Scientific innovation that claims to save fuel by up to 8%, increases lubrication, decreases dangerous emissions up to 50%. Technology claims to be 800x more effective than competing fuel additives and is priced up to 20x lower. Pre-revenue potential vitamin-not-painkiller that is mainly a team of academics, with no one experienced in B2B sales for energy companies or commercializing scientific innovations.
Shout out to readers Max and John for forwarding me the deal!
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The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||No: Austin, TX|
|2. Has at least 2 founders||No: CEO is all roles, literally wrote: “CFO, Secretary, President, Treasurer, CEO”|
|3. Has product in the market||No|
|4. 6 months of continuous user growth or 6 months of revenue.||No|
|5. Notable investors?||No: Don’t recognize Sputnik ATX.|
|6. Post-funding, will have 18 months of runway||Yes: Raising $1.07m on $47.175k, so 22 months of runway if success.|
The 7 Thiel Questions (ETMPDDS)
- The Engineering question:
- Good: reducing emissions by 50% is impressive.
- The Timing question:
- Bad: oil is in the tanker (heh) right now and I don’t see them winning long term over electric.
- The monopoly question:
- Good: Though to a latter point, mass producing something is very different than making it in a lab.
- The people question:
- Lacking: No one here has experience selling to big oil. Or taking a scientific innovation for mass production. Mostly a team of nerds (which I’m fond of, but alas…)
- The distribution question:
- Bad: There is no impending pain for gas companies that don’t buy this product.
- The durability question:
- Bad: If gas is going the way of the dinosaur, I don’t see a dying industry suddenly embracing innovation.
- *What is the hopeful secret?:
- Gas companies will finally start paying money for prevention
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