$50m investment fund focusing on small/mid-size commercial and residential properties in NYC.
|1. Fundraising Target?||$50000000|
|2. Fundraised So Far?||$0|
|3. Pre-Money Valuation?||$0|
|4. Previous Year's Annual Revenue||$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$0|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: New York, NY|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: NYC real estate|
|4. 6 months of continuous user growth or 6 months of revenue?||True: From 2020 to 2021 definitely|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||False: No burn really, just an investment fund|
|1. Engineering?||1||Not sure why this is better than other funds|
|2. Timing?||2||Arguing that COVID would make this time good|
|3. Monopoly?||1||Not relevant|
|4. People?||2||Fund manager seems fine|
|5. Distribution?||1||No product, investment fund|
|6. Durability?||5||Real estate in Manhattan is as durable as it gets|
|7. Secret?||1||Investing in NYC after the pandemic is a good timing|
What has to go right for the startup to return money on investment:
Real estate in NYC has nearly no risk, the problem is will the returns be worth writing home about.
What the Risks Are
1. NYC is very expensive; 2. No value add; 3. Conditions for making money are very conditional
Bonus Muhan's Notes
Returns may be tepid on this investment, but risk is also low.
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.
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