Innovative construction company is building a new Boxabl home. Can they take the product to market?
|1. Fundraising Target?||$3000000|
|2. Fundraised So Far?||$3925405|
|3. Pre-Money Valuation?||$226000000|
|4. Previous Year's Annual Revenue||$90000|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-1162792|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Las Vegas, NV|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||False: 'We are currently launching a 170,000 square foot factory with the capacity to produce thousands of easily shippable homes and millions in revenue.'|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Though revenue growth from 2019 to 2020 super modest|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Needed ~$2mm and already fundraised past that|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||3||Interesting engineering, but not sure how this beast prefab homes|
|2. Timing?||2||Construction costs not going down|
|3. Monopoly?||1||No market share presently as far as I know|
|4. People?||2||Good team but no one has lead a construction startup yet|
|5. Distribution?||2||Sell directly to customers? B2B?|
|6. Durability?||4||Basically as durable as you can get, unless someone gets a more innovative materials sciences patent|
|7. Secret?||2||New housing costs are going to be Boxabl homes instead of prefab/3d printed/any of the traditional construction ways|
What has to go right for the startup to return money on investment:
1. Deliver product at scale; 2. Figure out margins; 3. How is it that Boxable homes don't need to plug into utiliites?
What the Risks Are
1. Construction innovation super challenging; 2. Become full-stack provider of customer service in addition to being a manufacturer not easy; 3. Going to market and making sure margins stay competitive while risk of innovation doesn't incur additional costs
Bonus Muhan's Notes
Need to figure out more about the innovation, seems a little too good to be true
This is where I’ll post updates about the company. This way all my notes from offering to post-offering updates will be on one page.
Review these deal memos every time the startup raises a new round
Test if original thesis still applies
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