Deal Abstract

Airbnb for baby equipment, helping young parents travel without baby equipment.

Financials (VRB)

Question Notes
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
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: 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

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
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.

How The Founder Of Match.com Lost Her Business. (And Went On To Found TRUSTe) - with Fran Maier - Business Podcast for Startups
This is the story of the woman who launched one of the first online dating sites, back when most people thought the whole concept of online dating was weird. Fran Maier launched Match.com, helped change that perception and built what became one of the most recognized online brands. Then the company…

Updates

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