Technologists designed new N95 mask that they are hoping to sell to hospitals.
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$73816|
|3. Pre-Money Valuation?|$6500000|
|4. Previous Year's Annual Revenue |$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$0|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Katonah, NY|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||False: Raising money to Fulfilling initial shipments and launching hospital pilots in Q1 2021|
|4. 6 months of continuous user growth or 6 months of revenue?||False: No product in market|
|5. Notable investors?||False: Bootstrapped|
|6. Post-funding, will have 18 months of runway?||True: But no operations e.g. no burn|
|1. Engineering?||2||Marginally better but not 10x better|
|2. Timing?||2||Definitely more demand now, but I'd argue with vaccines coming this won't be as priority for long term|
|3. Monopoly?||1||No product in market|
|4. People?||3||Good team but no one with medical PPE development and sales before|
|5. Distribution?||1||Selling to B2B and no delivery history yet|
|6. Durability?||1||Not sure how defensible this is once built, nothing proprietary here that is also insubstitutable|
|7. Secret?||2||Making a new N95 mask will solve hospital problems|
What has to go right for the startup to return money on investment:
1. Ship product; 2. Nurture relationships with hospitals; 3. Get recurring revenue
What the Risks Are
1. Engineering marginally better; 2. Not a venture sized opportunity; 3. Margins are not favorable
Bonus Muhan's Notes
Very cool, shows how long it can take to take something from concept to production.
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
Notice trends in how you think
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at email@example.com and let me know.