Is this thread dead?
S10E12 had a pitch that was very interesting imo, Monti Kids.
Start up offering a ridiculously expensive subscription model for babies (0-3 years) educational toys.
What I found very interesting:
*Team of 7 and the way it was presented it seemed like they were burning 95k a month on salaries, for a start up with half a million in revenues to date. Seems ridiculous, but the way it was presented I do not think it is far from the truth.
*She almost closes a horrible deal with Robert for $200k for 10% and eventually closes an even worse deal with Kevin for $200k for 2,5% and Kevin 4X-ing his money via royalties.
Why was she this interested in getting a deal for $200k at terrible terms, when the money does not even fund 10 weeks of operations? Why doesn't she convince her staff to take stock-based compensation instead of giving away all the equity and cash flow of the company?
Was she really after expertise? It still seems like a really expensive way to get expertise.
Does anyone know what I'm missing?