Pre-screening today (11/7)

I find that when entrepreneurs "see how the sausage is made" is helps them design their own documents and presentations to get through the gauntlet. Today I am pre-screening new deals coming into my angel group.

"[CompanyName] is a cloud-based video interviewing platform for employers and job candidates… The Company adds a filter into the hiring process between the resume review and the in-person interview and facilitates targeted, asynchronous (not-live), under-5-minute interviews that employers review at their convenience."

The text they used doesn’t stand out much for me (bad). They included a professionally produced video that is essentially a product demo, category evangelizing, and throws in some credibility by showing some reputable startup folks saying nice things (good). Affiliated with some high-credibility incubators/accelerators (good). There is more than enough credibility here for me to bounce it by a few of the people in my group. Time: 3 minutes. Decision: Bounce by specific people in the angel group.

"Centralized repository for healthcare providers to store, manage, update, comply, and share their licensing and credential documents online… We allow providers the capability to store all of their credentialing paperwork online, while we manage and update their information. Our automated notification system will notify providers of when they have obligations coming due and if their information is about to lapse. We also allow open communication and secure e-document transfer between the provider and their affiliated facility and staffing agency to minimize all party’s risk exposure."

I am not an expert on this space, but their story about the problem and their solution sounds credible (good). Market seems large enough, even though it is only implied by the text (good). I don’t have many people with the right expertise (bad). Time: 30 seconds. Decision: Bounce by specific people in the angel group

"[CompanyName] is developing [chemical] a patented oral nonpsychotropic synthetic THC derivative for the treatment of life threatening scleroderma… [CompanyName] is leveraging $20M in prior investment in [chemical] and $400K in prior angel/founder financing to develop [chemical] for a scleroderma (SSc), a life threatening disease. As a result of expected fast track status for SSc and low fixed overhead costs, [CompanyName] believes it can complete a phase II POC trial in scleroderma for less than $1.75M and a pivotal phase II/III trial for less than $15M total. The company will seek exit opportunites at each milestone."

This is a pharma play – those TEND to be very capital intensive (very bad) and have long times to exit (bad). This company claims they are different. I have almost zero pharma experience in my group (bad). This deal is affiliated with another angel group that has more domain experience. Time: 30 seconds. Decision: If another angel group invests and wants to syndicate, reconsider. Until then decline.

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