Delicious coconut smoothie in a bottle. Question is can they rinse lather and repeat to become an enormous beverage company.
|1. Fundraising Target? |$593165|
|2. Fundraised So Far?|$127277|
|3. Pre-Money Valuation?|$14000000|
|4. Previous Year's Annual Revenue |$635874|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-652707|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Torrance, CA|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: 2018 rev to 2019 rev was grown from $327k to $635k|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||False: Would need $750k in funds raised|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||1||Coconut smoothie instead of water|
|2. Timing?||1||Is now the perfect time in history to launch a coconut smoothie?|
|3. Monopoly?||1||Don't know anyone who drinks it|
|4. People?||3||Good team with beverage experience|
|5. Distribution?||2||Still has to go through the normal gatekeepers a la Whole Foods and such|
|6. Durability?||1||Supply chains are good, but is the coconut smoothie in the eponymous market or in the healthy alternative beverage market?|
|7. Secret?||1||2021 is the perfect time to launch a coconut smoothie of which there is enormous untapped demand|
What has to go right for the startup to return money on investment:
1. People love the coconut smoothie; 2. Expand into other beverages based on similar principles (using the whole fruit?), 3. Scale baby scale
What the Risks Are
1. Vitamin not a painkiller; 2. Irreproducible in terms of constant innovation; 3. Margins are standard to beverage
Bonus Muhan's Notes
Would love to try the smoothie in a bottle next time I'm in a WFH.
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
Test if original thesis still applies
Notice trends in how you think
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at firstname.lastname@example.org and let me know.