Deal Abstract

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, was an acquihire, Fancy’s Founder and CEO has been replaced, and I’m skeptical that a16z ( among others have invested in this company.

Want to invest alongside me? Subscribe to my premium newsletter, Startup Investing, to receive my exclusive recommendations on deals.

The 6 Calacanis Characteristics (91 161 18)

1. A startup that is based in SVNo: 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)

  1. The Engineering question (Can you create breakthrough technology instead of incremental improvements?):
    • Bad: Don’t see this as better than
  2. 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.
  3. The monopoly question (Are starting with a big share from a small market?): 
    • Bad: Never heard of this

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.