Deal Abstract

Sexual wellness brand and manufacturer. Had $7m in seed funding from founder and has a star-studded team.

Financials (VRB)

Question	Notes
1. Fundraising Target?	$1070000
2. Fundraised So Far?	$488484
3. Pre-Money Valuation?	$40000000
4. Previous Year's Annual Revenue	$7402729
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)	~$-4194526

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: Bend, OR
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: Fantastic revenue
5. Notable investors?	False: No one I know
6. Post-funding, will have 18 months of runway?	False: Needs $7.5m in venture funding

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

Question	Score	Notes
1. Engineering?	2	Engineering seems fine but branding seems key differentiator here
2. Timing?	3	Good time for wellness and sex tech
3. Monopoly?	3	$7m in sales is hard to refute
4. People?	5	Super star team
5. Distribution?	3	Again, check out the $7m in revenue
6. Durability?	3	Good brand, revenue, and investors, super durable, though I believe there are other brands coming for this market too
7. Secret?	2	Building a lifestyle brand around sexual wellness is going to return venture style returns

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

1. Succeed in destigmatizing sexual wellness; 2. Build a very well known brand like My Lola; 3. Get celebrities and famous people repping the brand

What the Risks Are

1. Growing at normal e-commerce scale; 2. Destigmatizing the market and demand for this is more of a macro issue than one that the company can meaningfully accelerate; 3. Competitors and knock offs/need to build moat