Episode Summary
Executive Summary: In this special episode of This Week in Startups, Jason Calacanis and Kelly Schricker host four seed-stage startups pitching for a $25,000 friends and family check. The startups are GolfGolf (AI golf coaching), Cicada (live music monetization), DotFlow (AI prospect research), and Clinic Assist (AI medical documentation). Jason provides real-time pitch feedback, emphasizing the importance of clear storytelling, product velocity, and builder founders. He ultimately decides to invest $25k in all four companies, highlighting their potential despite varying market challenges.
Main Topics: Founder University Program Overview (Priority: 4/5): Kelly Schricker explains the 12-week online course for early-stage founders, covering curriculum, breakout rooms, and small wins. The program focuses on accountability, community, and practical modules like pricing and charging early. Importance of Product Velocity and Builder Founders (Priority: 5/5): Jason emphasizes that startups with rapid iteration and technical co-founders (writing code) are preferred. Product velocity allows testing and learning quickly, which is critical for early-stage success. Pitch Analysis and Feedback for Each Startup (Priority: 5/5): Jason critiques each pitch, offering specific advice on storytelling, definitive answers, and targeting ideal customer profiles. He praises GolfGolf and Cicada for their unique angles, while noting DotFlow's poor pitch but strong business potential. Market Challenges in Healthcare, Education, and Music (Priority: 3/5): Jason identifies healthcare, education, and music as 'challenge verticals' due to slow adoption, long sales cycles, and regulatory hurdles. He notes that startups can succeed by going direct to customers or finding underserved niches. Investment Criteria and Decision-Making (Priority: 4/5): Jason and Kelly discuss key factors: builder founders, early traction, product velocity, and market size. Jason decides to invest $25k in all four companies, citing their potential and the value of supporting early-stage teams.
Key Arguments: Early-stage startups should charge early and often to learn from customers and avoid wasting time. Product velocity is critical for testing and iterating; investors want to see rapid improvement. Builder founders (those actively writing code) are preferred over non-technical founders. AI coaching and monetization tools (like GolfGolf and Cicada) have strong potential due to low cost and accessibility. Sales tools that improve efficiency (like DotFlow) have clear ROI and are easy to sell to sales teams. Healthcare and music are challenging verticals, but startups can succeed by focusing on underserved niches (e.g., independent clinics, live performers).
Data Points: GolfGolf free users: 1000 - GolfGolf had over 1000 users for the free version. GolfGolf paid customers: 28 - 28 paid customers for the full report, resulting in $950 in sales. Cicada customers: 32 - Cicada had 32 customers at the time of pitching. Cicada QR code scans: 600 - QR codes scanned over 600 times in 11 countries. Cicada monthly recurring revenue: $500 - Cicada's MRR was just over $500 at the time of pitching. DotFlow paying customers: 2 - DotFlow had two paying customers who bought credits. DotFlow businesses on board: 15 - 15 businesses were on board with DotFlow. Clinic Assist early adopters: 35 - Clinic Assist had more than 35 early adopters. Clinic Assist pricing per practitioner: $120/month - Clinic Assist charges $120 per month per practitioner. Clinic Assist API per note capture: $0.18 - Clinic Assist offers an API pay-per-use offering of 18 cents per note capture.
Pivotal Quotes: "Always answer the question with a definitive number. This is my personal shows. I'm a classical musician, and it's usually less than that. It's more like eight to 10. That's a better answer." — Jason Calacanis: Jason advises a founder on how to sound credible by giving a specific number instead of saying 'it depends.' "The pitch is terrible. We've got to work with you on your pitch." — Jason Calacanis: Jason critiques DotFlow's pitch for being confusing and not clearly targeting the ideal customer. "I got to give the 25K to somebody. And, but, you know, I've got the ability to do all four. So let's just give 25K to all four." — Jason Calacanis: Jason decides to invest $25,000 in all four startups, showing his willingness to support multiple promising teams.
Implications: This episode underscores the importance of clear pitching, product-market fit, and founder quality in early-stage investing. AI is transforming coaching, sales, and healthcare, creating opportunities for startups that focus on underserved niches. Investors value traction, technical teams, and rapid iteration. The decision to fund all four companies highlights the potential of diverse ideas and the value of supporting early-stage founders.
From the Transcript
Well, obviously, I know it depends. I'm asking you, you're the expert. Always answer the question with a definitive number. This is my personal shows. I'm a classical musician, and it's usually less than that. It's more like eight to 10. That's a better answer. So, when you're talking to investors, always try to give them, it depends is the worst answer in the world. You know what happens when you say it depends? Your credibility goes down. I know it depends. I could always say it depends. So, when you're talking to investors, that's a chance for you to seem smart. So, does that make sense? Kelly should have taught me this in the training. So this is Kelly's fault. But let's try one more time and think about, I'm going to ask you the question again. And think about a way to sound super credible by giving me, you know, three data points here. But do it in 10 seconds or 15 seconds, three, two. So tell me, how many songs are there in the average show, 10 to 20? My shows usually have eight to 10. Pop musicians tend to play more like 20.
We pivoted in October during the cohort, and we already have two paying customers who bought credits. We have two people signed up for our LOI, which is our next release next week. We have 15 businesses on board. Why take a bet on us? I'm a senior in college right now, while my co-founder, who's in this call, is a CS guy. Yep. So, the product is very interesting. It's super compelling. The pitch is terrible. We've got to work with you on your pitch. So, I always tell you to straight. And the reason the pitch is terrible is because you are telling us this is for. E-commerce, but then you're using an example for founders and investors, and the story and the examples don't make a lot of sense. So I think the audience is going to be confused by what you're doing. But let me try to pitch your company here in real time. Hey, I'm Jason from DotFlow. I'm the co-founder of the company. We take the job of prospecting for customers and we automate it using AI. Let me show you how it works. Meet Kelly. Kelly works for a SaaS company and they're looking for
My number one is definitely golf for this group. The reason here, I know we didn't go through it much today, but the bottom-up TAR makes a lot of sense. You know, with 0.1% of the market, they don't have to have a ton of the folks that are out there golfing. It doesn't have to be the best golfers in the world. It can be really anybody that's in that space. And so I really love the bottom-up TA here, and that's what sold me on golf golf. Awesome. Okay. So just to make this easier. I got to give the 25K to somebody. And, but, you know, I've got the ability to do all four. So let's just give 25K to all four and we'll see what happens. So, congratulations to everybody. You each got a 25K check. I'm now your friends and family check. And let's see if we can get to the next level. If you are a seed investor, you're running accelerator. If you like any of these companies, just contact them. And, you know, early stage investing is a team sport. So attending my friends who run seed funds or accelerators, you know, go ahead and meet them, ask Kelly for an introduction. At launch.co. And I'm Jason at launch.co. You can email us anytime. And we'll see you all next time on This Week in Startups.
About This Week in Startups
Jason Calacanis covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators.