Founders (spouses?) team up to make CBD dog treats. Subscription economy, CBD, and dogs/spending on pets during recession, lots of attractive components together.
|1. Fundraising Target? |$500000|
|2. Fundraised So Far?|$47382|
|3. Pre-Money Valuation?|$5000000|
|4. Previous Year's Annual Revenue |$175092|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$2373|
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?||True: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Tripled revenue|
|5. Notable investors?||False: Bootstrapped|
|6. Post-funding, will have 18 months of runway?||True: Profitable!|
|1. Engineering?||3||Haven't heard of CBD treats for dogs explicitly|
|2. Timing?||3||Hemp, pets, anxiety...|
|3. Monopoly?||2||Profitable and good revenue|
|4. People?||3||Strong results. No special advantage, but founders have good results.|
|5. Distribution?||3||D2c and that SUBSCRIPTION economy|
|6. Durability?||3||Subscription subscription subscription|
|7. Secret?||3||Subscription weed treats + dogs + economic recession = $$$|
What has to go right for the startup to return money on investment:
1. Scale and go big; 2. Develop other high margin weed related products, maybe for cats/other pets?; 3. Keep building that subscription economy and potentially enter marketplace
What the Risks Are
1. Incredibly small business, is it venture backable; 2. Is the business a food company, weed company, or lifestyle brand?; 3. What if this isn't defensible?
Bonus Muhan's Notes
Stunning business for a vertical I have no personal experience in (sorry readers, I don't own pets.)
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.
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