Deal Abstract
Maple syrup cleaned of maple sugars ends up being delicious water. This company wants to take this 'maple cleaned water' and build the next Coca-Cola out of it.
Financials (VRB)
|Question|Notes|
|---|---|---|
|1. Fundraising Target? |$472050|
|2. Fundraised So Far?|$303773|
|3. Pre-Money Valuation?|$10000000|
|4. Previous Year's Annual Revenue |$185392|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-180184|
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: Katonah, NY |
| 2. Has at least 2 founders? | False: Two |
| 3. Has product in the market? | True: Has revenue |
| 4. 6 months of continuous user growth or 6 months of revenue? | True: Grew from $148k to $185k from 2018 to 2019 |
| 5. Notable investors? | False: No one I recognize |
| 6. Post-funding, will have 18 months of runway? | True: At around $270k will have 18 months runway, already there |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 1 | No major engineering innovation, just harvesting previous waste to make water |
| 2. Timing? | 2 | No discernible reason why now is the time to sell maple syrup cleaned water |
| 3. Monopoly? | 1 | No product in the market |
| 4. People? | 1 | No previous work experience in beverage sales |
| 5. Distribution? | 1 | No established distribution channels |
| 6. Durability? | 2 | If maple syrup cleaned water becomes a booming market, sure, but otherwise water is water |
| 7. Secret? | 1 | Maple syrup derived water is a billion dollar company that hasn't been 'tapped' yet |
What has to go right for the startup to return money on investment:
1. Maple water tastes and feels that much better; 2. Compete against Coca Cola's hegemony in beverages; 3. Diversify from just water to all water based beverages
What the Risks Are
1. Beverages aren't a tech business, but a distribution business; 2. Claiming the maple water isn't commercially compelling; 3. R&D costs of innovating new products consistently aren't easy
Bonus Muhan's Notes
Very cool company. Concern is this is a solution looking for a problem.
Updates
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