Deal Abstract

Invest in Edible Garden
Republic is a startup investing platform where you can invest as little as $10 in impactful startups

Two cofounders bought a struggling farm business and are now revamping it. Strange inconsistent financials that I need clarity on.

Financials (VRB)

|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$376416|
|3. Pre-Money Valuation?|$18500000|
|4. Previous Year's Annual Revenue |$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$0|


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: Belvidere, NJ
2. Has at least 2 founders? True: Two
3. Has product in the market? False: No revenue
4. 6 months of continuous user growth or 6 months of revenue? False: See above
5. Notable investors? False: Bootstrapped
6. Post-funding, will have 18 months of runway? True: No burn because no operations

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

Question Score Notes
1. Engineering? 1 Not sure where the engineering difference is
2. Timing? 1 Why is now the opportune time to start this business?
3. Monopoly? 1 No revenue
4. People? 2 Cofounders have worked before but no prior obvious success
5. Distribution? 2 Seems to have good distribution
6. Durability? 2 High capex to break into business but otherwise a commodity
7. Secret? 1 Now is the time to start a technology enabled unicorn business in growing produce?

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

1. Generate revenue; 2. Build out distribution that is directly with consumers; 3. Enter other higher margin businesses

What the Risks Are

1. Financial structure; 2. Commodity no innovation; 3. Not venture backable

Bonus Muhan's Notes

Lettuce learn more :)


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

Want to read the whole post?

You don't have access to this post on Startup Investing for All by Muhan Zhang at the moment, but if you upgrade your account you'll be able to see the whole thing, including comments, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.