Camdog Deal Memo (Closing Date: 2022-01-31)

Muhan Zhang -

Deal Abstract

Invest in Camdog Inc: We help customers minimize their losses, prevent intrusions. We offer AI-based video surveillance. | Wefunder
We help customers minimize their losses, prevent intrusions. We offer AI-based video surveillance.
Camdog Inc on Wefunder

SaaS company is selling AI to recognize threats in CCTV security systems. Strong revenue but what is the greater vision for becoming a big security company?

Financials (VRB)

Question Notes
1. Fundraising Target? $150000
2. Fundraised So Far? $78435
3. Pre-Money Valuation? $4000000
4. Previous Year's Annual Revenue $0
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-6375
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: New York, NY
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? True: MRR in Nov 2021 was $11.7k
5. Notable investors? False: No one I recognize
6. Post-funding, will have 18 months of runway? True: Very low burn
Source

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

Question Score Notes
1. Engineering? 2 Selling SaaS to upscale CCTV systems
2. Timing? 1 Not sure why this is the right timing for this business
3. Monopoly? 3 Impressive revenue growth
4. People? 2 Team seems fine but not sure why they are building this business
5. Distribution? 2 Good revenue, but does this business have an unfair advantage in accessing their customers?
6. Durability? 1 Not sure what's stopping another business from taking a simple computer vision AI and applying it to CCTV
7. Secret? 1 SaaS to upgrade CCTV systems to automatic detection is a billion dollar business

What has to go right for the startup to return money on investment:

1. Identify what is the pattern behind all the customers they're getting; 2. Team up with hardware providers to sell trials and discounts; 3. Get a vision for what this company is trying to become

What the Risks Are

1. What is the vision for this company to become a billion? 2. What is stopping camera companies from getting their own SaaS solutions? 3. Is this is a security company or a security feature?

Bonus Muhan's Notes

Updates

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

So, did I invest?

Click here to find out.

Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.