Amass Deal Memo (Closing Date: 2021-09-01)

Muhan Zhang -

Deal Abstract

AMASS
Portfolio of premium, high-growth botanic beverages and self care products
SeedInvest

Botanics focused booze and wellness company that sextupled revenue in the last year. Is the future botanics focused products?

Financials (VRB)

Question Notes
1. Fundraising Target? $10000000
2. Fundraised So Far? $2682208
3. Pre-Money Valuation? $75000000
4. Previous Year's Annual Revenue $3469715
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-3344912
Source

The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)

Criteria Yes/No
1. A startup that is based in SV? False: Los Angeles, CA
2. Has at least 2 founders? True: Two
3. Has product in the market? True: Revenue generating
4. 6 months of continuous user growth or 6 months of revenue? True: Sextupled revenue in a year, very impressive
5. Notable investors? False: No one I recognize
6. Post-funding, will have 18 months of runway? True: If they raise the round

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
1. Engineering? 3 Botanics focused alcohol and wellness brand
2. Timing? 3 Good time for health forward/innovative wellness products
3. Monopoly? 4 Great revenue and market share in high end locations
4. People? 4 Team seems strong, good performance
5. Distribution? 4 Has found its way into solid establishments
6. Durability? 3 Not seeing anyone else make a botanics forward booze company, that said, what is the value prop of a botanics forward booze company?
7. Secret? 3 Botanic focused alcohol and lifestyle company can establish enough health forward innovation for consumers that this becomes a billion dollar company.

What has to go right for the startup to return money on investment:

1. Balance B2B and B2C growth correctly; 2. Clarify if this is a booze or wellness company; 3. Articulate the advantages of botanics more clearly

What the Risks Are

1. Ambiguous value prop in terms of booze; 2. High end booze needs to go cheaper to be mass market; 3. Multi product/focus business

Bonus Muhan's Notes

Super cool, I'll be looking for Amass in my Whole Foods!

Updates

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Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.