Miami company wants to build a competitor to Boatsetter. Pre-rev, pre-product, at a really tempting valuation.
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$47832|
|3. Pre-Money Valuation?|$2500000|
|4. Previous Year's Annual Revenue |$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-6851|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Miami, FL|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||False: No product in market|
|4. 6 months of continuous user growth or 6 months of revenue?||False: No Users|
|5. Notable investors?||False: I see '500 Startups' but unsure what that means|
|6. Post-funding, will have 18 months of runway?||True: But somewhat meaningless statement given they have no real burn/operations yet|
|1. Engineering?||1||Not sure how this is better than Boatsetter|
|2. Timing?||2||Great time to build a marketplace|
|3. Monopoly?||1||No product in market|
|4. People?||1||No proven commercial successes in this vertical|
|5. Distribution?||2||Online two-sided marketplace|
|6. Durability?||3||If they can build it, very durable|
|7. Secret?||1||Building a unicorn business using revenue sharing is the way to beat differentiation|
What has to go right for the startup to return money on investment:
1. Generate revenue; 2. Build a two-sided marketplace; 3. Differentiate from other existing marketplaces
What the Risks Are
1. What's the difference between this company and Boatsetter? Also in Miami; 2. At what point does Airbnb experiences enter this market via Experiences?; 3. How long will it take to develop the site and generate revenue?
Bonus Muhan's Notes
So many yacht marketplaces, not enough yachts (Jokes; owning a boat or plane is a horrible investment)
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
Notice trends in how you think
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at firstname.lastname@example.org and let me know.