Another “virtue” aspirational competitor to Amazon. Company has existed for a decade and burned $100m in capital. Compare to DoneGood two years ago. Revenue decreased in last year, Jet.com was an acquihire, Fancy’s Founder and CEO has been replaced, and I’m skeptical that a16z (https://a16z.com/portfolio/) among others have invested in this company.
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The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||No: New York, NY|
|2. Has at least 2 founders||Yes (3)|
|3. Has product in the market||Yes|
|4. 6 months of continuous user growth or 6 months of revenue.||No: 2018 to 2019, revenue went from 2.16M to $877k.|
|5. Notable investors?||Allegedly: General Catalyst, a16z, Jack Dorsey, Will Smith, and Carlos Slim.|
|6. Post-funding, will have 18 months of runway||No: 2019 burn was $4.2m and only fundraised $436k so far. This is 1.2 months of runway.|
The 7 Thiel Questions (ETMPDDS)
- The Engineering question (Can you create breakthrough technology instead of incremental improvements?):
- Bad: Don’t see this as better than Amazon.com
- The Timing question (Is now the right time to start your particular business?):
- Bad: Jeff Bezos has made nearly $100 BILLION (that’s b as in baller, b as in bazonkers, b as in Bezos…) since the pandemic (source.) Not convinced this is a good time to go against Amazon. Maybe it’ll never be a good time to compete against Bezos lol.
- The monopoly question (Are starting with a big share from a small market?):
- Bad: Never heard of this company before today.
- The people question (Do you have the right team?):
- Average: The founders of Jet.com had Marc Lore (founder of Diapers.com who sold to Amazon under capitalism extortion.) If Jet.com was just an acquisition against Walmart, I’m not convinced this team has unfair
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