Moviepass Has Some Real Value & Talent For A $16 Million Startup
February 22, 2019
Moviepass parent company Helios and Matheson trades on the OTC for a tiny $16 Million Dollar Market Capitalization. It seems like a crazy low valuation for a company that was the darling of the entertainment industry just a year ago. But with a risky business model, and a few missteps Moviepass flamed out like a company sentenced to an early death. It’s a company no VC or PE firm seems to want to touch.
But the strange thing is, Moviepass just doesn’t seem to want to die. They keep rebooting the thing over and over. And like a bad Windows PC, it runs for a while, locks up, and needs to be rebooted again. It’s been nothing short of a total wipeout for shareholders, with the stock being diluted to oblivion, and dropping to less than a penny for months now. The fat lady has started tuning and you can almost hear the very end.
What is odd about all of this is that there is some real value left in Moviepass. Moviepass has a working product now – it has patents for that product – although it’s not clear they can be defended.
Working Product With Real Revenue
Almost all reasonable reports from customers on the new Moviepass plans are reporting a solid service where movies are regularly available as promised. Quite simply, the product works and it does provide value. It’s not the crazy product of last year. But it is a product that works, it has real customers, and is making real revenue. As an early stage startup investor, I can tell you it’s hard to find any company with a valuation this low with a scalable working product with real revenue. Very hard to find.
Not many startups offer wild card revenue potential. Moviepass’s interest in what was formerly EFO now Moviepass Films offers a very interesting wild card play for a startup valued at a lowly $16 Million dollars!
Read this and think about getting this thrown into a startup investment…..
MoviePass Films, formerlyEmmett/Furla/Oasis Films/EFO Films, previously known asEmmett/Furla FilmsandOasis Ventures Entertainmentseparately, is an American film and television production and financing company founded byRandall Emmettand George Furla in 1998. It is notable for funding and producing the filmsEnd of Watch,2 GunsandLone Survivor. To date, MoviePass Films has produced more than 80 films which have grossed in excess of $1,000,000,000 box office ticket sales worldwide—an average of roughly $13,000,000 per film.
That’s a nice little bonus wild card you get for essentially nothing!
While we all know that Moviepass and HMNY has been led by an ugly two headed monster- HMNY CEO Ted Farnsworth and Moviepass CEO Mitch Lowe, that is narrative that is both coming near and end, and too thin to tell the true story. It won’t be long before Farnsworth will be out of the picture, with a planned spinoff of Moviepass away from HMNY, Farnsworth will be put to rest.
But more important, Moviepass has real talent on their team, they have taken a lot of shots, but have stabilized the ship. Using LinkedIn, I did some analysis of the type of people Moviepass has on staff, and in a word, it’s very impressive for a $16 Million Startup!
In my experience the team has the right type of people, in the right jobs, with strong professional and educational backgrounds.
Take a look at these stats.
First illustration here is the makeup of the roles. (Note- this is not all the people at Moviepass, only those who are on LinkedIn and have Moviepass in their profiles. Which is normally very representative of the total population of any company.)
This next shot shows the education background of the engineering team. I dug in and looked at about half of the profiles on the engineering team. Overall, it is a very impressive team. Top quality schools and professional backgrounds. Excellent for a startup valued at only $16M!!
MIT, Michigan- and many other top schools.
The Marketing and Biz Dev talent is on par with any top startup. Stanford, MIT, Michigan, Columbia, PENN – this is a blue chip roster here.
I want to be really clear here. If you invest in HMNY, you are investing in what is a classic fucked up mess of a startup. No bones about it. The chances are more likely you will lose money than make money. There are more things that can and will go wrong. Things you never thought could happen. That’s called being invested in a startup. Risk vs. Reward is real. This is maybe as good as a scratch ticket.
But at a valuation of $16 Million, you are buying some very interesting possibilities. And I think the value of what is offered here for the money likely beats anything being shopped around on Sand Hill Rd. today!
Do your own research. You probably can’t beat the market. Have fun!