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

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: 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

Source

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 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.

Updates

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