Energy nerds have built a new battery that is better than acid chemical batters. But can they build a unicorn out of it.
|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)
|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)
|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
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.