Deal Abstract

Modal Living
Modern, modular backyard homes  and offices

Printing 3D additional dwelling units (ADUs) to increase home equity and affordable housing.

Financials (VRB)

Question Notes
1. Fundraising Target? $3200000
2. Fundraised So Far? $27200
3. Pre-Money Valuation? $9000000
4. Previous Year's Annual Revenue $1600000
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-2600000

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: Salt Lake City, UT
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: Increased revenue by 10x
5. Notable investors? False: No one I recognize
6. Post-funding, will have 18 months of runway? False: Only half a year of runway

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

Question Score Notes
1. Engineering? 2 This is just 3d printing additional dwelling units, not sure why this is better than already existing pre-fab
2. Timing? 2 People def need more housing
3. Monopoly? 2 Good revenue but have never heard of this company previously
4. People? 3 Strong team, has the right backgrounds
5. Distribution? 2 Selling directly to homeowners which is good, but this is a very challenging product to ship
6. Durability? 3 Very durable company as this is a physical good
7. Secret? 1 Building ADUs using 3D printing is a venture backable business

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

1. Demand for ADU's goes through the roof; 2. This company can deliver ADUs at scale and with better margins; 3. Regulatory burden eases and people can build more ADUs

What the Risks Are

1. Fundamentally the unit economic costs of building are still brutal eg this business is not venture backable; 2. Demand for ADUs is not growing at a venture clip; 3. Manufacturers of ADUs decide to go DTC

Bonus Muhan's Notes

Very cool to see startups in construction, but I'm curious to see if this can actually be meaningful innovation.


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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