Deal Abstract

Social network for weed consumers, producers, vendors, and industry. Is the future not just one LinkedIn but many different LinkedIns for different verticals?
Financials (VRB)
Question | Notes |
---|---|
1. Fundraising Target? | $1500000 |
2. Fundraised So Far? | $544980 |
3. Pre-Money Valuation? | $8000000 |
4. Previous Year's Annual Revenue | $111012 |
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-657803 |
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: Denver, CO |
2. Has at least 2 founders? | True: Two |
3. Has product in the market? | True: Revenue generating |
4. 6 months of continuous user growth or 6 months of revenue? | True: Revenue grew from $6k to $111k, 2018 to 2019 |
5. Notable investors? | False: No one I recognize |
6. Post-funding, will have 18 months of runway? | True: Will need roughly $900k for 18 months runway |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
Question | Score | Notes |
---|---|---|
1. Engineering? | 1 | Looks like a specialized version of LinkedIn |
2. Timing? | 1 | Not sure why having a specialized version of LinkedIn right now is advantageous |
3. Monopoly? | 3 | Strong traction in a very niche market |
4. People? | 2 | Good executive team but no one with social network business experience |
5. Distribution? | 3 | Strong traction implies good distribution |
6. Durability? | 2 | If weed gets completely destigmatized, does that mean LinkedIn eats Leafwire's lunch? |
7. Secret? | 1 | Leafwire is going to provide cover for a taboo industry of marajuana and ultimately becomes the LinkedIn for all ugly jobs that don't live on LinkedIn |
What has to go right for the startup to return money on investment:
1. Reach dominant position in marajuana; 2. Expand beyond marajuana; 3. Clarify what the business is.
What the Risks Are
1. This business is destined to sunset as ugly jobs become increasingly more accepted e.g. weed
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