Deal Abstract

Invest in L5 Automation: Robots Picking Strawberries. Seriously. Hand-eye Coordination Software to transform the world.
Robots Picking Strawberries. Seriously. Hand-eye Coordination Software to transform the world.

Repeat founder and AgTech syndicate are building a two handed strawberry picker solution that should automate fruit harvesting.

Financials (VRB)

Question Notes
1. Fundraising Target? $1070000
2. Fundraised So Far? $440864
3. Pre-Money Valuation? $
4. Previous Year's Annual Revenue $12500000
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-1240626

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: SoCal
2. Has at least 2 founders? False: Two
3. Has product in the market? True: Picking strawberries
4. 6 months of continuous user growth or 6 months of revenue? True:
5. Notable investors? True: Farmhand Ventures
6. Post-funding, will have 18 months of runway? False: Needs $1.8m and not quite there yet

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

Question Score Notes
1. Engineering? 4 Using arms and cameras to execute on two arm solution
2. Timing? 3 Robotics good, but not sure if the technology is ready for prime time yet
3. Monopoly? 4 Not yet, but if it is the only deployable strawberry picker at scale then that's somethin
4. People? 4 Repeat founder with strong adviser
5. Distribution? 3 Has an anchor customer, good advisors, but uncertain how they would distribute efficiently than others
6. Durability? 4 Hard market to capture but if captured should be defensible
7. Secret? 3 Two handed robot picking is more efficient than other methods

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

1. R&D technology scales out well to franchised model; 2. Robot companies start rolling out at scale e.g. there are customers; 3. Other automation companies don't come into this or have a good alternative

What the Risks Are

1. Technology risk, can other vendors use the AI that easily; 2. Defensibility risk, is the hardware or software more defensible; 3. Do costs of servicing clients go up as team scales?

Bonus Muhan's Notes

Cool technology, would be curious to see testimonials from farmers.


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