Deal Abstract

Invest in Janover Ventures
Republic is a startup investing platform where you can invest as little as $10 in impactful startups for commercial real estate financing. Fundraising $1m on a $20m valuation. Has revenues of $531k from network of websites that drive traffic to them. Profitable. Strangely, claims to have a team of 20 (full-time? part-time?) on a burn of only ~$376k or something. I tested the product and didn't get a response.

Thank you to Krishna and Giuseppe for sending me the deal!

Financials (VRB)

Question Notes
1. Fundraising Target? $25k-$1070k
2. Fundraised So Far? $449k
3. Pre-Money Valuation? $20m
4. Previous Year's Annual Revenue $531k
5. Previous Year's Annual Burn ~(-)$92k
Janover Ventures Form C:A.pdf

The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)

Criteria Yes/No
1. A startup that is based in SV? No: Boca Raton, FL
2. Has at least 2 founders? No: One CEO, bootstrapped
3. Has product in the market? Yes
4. 6 months of continuous user growth or 6 months of revenue? Yes: 2018 revenue to 2019 revenue increased from $0 to $500k.
5. Notable investors? No: Bootstrapped.
6. Post-funding, will have 18 months of runway? Yes: Profitable, so can reun in perpetuity by default.

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
1. Engineering? 2 Using a platform to bridge marketplace, nothing revolutionary
2. Timing? 2 Good, this is the commercial version of, but not sure if the market of B2B is as amenable to commoditization.
3. Monopoly? 2 Never heard of Janover before this deal. Commercial financing is very fractured.
4. People? 2 One founder seems fine, but not seeing other C-suite leadership. Also, somewhat suspect that they only spent $376k in 2019 and appear to employ 20 full-time people. Even at $50k a year that should be $1mm in salaries alone.
5. Distribution? 3 Good, distribution is this company's edge.
6. Durability? 3 Good, as two sided network

Want to read the whole post?

You don't have access to this post on Startup Investing for All by Muhan Zhang at the moment, but if you upgrade your account you'll be able to see the whole thing, including comments, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.