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.
|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)
|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)
|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.
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 firstname.lastname@example.org and let me know.