Deal Abstract

Blockchain powered project management software wants to revolutionize construction management.

Financials (VRB)

Question	Notes
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

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?	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

Source

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

Question	Score	Notes
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

Updates

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Review these deal memos every time the startup raises a new round

Test if original thesis still applies

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So, did I invest?

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