Deal Abstract

Invest in Moku Foods
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Food innovation team is using mushrooms to make faus meat. Pre-revenue, pre-product.

Financials (VRB)

|Question|Notes|
|---|---|---|
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$238876|
|3. Pre-Money Valuation?|$8000000|
|4. Previous Year's Annual Revenue |$354|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-259524|

Source

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: Los Angeles, CA
2. Has at least 2 founders? False: Two
3. Has product in the market? False:
4. 6 months of continuous user growth or 6 months of revenue? True: From $0 to $354 lol
5. Notable investors? False: No one I recognize
6. Post-funding, will have 18 months of runway? True: Well on track to hit 18 months of runway.
Source

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

Question Score Notes
1. Engineering? 2 Mushroom based jerky, not sure if better than kelp (Akua)
2. Timing? 2 Good time for food science and alternative foods
3. Monopoly? 1 No market share
4. People? 2 Good team with food experience
5. Distribution? 1 eCommerce and supermarkets
6. Durability? 2 Will need to keep innovating and making new mushroom foods
7. Secret? 1 Mushrooms is the best plant to make faus meat from from a taste and price perspective

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

1. Thesis has to be right; 2. Launch product; 3. Build brand and partnerships simultaneously

What the Risks Are

1. Mushroom is marginal improvement; 2. Constant innovation risk; 3. Food is distribution not innovation market

Bonus Muhan's Notes

Mushroom coffee, mushroom meat, is mushroom the next cauliflower?

Updates

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

So, did I invest?

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Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.