Managed marketplace for pet grooming. Generated $600k in revenue in 2018, bootstrapped all the way to current valuation of $6 million. Needs to scale up rapidly, but could become a platform for pet-care and expand in a low-regulation market to dozens of cities in the next few years.
Shout out to reader Max 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: Yonkers, NY|
|2. Has at least 2 founders||Yes: 2 (Each owns 37% of stock, one is CEO and the other is VP.)|
|3. Has product in the market||Yes (4 star review with 50 ratings on iPhone App Store)|
|4. 6 months of continuous user growth or 6 months of revenue.||Yes: 2019 revenue was $597k and 2020 revenue halfway through was 376k (if extrapolated to double is 752k)|
|5. Notable investors?||No: mostly bootstrapped and debt financed!|
|6. Post-funding, will have 18 months of runway||No: 2019 burn was $933k/yr, raising total of $1070k, so 13.76 months.|
The 7 Thiel Questions (ETMPDDS)
- The Engineering question:
- Good: this is a marketplace which is by definition a better UI/UX than individual providers.
- The Timing question:
- Uncertain: Not sure if it’s still true, but historically, pets is an extremely recession proof industry: link.
- The monopoly question:
- Good: one marketplace to rule all the pet groomers forever.
- The people question:
- Fine: Team seems fine, but not seeing anyone with marketplace. Zege has plenty of pet experience which is crucial.
- The distribution question:
- Good: Taking individual pet care locations and putting them on marketplaces.
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