Deal Abstract
MiamiTech company is making Voice AI for care. Has lots of customers and has made lots of calls, though very high burn and valuation for relatively low revenue.
Financials (VRB)
|Question|Notes|
|---|---|---|
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$109609|
|3. Pre-Money Valuation?|$45700000|
|4. Previous Year's Annual Revenue |$996230|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-1654724|
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: Miami, FL |
| 2. Has at least 2 founders? | False: Only one CEO |
| 3. Has product in the market? | True: |
| 4. 6 months of continuous user growth or 6 months of revenue? | True: 2018 rev was 78k, 2019 rev was 996k |
| 5. Notable investors? | False: Nothing, but worth seeing: https://www.crunchbase.com/organization/care-angel |
| 6. Post-funding, will have 18 months of runway? | False: 2019 burn was 1.6m, only raising 1.06m so no |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 3 | Better than nothing, but the fact that there's no live demo makes me wonder |
| 2. Timing? | 2 | Not a bad time to build AI but still no big winners yet |
| 3. Monopoly? | 2 | Good traction |
| 4. People? | 2 | I was part of the Miami tech scene and strangely don't know anyone on the team. In addition, appears most of team is not full-time. |
| 5. Distribution? | 2 | Has been doing well selling to large medical organizations |
| 6. Durability? | 4 | If they can build this, absolutely durable. Both from sales and technology portion. |
| 7. Secret? | 3 | There's going to be/is a massive shortage in regular care providers and health organizations are going to supplement the shortage with voice AI. |
What has to go right for the startup to return money on investment:
1. Technology has to be good; 2. At one point probably integrate voice AI into an app that people can use; 3. Scale efficiently and probably have some people who look over the data collected
What the Risks Are
1. Still too early for AI; 2. Doesn't actually replace that much healthcare workers, just gives them another system to manage; 3. Not a 10x better solution
Bonus Muhan's Notes
I think I heard about Care Angel back when I lived in Miami. If so, very cool to see them again.
Updates
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