Deal Abstract

Optelos
A patented data management, visualization, and AI analytics SaaS solution for industrial asset inspection

Tech enabled service provider that has software, hardware, and data science to help oil, gas, and telco do asset maintenance

Financials (VRB)

Question Notes
1. Fundraising Target? $2500000
2. Fundraised So Far? $182500
3. Pre-Money Valuation? $8000000
4. Previous Year's Annual Revenue $363681
5. Previous Year's Annual Burn ~$-318592
Source

The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)

Criteria Yes/No
1. A startup that is based in SV? ****: Pflugerville, Texas
2. Has at least 2 founders? True: Two
3. Has product in the market? True:
4. 6 months of continuous user growth or 6 months of revenue? True: 2018 rev from 106k to 150k in 2019, and also: '2020 YTD revenue is over $750K (as of October 2020), representing a 897% increase in annual revenue since commercialization began in 2017 (unaudited)'
5. Notable investors? ****: 'Optelos was accepted into Capital Factory’s 2019 VIP Accelerator program and is backed by key investor AustinLee Ventures', I think Capital Factory also backed Hidrent.
6. Post-funding, will have 18 months of runway? True: They'll have 6 years of runway if they raise 2m lol
Source

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

Question Score Notes
1. Engineering? 4 Instead of having only text database, using AI to convert visual data into text data that is then querable.
2. Timing? 3 Great time for B2B SaaS, always, but curious whether ML/AI is right time.
3. Monopoly? 2 I'm not too familiar with visual asset maintenance but given that this is a deep niche I'm going to assume yes.
4. People? 3 Very sparse info on team, but honestly, team looks like bunch of Texan dudes working for old industries like oil and gas, so checks out.
5. Distribution? 3 Uncertain, but that revenue though.
6. Durability? 4 Insanely defensible, but hard to build.
7. Secret? 3 There is enough low hanging fruit in visual inspection


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.