Deal Abstract
Republic
SaaS company wants to sell an energy monitoring solution to businesses to help reduce their utility bill.
Financials (VRB)
| Question | Notes |
|---|---|
| 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)
| Criteria | Yes/No |
|---|---|
| 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)
| Question | Score | Notes |
|---|---|---|
| 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
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