Deal Abstract

https://www.seedinvest.com/lobster/seed

Dock to doorstep e-commerce play for Get Maine Lobster (Black Point Seafood.) This is a retroactive deal memo. Sought to raise $1MM, minimum $450k, at a $9MM valuation. Another example of a straightforward e-commerce business model raising crowdfunding money in an unorthodox way.

Decision

No.

Why Investing/Passing

  1. E-commerce is the right way to do this business, but raising money in equity form to spend more on marketing seems unnecessary.
  2. The business is built to scale, but I don’t see the consumption of seafood as a suddenly rapid growing business.
  3. It took 9 years to grow to an estimated valuation of $9MM.

The 11 Calacanis Characteristics

Passed on 4/11.

CheckPass/Fail
1. Syndicate lead has >5 years investing and >1 unicorn investmentFail
2. A startup that is based in SVFail: (Portland, ME)
3. Has at least 2 founders Fail
4. Has product in the market Pass
5. 6 months of continuous user growth or 6 months of revenue.Pass
6. Notable investors?Fail
7. Post-funding, will have 18 months of runway Pass: this business is raising money to expand, not because it’s not profitable/sustainable.
8. Proprietary technology?Fail
9. Network effects?
Fail
10. Economies of scale?
Fail
11. Great branding?
Pass: fun brand

The 7 Thiel Questions

  1. The Engineering question:
    • Bad: this company is not 10x-ing anything. That said, they never purported to be.
  2. The Timing question
    • Bad: though it’s a good time to be starting online e-commerce business, there’s no reason to ask why this business is positioned for exponential growth at this moment.
  3. The monopoly question
    • Bad: nope. That said, although there are no reasons why another lobster


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