Weekly Roundup: Go Figure 🍎

Happy Friday, DVC! AI robotics company Figure recently unveiled “Figure 01” - an advanced, ChatGPT-powered robot. In its “game-changing” demo, the humanoid robot correctly identified 3 objects on a table before picking up and physically handing over an apple.

It appears no one is safe in the AI economy… We wish all the Apple-Hander-Outers good luck for their job searches and are sounding the alarm for anyone doing last-yard delivery of oranges.

Startup Discussion & Weekly Poll:

Last week we covered the recent absurdity in the crypto markets (aka “business as usual”) and discussed the importance of being able to spot red flags in potential investments.

We also introduced our crowdsourced “Red Flag Checklist” and asked for your contributions! Today we’ll highlight some of the submissions and why they’re important:

1. Raising RegCF Funds as a “Last Resort”:

• If a company launches a Community Round with no external support (i.e. no VCs) and little/no cash in the bank, investments from the crowd are only “keeping them alive”, not growing the business.

2. Deal Structure is an “Uncapped Note”:

• An “Uncapped Note” means no valuation has been assigned to the deal and your investment will convert to equity at the next official funding round. For example, if you invest in an Uncapped Note when the company is actually at a $5M valuation but only receive equity later at a $50M valuation, you took on the most risk while missing out on a 10X increase in value.

3. The Valuation is Overpriced:

• If the valuation is higher than you think the company is truly worth, it raises the odds of a future “down round” and makes it hard to earn a high enough return to justify the risk. Simply, finding “the next Uber” only matters if it actually earns you a profit.

4. Company’s IP is Owned Solely by the Founder:

• Sometimes you’ll see companies whose intellectual property (IP) is owned by another company controlled by the founder. In other words, the company is paying the founder for use of the IP. If the company fails and/or the IP is sold, the money would go to the founder, not you as an investor.

But wait… there’s more! View the full checklist:

These were only some of the red flags submitted. We’ll keep the full checklist as an evergreen resource for the Doriot community and will keep adding to it over time! View and save the link here:

Vote for New Deals:

Help select DVC's future deals! Please view the options, upvote your favorites, and suggest your own!

New companies suggested this week:

• Sorbiforce, Miso Robotics

Deal Review #78 Update - KingsCrowd:

In case you missed it, this week we’ve been looking at KingsCrowd - a startup building a data and analysis platform to power the alternative investing revolution.

This week we had a chance to speak with KingsCrowd’s founder & CEO Chris Lustrino about the company’s progress and current Community Round on Wefunder!

Catch the recording here and check the Doriot Discord for follow-up updates Chris was able to provide after the call.

Deal Review #77 Update - Sholder:

While last week we shared that mental health startup Sholder had agreed to a live discussion with Doriot Venture Club, this week they cancelled to “reprioritize new opportunities” :/

Interestingly, the founder shared that the company launched its campaign as a courtesy to its non-accredited community. While they expect to hit their minimum $50k goal on Wefunder (Note: our primary concern), they did not intend to make it a “top priority”.

For those interested, we’ll share the founder’s full answers in Discord and keep the Venture Pool (for Investing Members) open through the end of next week.

DVC Portfolio Updates:

Overplay (Deal #55) - Good Day, Philly:

After its Shark Tank debut, gaming startup Overplay made an appearance on the “Good Day Philadelphia” morning show to talk about their deal with Mark Cuban and recent growth! See full update.

Miso Robotics (Deal #8) - “Pease Invest, Unregistered Guest”:

In an email addressing me as “Unregistered Guest”, fast food robotics startup Miso announced it is raising a new round of RegA+ funding! While there has been no change in the share price or valuation, Miso notes recent progress on its “Flippy” prototype and restaurant partnerships. See full update.

Thank you for reading & participating! Have a great weekend and see you for more DVC action next week!

Sincerely,

Team DVC