Deal Abstract

https://www.seedinvest.com/boodskapper/seed?utm_source=muhanzhang.com&utm_medium=organic&utm_campaign=dealmemo

Software-as-a-Service (SaaS) company eliminating inefficiency in government housing vouchers. Raising $1MM at a $6MM valuation. Reminds me of SeatAssignMate in that this is a high valuable technology, proving its chops in a highly regulated market with lots of stakeholders, that could become widely applicable to many other agencies with accompanying growing pains.

Decision

Yes (hypothetically.)

Why Investing/Passing

  1. Great valuation, good growth in revenue from 68k in 2017 to 198k in 2018.
  2. Selling to real clients with a highly defensible moat.
  3. This is investing first, and foremost. But the fact that these founders were willing to take off their schlep blindness to build something meaningful with greater social impact means they won’t always be optimizing for short-term gain, which is conversely a positive sign for their ability to prioritize the right metrics for long term growth.

The 11 Calacanis Characteristics

Passed on 6/11.

CheckPass/Fail
1. Syndicate lead has >5 years investing and >1 unicorn investmentFail
2. A startup that is based in SVFail: (Dallas, TX)
3. Has at least 2 founders Pass
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: if they raise the minimum of 250k, at a burn of 14k/mth, that’s 19 months of time.
8. Proprietary technology?Fail
9. Network effects?
Pass
10. Economies of scale?
Pass
11. Great branding?
Fail: I have no idea what Boodskapper is, name-wise despite reading through all the documentation. **Appended: the founder clarified to me that “BoodsKapper means


Want to read the whole post?


You don't have access to this post on Startup Investing for All by Muhan Zhang at the moment, but if you upgrade your account you'll be able to see the whole thing, including comments, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.