๐Ÿ•ต๏ธ Due Diligence, Lofi Music, and Exploding Subreddits ๐Ÿ“ˆ
6 min read

๐Ÿ•ต๏ธ Due Diligence, Lofi Music, and Exploding Subreddits ๐Ÿ“ˆ

Due Diligence

The Signal:

Background:

  • Due diligence is the process of gathering information that will help you make a decision about a product, business or service.
  • For example, when deciding to purchase a house or business, the buyer would ask the seller to provide information about its history and condition.
  • Shaan Puri recently revealed a dirty little secret of the VC world in the My First Million podcast: almost no one is doing proper due diligence.
  • There are of course big scandals like the one with Ozy Media who raised millions even though most of their claims were made up.
  • But scams happen every single day on a much smaller scale, e.g., when a guy like you or me buys a business or website on one of the many marketplaces.
  • The problem will only get worse as acquisition entrepreneurship gets more popular.
  • The acquisition entrepreneurship trend is fueled but also nicely illustrated by the rise of platforms like MicroAcquire.

Opportunities:

  • Build a SaaS tool to automate the due diligence process for a specific asset class.
  • For example, there are many tricks to artificially inflate web traffic metrics, many of which can be detected by software (e.g. unnatural pattern detection, source code scanning etc.).
  • Another example is follower numbers on social media platform where currently tools like Social Blade are used to detect unnatural patterns, i.e. when someone buys followers.
  • But some tools go far beyond that, e.g. Social Auditor which scans all Instagram follower profiles of a given user.
  • Businesses intrerested in buying sponsored posts from iunfluencers are more than happy to pay for a tool like that.
  • Every time a new social media platform takes off, there's an opportunity to build a due diligence tool like that.
  • Another great opportunity is to offer due diligence as a productized service.
  • My friend Stefan used to offer due diligence for websites sold on Flippa. (Here's an example of what this looked like.)
  • Similar productized services can be offered for any asset type and platform (e.g. micro SaaS offered on MicroAcquire or domain names or social media profiles).
  • A third option is to start a content business around due diligence.
  • AngelNotes is doing this for startups that are trying to raise money on crowdfunding platforms.
  • Alternative Assets Club is, in a sense, doing the same for fractionalized assets.

  • In any case, it's important to keep in mind that there's a wide range of opportunities ranging from cheap products/services that cover the essentials to premium services (e.g. a highly customized service targeting VC firms).

Lofi Music

h/t Jonathan Muehlstein who contributed this trend and most of the opportunities listed below.

The Signal:

Background:

  • Lofi music is a genre that is typically characterised by low fidelity, or low quality, in terms of the sound, typically lo-fi in the sound bit depth.
  • Listen here.
  • Lofi music typically contains deliberate imperfections. Examples for such elements include misplayed notes, environmental interference, tape hiss etc.
  • Target listener audiences include people who want to relax, students & programmers / makers.
  • Target creator audience consists mostly of Youtube music producers.
  • Top related Reddit groups are โ€œr/LofiHipHopโ€ (473k members), โ€œr/lofiโ€ (37.3k members) & โ€œr/LofiGirlโ€ (23k members).
  • Chillhop.com is a major platform and music label with 290.63k total visits in the last 6 months according to SimilarWeb.
  • Chillbeats.com is another smaller music label with 52.42k total visits in the last 6 months.
  • Fiverr.com lists 300+ services for โ€œlofi musicโ€. Gigs offered mostly revolve around music production, Youtube channel creation & population as well as creating music video animations, illustrations and GIFs.

Opportunities:

  • Create an app for popular IOT devices (Alexa, Google Home Assistant etc.) specifically for Lofi lovers.
  • This Relaxing Sleep Sounds App for Amazon Alexa claims to generate $50k in yearly revenue. (Needs some proper due diligence imho.)
  • Create info products around Lofi music creation.
  • Interest in โ€œhow to make Lofi musicโ€ is growing rapidly and is currently at 880/month searches in the US.
  • There's currently just one course that teaches how to make Lofi music on Udemy and it has quite bad ratings.
  • Leverage AI to create lofi music & art.
  • As Lofi music tends to be highly repetitive and low tempo, it is a good fit for current AI tools available for content generation.
  • Here's a tutorial.
  • Publish your music on Youtube and build a chillhop.com competitor.
  • Even related art can be generated using AI and then be published on Instagram as an additional traffic source.
  • Once you built an audience, monetize with ads, a merch shop and sponsorships.
  • Since students are a large target audience, consider selling student-related items with Lofi girl / general Lofi music art style branding.

Exploding Subreddits

I couldn't pick a clear winner so here's a bunch of rapidly growing communities that grabbed my attention.

The Signal:

Background:

  • I'm not quite sure what's going on on Reddit right now but everything related to mushrooms seems to be exploding right now.
  • MushroomID is "a place to get genus/species identification from pictures of fruiting bodies. This is a difficult task even for the most experienced forager and we encourage you to supply all the information you can."
  • A similarly fast-growing community is /r/shroomID.

Opportunities:

  • Offer mushroom identification as a service.
  • An app that instantly connects users with a mushroom expert at the click of the button certainly would be popular among mushroom enthusiasts.
  • There are quite a few apps that offer automated mushroom identifcation but for all of them the error rate seems quite high which, obviously, can be problematic when it comes to mushrooms. (This one has 11,000 ratings and is generating around $5k per month.)
  • Offer a course that explains the ins and outs of mushroom identification.
  • Partner with an expert or learn it yourself by attending a local workshop.
  • There's currently not a single Udemy course with mushroom identification in its title.

The Signal:

Background:

  • "Welcome to AirReps, the subreddit where we discuss and review AirPods clones, replicas, copies, knockoffs etc."

Opportunities:

  • Create a Chrome extension that shows users cheap replica alternatives when shopping on sites like Amazon. ย 

Further Interesting Signals

  • "Wherever you find manga, you also find manga coloring. r/mangacoloring welcomes colorists of every manga and skill level. Come one, come all! Give critiques or tutorials, or just show off your work."
  • "Outsider art is art by self-taught or naรฏve art makers. Here we define outsider art as art created outside the boundaries of typical culture. This is up for interpretation. This subreddit is for unique art of all kinds (including music, theatre, literature, etc)."

I hope you enjoyed this report. If you have a minute, please respond and let me know what you think.

Thanks,

Jakob

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