Project business idea
Unicorn Nest helps startup founders find investors, connect and stay in touch with investors in one place. The project includes a database of venture investors and AI/ML tools to provide relevant recommendations to investment seekers, automate routine tasks and optimize fundraising campaigns.
The main focus is seed to series B startups that are in the process of raising funds.
Problem
Having a solid business does not guarantee successful fundraising for a startup. Fundraising is a complex, expensive, grueling, and ongoing process for startups.
- The core competency of founders is to build a business, not raise funds.
- Founders spend a total of over 600 hours fundraising with less focus on business.
- Funds are overwhelmed by the incoming flow of transactions. It is very difficult to establish contact with funds without personal contact.
- Communication with hundreds of investors within 3-6 months. the fundraising cycle is onerous.
Market
Venture capital market — $500 billion and 22,000 deals (all rounds raised in 2020, 15% annual growth over the past 20 years).
- PAM (Potential Market Size) - $12 billion spent by startups on fundraising (consultants, legal services, travel, services, etc.).
- TAM (Total Target Market) – A total of $4 billion spent on LinkedIn, Crunchbase, Pipedrive, investor databases, advisors, and other products to support fundraising.
- SAM (Available Market Size) - $1 billion (up to 20% of all startups in the fundraising process can spend $1,000 per year on our products).
- SOM (attainable market size) - $200 million (annual revenue potential in 7 years).
All funds in the Unicorn Nest database are publicly available on their own website. Users have the ability to view funds, find out the latest news and analytics, and save them to return later.
Product
Data collection on investors is carried out in 2 ways:
➜ Automated tools: Web spiders collect structured information from the Internet: VC data providers, social networks, regulations.
➜ Tools for semi-automated machine learning:
A team of junior analysts use their own software to fill the database with additional data from unstructured sources, such as websites of funds and startups, as well as texts from the press and media. This software speeds up their work by 20-30 times.
What information does the user provide?
Unicorn Nest is focused on startups. It is difficult to predict which investor will be interested in a deal. Incorrect search criteria that founders use results in a suboptimal list of investors and a funnel containing less relevant investors.
They need to fill out a simple questionnaire.
As a result, users receive a list of up to 250 funds sorted by relevance. They can save funds from the list to favorites in order to analyze and compare them or start contacting them immediately.
How do users contact funds?
The database and scoring system is not the only benefit of Unicorn Nest. Once users have created their list, they can manage the investor pipeline through the built-in IRM. The company started implementing IRM with one of the most important parts, a cold wrapping system called Unicorn Nest Connect.
The Unicorn Nest ecosystem consists of the sequential operation of the following elements: “Flock of web spiders” (I), which collect data for the selected data set (II). User interaction with the database due to the developed matching rules (III). Attracting relevant investors (IV) through built-in IRM. Getting feedback from them, which is also aggregated into a data set (V).
Project status at the moment
SaaS v1.0 launched in the first quarter of 2021. Hundreds of paying customers
Customizable fund search (unique valuation, AI) and detailed fund profile.
SaaS v2.0 launched in the third quarter of 2021. Current Status - Closed Alpha
Fundraising management and communication (e-mail).
The media portal contains almost 6,000 unique articles: investor interviews, research, automatically generated news. 10,000 monthly active users (+15% mom).
Over 10,000 downloads of the Unicorn Nest Fund dataset (public dataset of 26,000 funds). 2 successful Product Hunt campaigns (top 3 products of the day with over 1200 votes each).
Existing dataset: 49k funds, 270k deals, 92k startups.
The company is located in the heart of European Fundtech - in Luxembourg. Unicorn Nest s.a.r.l. has been accredited by the Ministry of Economy of Luxembourg as a research and development company. The company is a member of the LHoFT community.
KPI for 2022:
MRR - 150 thousand euros
MoM revenue growth - 20%
Business model and monetization
The main functionality will be available on a paid and free subscription model:
|
Monthly plan |
Value |
|
"LOOK OUT", free of charge |
Database and media portal. Saves 80% time on market data collection |
|
"FIND", 20 euros |
"LOOK OUT" + Complete information about the funds. Saves 50% time collecting public information and getting unique data. |
|
"CONTACT", 100 euros |
DISCOVER + Fundraising Management and Communications |
Unicorn Nest also launches the following service - outsourcing of the technical part of fundraising processes and support of the Due diligence process.
The service is implemented by a team with partial or full involvement:
- project manager;
- analyst;
- technical expert.
- includes access to Unicorn Nest experts
- For pilot projects, companies will be involved that meet the requirements:
- Incorporated in Delaware, USA
- Core team is physically located in the USA legally
- The company is seeking funding ranging from $5M to $15M seed round or Round Series A
- Has an existing Revenue, MRR, Gross Margin 1 ranging from $100,000 to $200,000 per month and substantial (two digits) monthly growth. Have the first version of the following documents:
5.1. pitch deck
5.2. Executive Summary
5.3. P&L
5.4. CF
5.5. UoF
5.6. GTMS
Team
COO – Viktor Zakharchenko
CIO – Oleksandr Udodenko
Product Manager Anna Shcherbak
CLO&CAO – Andrii Khantil
Senior Advisor in AI – Oleksiy Molchanovskiy
Content Advisor – Serhii Mitiaiev
SEO Advisor – Andrey Terentiev
Other team members: 40 people (product managers, analysts, developers, content managers, finance)
Offer for the investor
At the moment, Unicorn Nest is raising a $400,000 Bridge round with a $100,000 minimum check under the following conditions:
US$400,000/USDT Convertible Debt/SAFE Agreement
The company is looking for an investor angel who is ready to pass identification (identity card, tax return, bank recommendation)
additional terms of engagement to be announced upon request.
Bridge round is attracted as part of the seed round for 3 million euros. Investments of the round will be distributed in the following proportion:
R&D - 1.25 million euros
Marketing - 1.25 million euros
Operations - 200 thousand euros
Launching an office in Luxembourg - 100 thousand euros
Legal, GDPR — 200 thousand euros
