Deal Abstract

High tech bio company has made a better mammogram detecting solution.

Financials (VRB)

Question	Notes
1. Fundraising Target?	$5000000
2. Fundraised So Far?	$1471157
3. Pre-Money Valuation?	$200000000
4. Previous Year's Annual Revenue	$3089624
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)	~$-1135428

Source

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: Norcross, GA
2. Has at least 2 founders?	False: Two
3. Has product in the market?	True: Revenue generating
4. 6 months of continuous user growth or 6 months of revenue?	True: Went from $2m to $3m
5. Notable investors?	False: No one I recognize
6. Post-funding, will have 18 months of runway?	True: Just needs $2m or so

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

Question	Score	Notes
1. Engineering?	3	Great engineering
2. Timing?	2	Not sure why this is the right time for this company to take off
3. Monopoly?	2	Solid revenue but at $200m that $2m revenue is a high valuation
4. People?	2	Seems like right people
5. Distribution?	2	Distribution needs to be through partners, or as they say, luminary sites
6. Durability?	4	Super hard tech moat
7. Secret?	2	Exponential adoption of superior technology for mammograms is awaiting once this device goes full on the market

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

1. Get more site partners to buy this; 2. More doctors and more frequent mammograms due to ease, accuracy, and cost; 3. All components of the device including software are revenue streams

What the Risks Are

1. Biotech always makes me nervous; 2. The valuation is very, very high; 3. Adoption could be slow as how often do people get mammograms

Bonus Muhan's Notes

Very cool

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

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So, did I invest?

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