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
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.