|1. Ssyndicate lead has >5 years investing and >1 unicorn investment||Fail: Uncertain, this question may be defunct for all SeedInvest deals|
|2. A startup that is based in SV||Fail: Based in Rockville, MD (e.g. NIH, Bethesda, government $$$ land)|
|3. Has at least 2 founders||Fail: No. One founder. But founder doesn’t seem to be going anywhere.|
|4. Has product in the market||Pass: Yes, $313k in revenue 2017|
|5. 6 months of continuous user growth or revenue.||Pass: Has years of revenue|
|6. Notable investors?||Pass: Ping’an Ventures 中国平安|
|7. Post-funding, will have 18 months of runway||Pass: Yes, $107k in burn a month from 2017, $3.4MM raised, so 34 months of funding at current burn (though burn will increase for growth.)|
- It’s hard not to resist the hard, unequivocal impact that early stage detection of cancer would have for the world. In addition, the science of using biomarkers instead of genetic code makes sense. Looking at Ian York’s answer here the biggest cause of cancer was smoking, which would highlights that external factors have more impact on getting cancer than genetic predisposition.
- Having Ping’an money is an enormous deal in a “Chinese” partner. The Chinese play—partnership with Chinese investors, access to Taiwanese patients data for building the AI/ML modelset for detecting cancer—makes sense though is high risk, high return. Not only is East Asia a better market for getting raw datasets, the regulations of entering the market, leveraging an American brand, and willingness to pay may be different.
- Has more revenue than four competitors in pre-revenue, public cancer detection companies. Immunovia is $18k ($321MM cap) and OncImmune is $250k ($96MM cap.)
What the Risks Are (Thiel)
- Valuation risk
- Pre-money valuation is $26MM, roughly $3MM raised. Even if grows to the size of largest competitor to penultimate customer, that’s only 11x or 3x return.That
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