1Mby1M Virtual Accelerator Investor Forum: With Raoul Maier of Eudemian Ventures (Part 3)

Sramana Mitra: Please go ahead with the next one. 

Raoul Maier: The next one is called Underground Cellar. They are revolutionizing the way brands sell online which is a fascinating concept. They think that discounting should be a thing of the past and that it should be switched to upgrades instead. They think that there are so many items discounted these days.

With the price transparency on the internet today, it’s forcing many businesses to race to the bottom and it cannot be sustained. They introduced a “gamified” solution for replacing discounts with random upgrades.

They started in the wine business. For example, for two or three wine bottles, you would normally shop for a great price but instead, they would give it to you at list price but then you would get one random upgrade and it might be a $5,000 bottle.

That makes it really exciting for many people. They think that they can transfer that to many different markets like ticketing, for example. We think that this is an exciting new concept.

Another company that we invested in is a company called Resolve. They are spin out of Affirm, the B2C payment transactions company. They provide instant credit between 30 to 90 days to SMB buyers. We think that they can revolutionize the way instant credit is provided, because it is a very laborious process. It’s just not a very smooth process today. They are solving that problem.

Cereal Box is another investment we did. They are building Netflix for reading and listening. They are transforming award-winning content and bringing it to a format where you can read and listen to it seamlessly and it allows you to switch between the two different modes. This is an exciting concept.

The fifth company we invested in is called AdQuick. They are revolutionizing the outdoor advertising space. They are building the leading marketplace for anyone who wants to buy outdoor advertising. They made it an easy process similar to buying online ads with Facebook or with Google.

You have millions of advertising owners today who own billboards and other outdoor advertising opportunities. These are very hard to access. They are building the leading marketplace for that space which is an extremely exciting business post-pandemic or even within the pandemic, and it’s going well.

The last company that we invested in is called Tinycare. They are building the 21st century brand for child care. I love that business, particularly because I am a father of two little kids. We think that the child care experience in the US is broken from a demand and supply perspective.

The demand is obviously there. You can’t have enough child care capacity with the quality you like. From the supply perspective, it’s hard because many of these child care providers have a hard time finding affordable rent in downtown locations. Tinycare is solving both of those problems and we love that business as well. Those are the businesses that we invested in.

This is the common thread across all of them. They were what we consider either full product-market fit or very close to it. They had a valuation range between $15 to $25 million pre-valuations. You could see a breakout growth pattern. Those are the businesses that you always like to catch and focus on. 

This segment is part 3 in the series : 1Mby1M Virtual Accelerator Investor Forum: With Raoul Maier of Eudemian Ventures
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