AI company wants to help you see what a piece of clothing looks like on you before you buy. Pretty ambitious stuff, indie version of Amazon Look.
|1. Fundraising Target?||$1500000|
|2. Fundraised So Far?||$215300|
|3. Pre-Money Valuation?||$15000000|
|4. Previous Year's Annual Revenue||$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-1387330|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Los Angeles, CA|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||True: Deployed at a top-10 (USA) retailer's select site (Target Corp)|
|4. 6 months of continuous user growth or 6 months of revenue?||False: No revenue|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||False: Would need 1.95m of burn|
|1. Engineering?||4||Seriously impressive engineering between body scan, CAD to scan, fitting and draping, and visualization of fit|
|2. Timing?||3||Very good time to be optimizing e-commerce given COVID|
|3. Monopoly?||1||Not many people using nor revenue|
|4. People?||2||Strong team of nerds but don't see them with retail/sales experience|
|5. Distribution?||2||This is my biggest concern, getting people to adopt this product requires B2B connections. That said, they already piloted with Target, which helps.|
|6. Durability?||5||If this company can get adoption, as the model gets more data about fit, CAD, and return rates, it will only get better.|
|7. Secret?||3||AI visualization of clothing fits will help customers buy clothing more confidently and scalably in the world of e-commerce|
What has to go right for the startup to return money on investment:
1. Monetize; 2. Algorithm gets consistently better; 3. Balance helping customers keep data while aggregating intelligence from data
What the Risks Are
1. Business model; 2. Feature not a business; 3. Distribution risk selling to large apparel companies
Bonus Muhan's Notes
Need to learn more about business model
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