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|
|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
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