Deal Abstract
Helix Power Corp
Sustainable energy storage enabling a zero-carbon future
Energy nerds have built a new battery that is better than acid chemical batters. But can they build a unicorn out of it.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $1070000 |
| 2. Fundraised So Far? | $526761 |
| 3. Pre-Money Valuation? | $10000000 |
| 4. Previous Year's Annual Revenue | $195358.35 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-56208 |
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
| Criteria | Yes/No |
|---|---|
| 1. A startup that is based in SV? | False: Boxford, MA |
| 2. Has at least 2 founders? | False: Two |
| 3. Has product in the market? | False: Contracting revenue |
| 4. 6 months of continuous user growth or 6 months of revenue? | True: Grown |
| 5. Notable investors? | False: No one I recognize |
| 6. Post-funding, will have 18 months of runway? | True: If $600k then 18 months runway |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 3 | Nice engineering new tech |
| 2. Timing? | 2 | Not sure why suddenly the demand for these motors would go up |
| 3. Monopoly? | 1 | No market share |
| 4. People? | 2 | Lots of nerds trying to bring tech to market |
| 5. Distribution? | 2 | People have right background but can they sell |
| 6. Durability? | 2 | If they build and sell it, it should be durabel |
| 7. Secret? | 1 | The advent of electric power demand will be solved by a novel technology that uses kinetic batteries as opposed to other innovations |
What has to go right for the startup to return money on investment:
1. Commercialize product; 2. Leverage relationships to sell; 3. Genuinely be a paradigm shifting improvement and not just a marginal improvement
What the Risks Are
1. Good products don't make for good businesses; 2. The selling of a battery product instead of an integrated solution not good; 3. Nerds aren't the best at selling
Bonus Muhan's Notes
Updates
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 mail@muhanzhang.com and let me know.