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.
|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)
|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|
|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.
This is where I’ll post updates about the company. This way all my notes from offering to post-offering updates will be on one page.
Review these deal memos every time the startup raises a new round
Test if original thesis still applies
Notice trends in how you think
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at email@example.com and let me know.