Robotics powered pharmacy on wheels. You place an order from anywhere and it delivers free to your doorstep. No more waiting in line for an hour at the pharmacy. Beats traditional pharmacies by delivering core value of drugs faster and cheaper, while cutting down costs of labor (robotics powered filling means less pharmacist cost,) and rent (no need to maintain storefronts and retail space.)
Minimum: $200 Crowd Note, Preferred Equity, Aug 2018
|1. A syndicate lead who has been investing for at least five years and has at least one notable, unicorn investment||Fail: Barry Karlin (CRC Health), Michael Pellini?|
|2. A startup that is based in Silicon Valley||Pass: Mountain View, CA|
|3. A start that has at least two founders (with two, you have a backup in case one quits)||Pass|
|4. A startup that has a product or service that is already in the market (you’re not qualified to invest in startups that haven’t released their products—and frankly you don’t need to take this risk.)||Pass|
|5. A startup that has either (a) six months of continuous user growth or (b) six months of revenue.||Pass: Increase of 273.5% from 2016 to 2017|
|6. A startup that has notable investors.||Fail: Not really, can’t tell who else big has invested.|
|7. A startup that, post-funding, will have eighteen months of cash remaining, commonly referred to as runway (ask the founder and syndicate lead how many months of runway they will have post-funding)||Pass: Way more than 18 months, at a burn of $42k/month for first half of 2017, and 7MM raised, even at $100k/month burn that’s 70 months of funding.|
- Have seen Capsule in MTA subways
- Interesting technology play that goes deeper on the value chain
- Experienced founders
- Tech augmented boring business — solid CAC, LTV, margins, etc.
- This delivery model seems inevitable—the question will be whether distribution disruptors defeat the original firms or the firms figure out distribution.
What the risks are
Want to read the whole post?
You don't have access to this post on Startup Investing for All by Muhan Zhang at the moment, but if you upgrade your account you'll be able to see the whole thing, including comments, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.