Compound Finance “Execution” Review and Rating
Today I conclude Compound Finance review by ranking it on “Execution” (Solution- Validity- Equity- Team) sub-rating.
According to Crunchbase “Compound Finance” was launched by “Compound Labs” founded in August 2017 and headquartered in San Francisco, California. Its founders are: Geoffrey Hayes — an entrepreneur with Science in Engineering degree from University of Pennsylvania, previously co-founded Safe Shepherd (a web service to remove records that violate its users privacy, founded in 2011 and then sold to Boatbound); and Robert Leshner also University of Pennsylvania graduate (Art and Science) and co-founder of Safe Shepherds. (“Team” is “b”)
They received Series A financing in the amount of $33.2M (Sep 2019) in a round led by Andreessen Horowitz’s a16z crypto fund. They issued their white paper in Fen 2020. Their current users base exceeds 20 th.
Overall, neither their business model nor their present legal status are clear from the information readily available from open sources. Same is to be said about their present state of finance. However, based solely on Crunchbase report I can assume that they had been properly vetted by their investors on at least legal side. Still, I have not seen it first hand, which leaves some space for unsubstantiated doubts (“Validity” is “b”).
I do not know their burning rate or even the number of employees. However, being freshly from the round A and having, presumably, about 50 people max gives them a run of at least 3–4 years before B/E must be reached. Hence, “Equity” is “b”.
As to its business model I’m not sure that if they charge 0.01 % on top of every cToken transaction this platform is able to cove its costs (5–7 mio a year, presumable) without substantially expanding their existing users base (from ten of thousands to hundreds th. iMHO). Therefore, “Solution” is “c+” (unless, until I have some certainty on this issue).
Result for “Execution” (Solution- Validity- Equity- Team): c+/b/b/b
For detailed blockchain industry reports and projects analytics visit our platform: https://svetrating.com
For more information and community talks on this subject join our Whitepapers analysis Telegram group: https://t.me/joinchat/I5eQ-A6FSC2vXg_PNgFwJw
or my Twitter: https://twitter.com/SvjatoslavSedof
… also if you’re residing somewhere in the South Bay, CA, please, join our meetup group: https://www.meetup.com/South-Bay-Decentralized-Finance/
