Deal Abstract
YouTube celebrity house 'flipsters' Lauren and Lincoln are crowdfunding for their next real estate portfolio. They will take a 50% profit of all carry, no management fee.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $500000 |
| 2. Fundraised So Far? | $500000 |
| 3. Pre-Money Valuation? | $0 |
| 4. Previous Year's Annual Revenue | $0 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$0 |
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: Austin, TX |
| 2. Has at least 2 founders? | True: Two |
| 3. Has product in the market? | False: Doesn't appear so |
| 4. 6 months of continuous user growth or 6 months of revenue? | False: No revenue |
| 5. Notable investors? | False: N/A |
| 6. Post-funding, will have 18 months of runway? | True: No burn |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 1 | No innovation |
| 2. Timing? | 4 | Austin is on the rise |
| 3. Monopoly? | 1 | Real estate is not winner take all |
| 4. People? | 4 | Really strong team and media presence |
| 5. Distribution? | 1 | No need for distribution really |
| 6. Durability? | 5 | Houses are houses are houses |
| 7. Secret? | 1 | Austin's real estate market is going to keep growing |
What has to go right for the startup to return money on investment:
1. Austin continues to grow at high pace; 2. Media and unfair access to dealflow continues to be proprietary; 3. Team continues to execute on MBA level professionalism against casual landlords
What the Risks Are
1. Def will not be a billion dollar company
Bonus Muhan's Notes
Super cool. I obviously write more about startup investing, but real estate investing + media is another combination of my fields.
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
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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.