Deal Abstract

Cloudastructure | Computer Vision for Covid-19 and Beyond
Invest in Cloud Video Surveillance with Computer Vision that can see what is most relevant today and in the future.

Repeat founders are building a cloud based facial recognition/security solution. I worked for a startup in this space in 2015, so color me biased.

Financials (VRB)

Question Notes
1. Fundraising Target? $28000000
2. Fundraised So Far? $24000000
3. Pre-Money Valuation? $30000000
4. Previous Year's Annual Revenue $77000
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-536000
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? True: San Mateo, CA
2. Has at least 2 founders? False: Two
3. Has product in the market? True: Revenue generating
4. 6 months of continuous user growth or 6 months of revenue? False: Declined from 130k to ~70k, 2018 to 2019
5. Notable investors? False: No one I recognize reeally
6. Post-funding, will have 18 months of runway? True: Only needs $1m for 18 months at 2019 burn

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

Question Score Notes
1. Engineering? 2 It's security systems to the cloud. Better than nothing but not sure where the engineering is better.
2. Timing? 2 Still not sure whether facial recognition/detect will take off now. I worked as a software engineer for a facial recognition startup in 2015 and 6 years later, still don't really see the industry having proceeded.
3. Monopoly? 1 Honestly embarrasingly small revenue for a company valued at $30m
4. People? 4 Really stacked team
5. Distribution? 3 Team definitely has the ability to sell this product... assuming the market exists
6. Durability? 3 If they can build it, definitely not easy to replicate
7. Secret? 2 The facial recognition/analysis market is going to be captured significantly more by cloud providers... if the market is that large

What has to go right for the


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