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.
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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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