The Rules:
Every week I breakdown startup pitches with the added hook that you can invest whether you’re accredited or not (if you don't know what that means, click here).
I base my review on a 3-minute founder pitch and some light diligence.
My scoring system is not a validation of idea, or grading for likelihood of success. It just means, all things being equal at launch — this startup has these boxes checked.
What I look for:
Founder — ability to lead, sell into and influence a given market
Idea — is it inevitable or solving a BIG problem in a scaleable way
TAM — how big is the total addressable market
Traction — do they have meaningful early traction
Unfair Advantage — do they have a competitive edge
★★★★☆
Company Overview
Quantum Music has developed a platform that matches Asian influencers with global brands. 👉 Check the Charts 📈
Key People: Quan Zhang (former VC at Guild Capital) and Quanwei Hu (cofounder of Crazart Studio)
Traction: Quantum Music is going after the Asian influencer economy which is growing exceptionally fast. In China alone, the iResearch Consulting group forecasts the market to surpass $35B by 2021. They solve the mismatch between Asian influencers and global brands by building a gig marketplace — by helping brands select an optimal group of affiliated influencers to partner with through structured marketing campaigns that track & analyze results.
Over 300 influencers have already joined the Quantum Music marketplace helping them 2x revenue over the past 12 months.
Terms & Takeaway
Invest in Quantum Music here 👉 Term Sheet
Security Type: Reg CF
Value Cap: $10,000,000
Raised (as of publishing): $72,294
Minimum Investment: $100.00
Here's what I like: As you may know, I co-founded a company called Songfinch which has seen extroirdinary growth over the past 18 months due largely in-part to the rapid growth taking place in the influencer/creator space. Quantum is experiencing something very similar, and it’s not likely to fade anytime soon. The Asian influencer economy is usually about 2 steps ahead of the US market; if that gives you a peak into just how massive the opportunity is for QM. At $10M, there’s tremendous upside here and while I do think the space will get crowded fast — Quantum has the early lead.
Here's what I don't love: As I left off above, competition will be fierce. Additionally, Quantum doesn’t have any discernable differentiators that will create moat other than first-mover advantage. I think the team is very smart and capable, but should TikTok decide to build the solution internally — they have the algo that decides the fate of the world. On a purely, ‘over-weight/under-weight’ basis, Quantum Music looks great; but valuation vs risk doesn’t mean much if you don’t fully control your fate.
Who should invest and why: As a value investor, ignoring Quantum Music would be a mistake — even the biggest loser in the space is likely to see a pretty return. Of course, the winners will clean house and I don’t see any reason why Quantum won’t have a seat at the table. If you don’t understand why TikTok is a thing, I’d prolly sit this one out. If you know how many followers you have on social, it’s worth $100 to be a part of the ride.
As always, startup investing is super high-risk, anything can happen.
Invest in Quantum Music here 👉 Term Sheet
Questions, DM me 🤳 @kitun.