High quality B-corp supply chain and furniture company wants to create a D2C brand that pays designers more equitably.
|1. Fundraising Target?||$1070000|
|2. Fundraised So Far?||$624682|
|3. Pre-Money Valuation?||$12000000|
|4. Previous Year's Annual Revenue||$2190282|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-798494|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Los Angeles, CA|
|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?||True: Revenue more than 10x from 2019 to 2020|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||False: Needs to have nearly a mil for 18 months|
|1. Engineering?||2||No engineering improvement, is business model and sourcing improvement|
|2. Timing?||2||D2c furniture is right time|
|3. Monopoly?||3||Good revenue|
|4. People?||2||Founder has right fundraising background but no furniture background|
|5. Distribution?||2||D2C so all through Internet|
|6. Durability?||2||Not sure product is what matters here, feel it's distribution and free shaping a la IKEA and Amazon|
|7. Secret?||2||By paying designers more equitably, Dims can get proprietary products and sell well designed furniture to people more cheaply through D2C|
What has to go right for the startup to return money on investment:
1. Manage costs while growing; 2. Furnish entire rooms and sell entire solutions; 3. Become really good at spotting new furniture that is tastemaking
What the Risks Are
1. Product is not as important as distribution; 2. Furniture unit economics are still tough; 3. Demand for ethical furniture is not growing at a venture clip
Bonus Muhan's Notes
Very cool, need to see some of the inventory.
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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