Deal Abstract

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Republic

Digital asset estate planning, like writing a will for all the platforms you should have saved in your password manager.

Financials (VRB)

Question Notes
1. Fundraising Target? $250000
2. Fundraised So Far? $230000
3. Pre-Money Valuation? $8000000
4. Previous Year's Annual Revenue $1049
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$2800
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? True: Two
3. Has product in the market? True: Great idea. Seems like it solves a significant problem with tracking down digital assets after a loved ones passing
4. 6 months of continuous user growth or 6 months of revenue? True: They 6x revenue from 2019 to 2020.
5. Notable investors? False: None that I recognize
6. Post-funding, will have 18 months of runway? True: The business is essentially still in idea stage
Source

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
1. Engineering? 1 Not sure how this is better than Willing OR a password manager
2. Timing? 2 Problem definitely needs to be solved
3. Monopoly? 1 No revenue
4. People? 2 Family team is good but not sure why this family has unfair advantage in this problem space
5. Distribution? 1 No unfair advantages on distribution
6. Durability? 1 Competing against password managers
7. Secret? 1 Digital asset estate planning is going to beat conventional estate planning AND password managers

What has to go right for the startup to return money on investment:

1. Launch a product and make revenue; 2. Build something sticky; 3. Strategically navigate password manager and estate planning boundary

What the Risks Are

1. No product; 2. No market; 3. Problem already being solved by more advanced competitors, the reality is that if someone doesn't care about password managers or digital hygiene they are not going to adopt

Bonus Muhan's Notes

Very cool family business.

Updates

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Review these deal memos every time the startup raises a new round

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So, did I invest?

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Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.