Eco friendly fertilizer that takes shredded paper waste and turns it into fertilizer. Good revenue and backed by celebrity angels.
|1. Fundraising Target?||$297000|
|2. Fundraised So Far?||$218137|
|3. Pre-Money Valuation?||$7500000|
|4. Previous Year's Annual Revenue||$563821|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-879163|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Ambridge, PA|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Revenue grew from $408k to $503k|
|5. Notable investors?||True: Mark Cuban|
|6. Post-funding, will have 18 months of runway?||False: Only raised 4 months of runway|
|1. Engineering?||4||PittMoss fertilizer grew 50% more|
|2. Timing?||2||Not sure why this is the right timing for PittMoss|
|3. Monopoly?||2||Good revenue but have never heard of it|
|4. People?||3||Good team|
|5. Distribution?||2||Has to go through TrueValue and other garden care chains|
|6. Durability?||2||No network effects or moats to fertilizer|
|7. Secret?||3||Now is the time to create a eco friendly fertilizer and get venture sized returns|
What has to go right for the startup to return money on investment:
1. Get more distribution; 2. Brand effectively to farmers; 3. Identify whether B2B or B2C is a better business
What the Risks Are
1. Fertilizer is not venture backable; 2. Requires distribution partners; 3. 50% improvement not a 1000% improvement
Bonus Muhan's Notes
Beautiful and will have to try it out
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
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