SaaS company wants to sell an energy monitoring solution to businesses to help reduce their utility bill.
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$453209|
|3. Pre-Money Valuation?|$18000000|
|4. Previous Year's Annual Revenue |$191935|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-793777|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Tampa, FL|
|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: Revenue dropped from 2018 to 2019|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: At a mil will have 18 mths runway|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Platform that helps understand energy spikes better|
|2. Timing?||1||Not sure why now is the perfect time to build this business|
|3. Monopoly?||2||Has a good number of high profile customers, but declining revenue|
|4. People?||2||Strong founder but no other major teammates|
|5. Distribution?||2||Selling B2B requires connections|
|6. Durability?||3||If can be built, very durable|
|7. Secret?||1||Energy costs are enough of a pain point that large businesses will pay for a SaaS platform to help them manage and save energy costs|
What has to go right for the startup to return money on investment:
1. Get growth back on track; 2. Scale out a B2B sales playbook; 3. Demonstrate consistent return on investment for monitoring energy savings
What the Risks Are
1. Is a third party SaaS business the right entity to build this? 2. High costs and not corresponding high revenue; 3. Vitamin not a painkiller
Bonus Muhan's Notes
Very cool business, need to see founder's vision for scaling
This is where I’ll post updates about the company. This way all my notes from offering to post-offering updates will be on one page.
Review these deal memos every time the startup raises a new round
Test if original thesis still applies
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