Airbnb for baby equipment, helping young parents travel without baby equipment.
|1. Fundraising Target?||$5000000|
|2. Fundraised So Far?||$1700000|
|3. Pre-Money Valuation?||$18000000|
|4. Previous Year's Annual Revenue||$490991|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-1475057|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Santa Fe, NM|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||False: Revenue declined|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Needs $2.1m in revenue to having 1.5 years of runway|
|1. Engineering?||3||No Airbnb for baby equipment yet|
|2. Timing?||2||Could see the argument with the sharing economy, but I'm curious if demand for this would be hockey shaped|
|3. Monopoly?||3||Has done really well with great reviews in the market|
|4. People?||3||Wow, the CEO is one of the former co-founders of Match.com, but that business had a poor exit|
|5. Distribution?||3||Good traction|
|6. Durability?||3||Network based business|
|7. Secret?||2||Demand for baby stroller services and equipments is set to enjoy hockey stick growth due to young parents who don't want to carry stuff|
What has to go right for the startup to return money on investment:
1. Recover from the 2020 dip; 2. Build a platform that becomes two sided marketplace for other baby needs; 3. Can Babyquip eventually move into the subscription baby needs business model?
What the Risks Are
1. Sort of like Daycation, a service the exists as an addendum to other main hospitality businesses; 2. Growth speed is limited as it's a hardware network; 3. LTV for customers is limited by how quickly the child grows
Bonus Muhan's Notes
Really interesting business, right on the fence about this one.
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Review these deal memos every time the startup raises a new round
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