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)

Question Notes
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
Source

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
Source

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 :)

Updates

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


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