Sexual wellness brand and manufacturer. Had $7m in seed funding from founder and has a star-studded team.
|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)
|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|
|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
Bonus Muhan's Notes
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
Notice trends in how you think
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at email@example.com and let me know.