Deal Abstract

Driven Technologies
Revolutionary drivetrain platform for bikes and e-bikes

Nerds have developed a new type of bicycle chain and pulley system and want to go head to head against the 100 year old invention.

Financials (VRB)

Question Notes
1. Fundraising Target? $1000000
2. Fundraised So Far? $686024
3. Pre-Money Valuation? $3300000
4. Previous Year's Annual Revenue $0
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-2483

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: Boulder, CO
2. Has at least 2 founders? False: Two
3. Has product in the market? False: No product in market
4. 6 months of continuous user growth or 6 months of revenue? False: No revenue
5. Notable investors? False: None
6. Post-funding, will have 18 months of runway? True: No burn yet

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

Question Score Notes
1. Engineering? 5 Incredible engineering improvement
2. Timing? 2 Not sure this is the right timing for market to adopt better tech on cycling
3. Monopoly? 1 No product in market
4. People? 4 Right people, esp with the parent co help
5. Distribution? 1 No manufacturing capacity
6. Durability? 4 Super durable if they can get the bicycle industry on it
7. Secret? 1 Better innovation can be better business and $1m is enough to compete against decades of millions of dollars of capital investment

What has to go right for the startup to return money on investment:

1. Start selling bicycles that are super high margin to bootstrap for lower margin bicycles like Tesla; 2. Go from R&D into mass manufacturer; 3. Build massive D2C brand

What the Risks Are

1. Super capital intensive; 2. No idea what unit economics are like; 3. Sadly, as much as I love bicycles, this doesn't seem like a growth industry on venture size (even bikesharees are more of a network venture play that hardware.)

Bonus Muhan's Notes

So so so cool. Can't wait to see one of these in the wild.


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