business model compared to past failed ventures in content filtering.
◦ Addressing a Major Market Pain Point: MyStreme has done an “excellent job of
identifying a frustrated market” where users are “sick of anything that has the F word in it”, and the industry is “fragmented like pre-spotify music”. The solution to “taking 40 min to find something to watch” resonates strongly with consumers and investors.
◦ Projected Future Returns: MyStreme projects a “path to 100X returns” and
anticipates reaching “break even at about year 3” with “200,000 users”.
Given that MyStreme is seeking a $5 million raise which is characterized as “series A
territory” despite being called a “seed round” by the company, and considering the strength of their patented IP and the extensive experience of their leadership team, the industry would likely accept a pre-money valuation for MyStreme in the range of $15 million to $30 million.
This range aligns with what would be typical for a strong Series A round or an exceptionally well-positioned seed round, acknowledging the significant de-risking provided by their intellectual property and the high credibility of the founders. The “path to 100X returns” also suggests a belief in a substantial future valuation, which necessitates a strong, yet justifiable, entry valuation.
Please note: This valuation range is an inference based on the provided qualitative and
quantitative information in the sources and our conversation history, and not an explicitly
stated valuation by MyStreme or the investors. Real-world valuations are complex and
depend on many factors not fully detailed in the provided excerpts.