I'm writing this email to keep you posted on some recent developments in our investments and inform you about the new startup I'm looking to invest in once I have completed due diligence.
Starting from our existing investments—in our last update at the beginning of July, we saw that Linen finally removed the waitlist and released their app on IOS, which supports over 1000 Ethereum-based assets.
One of the next steps of their roadmap last month was to release in-app swaps to allow users to exchange a crypto asset directly for another without selling it for U.S. dollars.
One month later, I'm happy to see that Vitaly, Linen's founder, keeps executing as planned. Last week they announced the release of in-app swaps, which now support more than 100 crypto assets.
Therefore, I can't wait to see them executing their next steps, which include:
- Purchase of crypto assets with cards. Many places in the world do not have easy access to crypto assets. This will give international users a way to onramp to the crypto economy.
- Integrate Ethereum scalability solutions.
- Release Android app.
- Integrate wallet connectivity standard that allows users to link their Linen Wallet to almost any DeFi or Web3 application. All Linen users will become part of the open financial system and are not locked into any particular app.
- Once Layer 2 is implemented, the company will start with marketing campaigns.
(Here is the Linen investment report, in case you missed it.)
Moving on to Place Technology, I informed you in the last update that I confirmed my investment in the company after reviewing their balance sheet through Form C.
We also saw that over the three months prior to June 2021, the company's revenues averaged $106,431/month.
I was happy to read that because, when I talked with the founder two months ago, he informed me that their ARR projection for the end of this year was $1M. So if those revenues were recurring, they would have hit their target right after one month.
I reached out to the founder to ask for more information about that, and he informed me that recurring revenue for the same period is $75,933. So that means that their ARR as of June 2021 was $911k. Not bad; they have almost hit their 2021 $1M ARR target in H1!
In a most recent update (on August 7), the founder also said their current pipeline is $1.04M, up 325% since January 2021.
Furthermore, one of the main focuses for Brandon, Place's founder, was to increase their inbound pipeline (companies coming to them as the first point of contact) over outbound sales. So I'm glad to read in their recent update that their inbound pipeline is up 653%.
(Here is the Place investment report, in case you missed it.)
Regarding Customer IO, the campaign went sold out on Republic and closed earlier than expected, raising $5M from 2,458 investors. I can't wait to see how this will play out in the long term!
Talking of Arlene, the company was successfully funded and closed the campaign on August 6, 2021. Nevertheless, they are doing an additional bridge round with angel investors before pursuing a larger one through VCs.
They are seeking $500k (of which $100k has already been committed) at an $8M valuation and a minimum investment of $25k. So if you missed the chance to invest through Republic and still want to invest, feel free to reach out to me, and I'll be happy to connect you with the company.
There is also some news from Wefunder. We invested in the company in March when the new regulation for equity crowdfunding rolled out. At the time, I was really confident that the new law would have significantly accelerated Reg CF investment volume.
One month later, this was confirmed when they published their Q1 2021 investor update and shared their quarterly investment volume of $68M, up 641% over the same period the previous year ($10.6M.)
Five months later, I'm happy to inform you that the trend in Reg CF is continuing apace. They have not yet published their Q2 investment report on Wefunder, but their VP of fundraising shared an update on LinkedIn in which the Investment Volume for H1 2021 is $120M.
My main and only goal at Angel Notes is to provide you with the most promising startup investment opportunities on equity crowdfunding platforms, so I couldn't be more proud to see how our investments are evolving in such a short period of time.
So now let's talk about new investments.
Although Italy has recently registered the hottest temperature ever recorded in Europe (48.8C or 119.8F), I've been hard at work to find our next investment, and I started by reviewing all the startups you suggested to me.
The one that most caught my attention is Elemeno. (I would like to thank Krishna Edunuri, an Angel Notes member, for informing me about this deal. Thanks, Krishna!)
Fundraising on Startengine, Elemeno is a simple yet super effective and much-needed idea—a mobile-first platform in which frontline nurses and doctors can find the hands-on training they need to perform their day-to-day jobs.
To make it simple, if you are a nurse and don't remember how to perform a certain task, you can pick your phone and search for the related guidelines and how-to videos on Elemeno.
The company surpassed $1M ARR in 2020 and is projected to reach $2M ARR in 2021. But what's more interesting is that only one client cancel the subscription since the company's inception in 2016, while all the others are renewing and expanding.
That's for a good reason.
The company did multiple tests to evaluate how Elemeno helped organizations cut medical errors and costs. They divided hospitals departments into two parts, one of which used Elemeno, and the results are amazing.
For example, in a study published in the 2018 American Journal of Medical Quality, it is reported that UCSF Medical Center cut Central IV infections by 48% with Elemeno, saving $1.1M.
There are no doubts—a product that solves a real and significant problem while making customers save millions is a direct path to a company's success.
That's why I started my due diligence on Elemeno, and I hope that further research will confirm my initial view of the company. Of course, I'll keep you posted with an investment report if that's the case.
Make sure to take a look at the company's campaign on Startengine and let me know your thoughts. You know how much I appreciate reading your emails and suggestions.
As always, I'm getting back to work for you!
Talking to you soon,