Deal Abstract
D2C testing company wants to build the subscription wellness platform to help you regularly assess your chronic disease risks.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $1070000 |
| 2. Fundraised So Far? | $213097 |
| 3. Pre-Money Valuation? | $5000000 |
| 4. Previous Year's Annual Revenue | $7418 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-250355 |
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: Austin, TX |
| 2. Has at least 2 founders? | False: Two |
| 3. Has product in the market? | True: Shipping out test units and such |
| 4. 6 months of continuous user growth or 6 months of revenue? | True: Yup, grew from $0 to $7418. Also 'We are still finalizing year-end accounts but expect that the final number will be close to $250k top line.' |
| 5. Notable investors? | True: Capital Factory |
| 6. Post-funding, will have 18 months of runway? | True: Needs $375k |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 2 | Lots of testing solutions at home, but cool that they designed an antibody test |
| 2. Timing? | 3 | Good timing with pandemic |
| 3. Monopoly? | 1 | Seems like modest revenue |
| 4. People? | 2 | People seem fine, but a little thin on teeam |
| 5. Distribution? | 2 | Doing well with D2C and also Amazon |
| 6. Durability? | 2 | Big if is whether the software platform will be enough to keep people on |
| 7. Secret? | 2 | Sensitivity around chronic disease is going to spike, so the company's focus on insulin, blood sugar, etc. will have venture sized demand |
What has to go right for the startup to return money on investment:
1. Establish strong partnerships with doctors; 2. Probably get things backed by insurance at some point; 3. The market has to happen
What the Risks Are
1. The market doesn't exist and only fitness
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