Deal Abstract

New AI and better designed glucometer.

Financials (VRB)

Question	Notes
1. Fundraising Target?	$3000000
2. Fundraised So Far?	$1967638
3. Pre-Money Valuation?	$25000000
4. Previous Year's Annual Revenue	$28684
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)	~$-1651287

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?	False: Los Angeles, 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?	True: Though growth very modest
5. Notable investors?	False: No one I recognize
6. Post-funding, will have 18 months of runway?	True: But needs to raise full amount

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

Question	Score	Notes
1. Engineering?	2	Better engineering than normal blood lancet, but not 10x better imo
2. Timing?	1	No reason to believe now is right time for this business
3. Monopoly?	1	Super low revenue
4. People?	3	Def right people for this business
5. Distribution?	1	D2C and through retailers
6. Durability?	2	I guess the data is proprietary? But not much else
7. Secret?	1	Pops design innovation is going to tap into a venture sized market of diabetics

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

1. Sell more devices; 2. Monetize more than just hardware; 3. Innovate more heavily instead of marginal improvements

What the Risks Are

1. Good products don't make for good businesses; 2. Market too small; 3. Improvement is marginal

Bonus Muhan's Notes

I've used Keto Mojo to measure my blood and ketones before; not sure how this device is that much better. Not to mention, where's the recurring revenue?

Updates

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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So, did I invest?

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Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.