Deal Abstract

Invest in Asarasi
Republic is a startup investing platform where you can invest as little as $10 in impactful startups

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.

Want to read the whole post?

You don't have access to this post on Startup Investing for All by Muhan Zhang at the moment, but if you upgrade your account you'll be able to see the whole thing, including comments, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.