Innovation in the cycling backpack/apparel market. Founder has bootstrapped a lifestyle brand and raising capital to grow.
|1. Fundraising Target? |$250000|
|2. Fundraised So Far?|$40537|
|3. Pre-Money Valuation?|$3500000|
|4. Previous Year's Annual Revenue |$217841|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-43009|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: New York, NY|
|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 decreased from 2018 to 2019|
|5. Notable investors?||False: Bootstrapped|
|6. Post-funding, will have 18 months of runway?||True: $43k annual burn, at 18 months would be ~$75k|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Unique bicycle backpack innovation, as a cyclist, I wonder how this plays with bikeshare|
|2. Timing?||1||Cycling should increase but uncertain if venture backable|
|3. Monopoly?||1||Don't know anyone with one of these bags|
|4. People?||3||Good people to be building this product|
|5. Distribution?||3||Seem to have really figured out distribution|
|6. Durability?||2||Lifestyle brand, fairly defensible|
|7. Secret?||2||The population of city commuting cyclist is about to boom in venture style|
What has to go right for the startup to return money on investment:
1. Partner with bikeshares at some point; 2. Enter into cyclist apparel and other accessories; 3. Keep innovating new products
What the Risks Are
1. Mass market vs high end product; 2. Revenue did not increase 2018 to 2019, concerned if this remains the case; 3. Cycling remains a niche market and doesn't go mainstream
Bonus Muhan's Notes
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 firstname.lastname@example.org and let me know.