Deal Abstract
Republic
VR company is building hardware/software/production house for VR experiences for the elderly. Strong recurring revenue for selling to elder care communities.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $1070000 |
| 2. Fundraised So Far? | $73129 |
| 3. Pre-Money Valuation? | $8000000 |
| 4. Previous Year's Annual Revenue | $139781 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-703321 |
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: Flower Mound, TX |
| 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: Rev grew from 59 to 139k |
| 5. Notable investors? | True: Capital Factory def a regional player, HTC is a faded glory kind of deal (HTC Vive?) |
| 6. Post-funding, will have 18 months of runway? | True: Just at 18 months if $1m raised |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 2 | Company that is allegedly developing hardware and software, but why this company over Oculus? |
| 2. Timing? | 3 | Hard to get better timing than COVID |
| 3. Monopoly? | 3 | Good traction |
| 4. People? | 2 | Company has solid media backgrounds but no hardware chops |
| 5. Distribution? | 3 | Selling to retirement homes the real gem here |
| 6. Durability? | 3 | Focusing on building a brand for |
| 7. Secret? | 3 | Old people, with money, in large quantities, are going to get their kicks through virtual reality |
What has to go right for the startup to return money on investment:
1. Old people have to not be luddites; 2. Get really good at both hardware and software, and figure out what the core business is here; 3. Don't incur high servicing costs
What the Risks Are
1. Does the market want this? What's prevented Vive/Oculus/Google Cardboard
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