NY Opportunity Fund Deal Memo (Closing Date: 2022-12-31)

Deal Abstract

NYC Opportunity Fund · NYC Opportunity Fun... — Republic
Republic is a startup investing platform where you can invest as little as $10 in impactful startups

$50m investment fund focusing on small/mid-size commercial and residential properties in NYC.

Financials (VRB)

Question Notes
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)

Criteria Yes/No
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

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
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.

Updates

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So, did I invest?

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Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.