VR company is building hardware/software/production house for VR experiences for the elderly. Strong recurring revenue for selling to elder care communities.
|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)
|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|
|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 to take this to market? 2. Attacking media, software, and hardware could mean lack of focus; 3. Market is not growing fast enough
Bonus Muhan's Notes
Very, very cool. Hope they can crack this market.
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Review these deal memos every time the startup raises a new round
Test if original thesis still applies
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