Deal Abstract

CreditKarma/ Offers for real estate. One team that grew from 2019 monthly revenue of $20k to $90k. Eating the lunch of mortgage originators, title companies, and insurance companies. The market is enormous and success will pend on the team being able to dominate each vertical at the right speed. Analysis requested by a reader (yes, I take requests at!)

Shoutout to J.V. for the tip!

The 6 Calacanis Characteristics (91 161 18)

1. A startup that is based in SVFail: Dallas, TX
2. Has at least 2 founders Pass: (3)
3. Has product in the market Pass
4. 6 months of continuous user growth or 6 months of revenue.Pass: Republic doesn’t have as good financials as SeedInvest, but good. “(1) Revenue — we launched our MVP operations in late March 2019 and generated over $250k in revenue that year. Most recently, we closed June as our back-to-back record breaking revenue month at $90k in June alone. You can read more about this in our prior [Updates] “June: 143% MoM revenue growth…” update.” Monthly rev 2019 of $20k to $90k is positive.
5. Notable investors?Sort Of: UT Austin and Google Cloud for Startups.
6. Post-funding, will have 18 months of runway Fail: Raised $240k on $20k/mth burn means 12 months of burn. “(1) We operate on a very low fixed-cost basis of $20k /mo as most of our team work on commission (1099)

(2) No, if you take a look at the last chart in our [Business Model] section you can see we are projecting profitability by Q2 2021″

The 7 Thiel Questions (ETMPDDS)

  1. The Engineering question:
    • Good: If the platform definitely converges title search, mortgages, and insurance, that’s big money.
  2. The Timing question
    • Good, Maybe: Good time for digital platforms and saving money. Unsure why other firms haven’t been able to bridge this gap yet.
  3. The monopoly question
    • Good: If they can nail it, this would be an insanely good

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