Deal Abstract

Invest in Kanda (YC W21): A platform for contractors to offer “buy now, pay later” financing | Wefunder
A platform for contractors to offer “buy now, pay later” financing

Financing company wants to help contractors pass 0% interest split payments to their customers.

Financials (VRB)

Question Notes
1. Fundraising Target? $1070000
2. Fundraised So Far? $56317
3. Pre-Money Valuation? $12000000
4. Previous Year's Annual Revenue $0
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$0

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: Dover, DE
2. Has at least 2 founders? True: Two
3. Has product in the market? False: No revenue
4. 6 months of continuous user growth or 6 months of revenue? False: No revenue
5. Notable investors? False: No one I recognize
6. Post-funding, will have 18 months of runway? True: No burn so infinite runway

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

Question Score Notes
1. Engineering? 1 This is Affirm/financing for construction contractors
2. Timing? 2 Lots of these financing platforms showing up
3. Monopoly? 1 Very little market share
4. People? 2 Team seems fine with good experience, but no financials online
5. Distribution? 3 Working with contractors to offer the solution to customers
6. Durability? 1 Not sure how another finance company wouldn't come in and swoop this opportunity if it's this lucrative
7. Secret? 1 Offering financing to customers who couldn't afford to budget and save for big repairs is a venture backable business

What has to go right for the startup to return money on investment:

1. Assess the credit and ability of people to pay accurately; 2. Build recurring revenue from contractors being able to consistently book new revenue; 3. Expand to more than just contractors as the number of contractors isn't a fast growing market

What the Risks Are

1. Contractors is not a fast growing market; 2. The category of customers who can't save and manage money for rehab is not a particularly lucrative market; 3. Construction management is also not growing at a venture speed

Bonus Muhan's Notes

Very curious to see more of the financials here.


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