Deal Abstract

AI SaaS company wants to help you find free parking by combining data from cars, phones, satellites, and smart city sensors.

Financials (VRB)

Question	Notes
1. Fundraising Target?	$5000000
2. Fundraised So Far?	$269324
3. Pre-Money Valuation?	$80000000
4. Previous Year's Annual Revenue	$521796
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)	~$-52981

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?	True: San Francisco, CA
2. Has at least 2 founders?	False: Two
3. Has product in the market?	True: Revenue generating
4. 6 months of continuous user growth or 6 months of revenue?	False: Revenue declined from 2019 to 2020
5. Notable investors?	False: None were named
6. Post-funding, will have 18 months of runway?	True: Needs around 900k for 1.5 years of runway

Source

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

Question	Score	Notes
1. Engineering?	2	Interesting that it integrates data from cars, phones, satellites, and smart city sensors
2. Timing?	2	Not sure why this is a great time to build this business, with rideshare and future self driving cars
3. Monopoly?	2	Revenue declined so declining market share
4. People?	2	Team seems like it has solid technical chops, but the monetization plan still looks confusing to me
5. Distribution?	1	I went on the website to figure out this distribution, I think it has to go through the car or mobile app?
6. Durability?	2	Compiling all the sensor information to discern parking is pretty interesting
7. Secret?	1	The types of people who drive around searching for free parking are the types of people who will pay for an app that helps them find parking.

What has to go right for the startup to return money on investment:

1. Revenue has to go higher; 2. Tactical partnerships; 3. Probably get bought out by some autonomous driving company in the future that needs cars to self park

What the Risks Are

1. Feature not a company; 2. Declining revenue from 2019 to 2020; 3. Investing in the 'cigar butt' as Buffett so fondly describes

Bonus Muhan's Notes

Parking truly is one of most banal activities

Updates

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Review these deal memos every time the startup raises a new round

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