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|

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: 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

Source

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

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 mail@muhanzhang.com and let me know.