Social impact entrepreneurs are building a marketplace for women wellness ecommerce and education. Big question is are they focusing on the platform, the goods, or the education of the community.
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$89534|
|3. Pre-Money Valuation?|$6000000|
|4. Previous Year's Annual Revenue |$62755|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-141781|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||True: Oakland, CA|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Marketplace|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Revenue grew from $36k to $62k|
|5. Notable investors?||True: Former CEO of Lancome, seems like a big deal|
|6. Post-funding, will have 18 months of runway?||False: At present looks like it's going to miss the goal|
|1. Engineering?||2||Is a curated marketplace focusing on a niche|
|2. Timing?||2||Good time to build a marketplace|
|3. Monopoly?||2||Has 100k users, which is strong organic growth, but what's the revenue look like?|
|4. People?||2||Team has good experience and brand building sensibilities, but no work experience at previous large marketplaces like this (Thrive market as comp?)|
|5. Distribution?||3||Building a marketplace so solving for distribution/got 100k users|
|6. Durability?||3||Marketplace kind of reminds me of The Honest Company, though that company did fall into scandal|
|7. Secret?||3||Womens care products with sketchy ingredients filtered out is an enormous market that has been underserved by other marketplaces due to taboo of empowering women|
What has to go right for the startup to return money on investment:
1. Convert community members to purchases; 2. Master whether is going for the marketplace advantage, goods advantage, or education advantage; 3. Establish recurring revenue, maybe through subscription
What the Risks Are
1. Community members don't convert to purchases; 2. the advantage to marketplaces is sourcing and verification, which may lend supply chain advantage to other marketplaces; 3. Needs more capital to deploy the network benefits of a marketplace that a customer needs e.g. how to compete with Amazon customer service
Bonus Muhan's Notes
Very cool to review this deal, and eager to see how they progress in the coming months.
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Review these deal memos every time the startup raises a new round
Test if original thesis still applies
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