Blockchain powered project management software wants to revolutionize construction management.
|1. Fundraising Target?||$1070000|
|2. Fundraised So Far?||$549707|
|3. Pre-Money Valuation?||$7500000|
|4. Previous Year's Annual Revenue||$65340|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-85455|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: New Lenox, IL|
|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: Decreasing revenue|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Only needed $120k for runway|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||3||Using crypto to fix record keeping|
|2. Timing?||1||Why is now the time these companies will adopt this?|
|3. Monopoly?||1||Decreasing revenue|
|4. People?||2||Right founder but not seeing more unfair advantages selling B2B esp given revenue|
|5. Distribution?||2||Founder has good base but not phenomenal base|
|6. Durability?||4||If you can build this, insanely defensible|
|7. Secret?||1||Construction companies are going to leave behind their proprietary workflow systems internally to collaborate on a blockchain powered external standard|
What has to go right for the startup to return money on investment:
1. Troubleshoot revenue; 2. Get more sales; 3. Go deep first before expanding
What the Risks Are
1. Blockchain is a tool not a solution; 2. Firms will be reluctant to have new ways of doing things forced on them; 3. Real estate in general is quite any technology and innovation
Bonus Muhan's Notes
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
Notice trends in how you think
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at email@example.com and let me know.