D2C testing company wants to build the subscription wellness platform to help you regularly assess your chronic disease risks.
|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)
|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|
|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 geeks really test their insulin resistance levels at home; 2. This business needs telehealth to take off before it can get to final stage; 3. What's stopping testing companies from developing their test directly/plugging into EMR companies to provide results?
Bonus Muhan's Notes
Very cool, esp since it's an antibody test offering at home.
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Review these deal memos every time the startup raises a new round
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