No Mind Traction for Me

NO, I would not invest in Mindtraction.

Despite the compelling story presented, the apparent ease and comfort of the presenter while sharing the story, or the marketable response to an evident need, this company is not for me. The simplistic view of a mentor in your pocket conflicts with my experience and understanding of what an effective mentor can provide. This product, more of a personal assistant in your pocket, may provide the supports that struggling higher education students need, but will certainly not help them do the hard work necessary to be a successful student.

The CEO appears creditable, knowledgeable and qualified yet no mention is made of a supporting management or technical team.

The Venture Concept appears to target a real problem with an original, simple solution within an American context. The educational implications of anxiety for millions of university and college students is very real but the solution offered is less than compelling. The mentoring concept is more personal assistant in nature. The logic connecting a cell phone app to less anxiety, better thinking, higher grades or fewer dropouts is not convincing.

The Marketability within the US context would be over 20 million potential customers based on self phone ownership, with potential bulk sales to campuses across the country. It is not evident if the company is currently in the market or still in a design phase, leaving the time to realize profits indeterminate. There is no mention of a competitive product or company. There is no indication of potential application to a global marketplace.

The Venture Plan outlines an exit strategy of $1 million in the first 5 years on an investment of $100,000 for product development. There is no compelling vision, financial positioning or deployment plan. The total cost of ownership in getting students to buy into a ‘mentor-in-your-pocket’ is not explained.

Reference: Mind Traction elevator pitch. (2011). YouTube. [Video podcast] Retrieved from https://www.youtube.com/watch?v=4AmhbODxd2k

Posted in: Week 03: Analyst Bootcamp