Citibike for paddleboards. Bootstrapped by founders, friends, and family. Has revenue but uncertainty lies in building an outdoors experience business during COVID. Based out of Miami, FL!
|1. Fundraising Target? |$1500000|
|2. Fundraised So Far?|$98980|
|3. Pre-Money Valuation?|$5000000|
|4. Previous Year's Annual Revenue |$2783|
|5. Previous Year's Annual Burn |~$|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Key Biscayne, FL! (I used to live in Miami FL)|
|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?||False: Though first half of 2020 already higher than 2019. Also, cutting some slack because COVID.|
|5. Notable investors?||False: Mainly bootstrapped with CPO's wife investing in the round.|
|6. Post-funding, will have 18 months of runway?||True: Burn was only $40k, at present they already have 18 months runway.|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||4||I'll give it to them, I have never heard of a smart paddleboard.|
|2. Timing?||3||Demand for outdoor sports and wellness good.|
|3. Monopoly?||1||Never heard of it before this investing, that said, very very early.|
|4. People?||2||Strong corporate experience but relatively less former entrepreneurial experience.|
|5. Distribution?||3||Paddleboards everywhere, check out by mobile app.|
|6. Durability?||4||If this really is the Citibike for paddleboard/outdoor water sports, for sure.|
|7. Secret?||1||Paddleboarding TAM is way larger and that the cruddy UI/UX of renting a paddleboard has needlessly stifled the market.|
What has to go right for the startup to return money on investment:
1. Secret has to be right; 2. No thieving of paddleboards; 3. Expand to other markets
What the Risks Are
1. Niche market with non-obvious expansion markets; 2. Infrequency of use, as opposed to a bicycle network; 3. Geographic expansion
Bonus Muhan's Notes
At the time of writing, it is snowing heavily in my hometown of Boston. How lovely it'd be to be renting a paddleboard and going for a swim at Virginia Key right now.
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 email@example.com and let me know.