Deal Abstract
Airbnb for commercial real estate. Company is reimagining commercial leases for companies and helping them secure short term leases for pop-ups.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $1070000 |
| 2. Fundraised So Far? | $125925 |
| 3. Pre-Money Valuation? | $10000000 |
| 4. Previous Year's Annual Revenue | $393275 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-467310 |
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: 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? | True: Grew revenue by 10x |
| 5. Notable investors? | False: Bootstrapped so far, with $1m from founders |
| 6. Post-funding, will have 18 months of runway? | True: Needs roughly $700k |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 3 | As someone who has booked a commercial lease, going through a digital marketplace is significantly better |
| 2. Timing? | 3 | Good timing. Bricks still have value but no one wants to be locked in |
| 3. Monopoly? | 2 | Solid revenue |
| 4. People? | 3 | Cofounders have strong relationship, though I wonder if their skills are redundant |
| 5. Distribution? | 3 | Have strong real estate backgrounds and have been able to build both sides of the marketplace |
| 6. Durability? | 3 | Network of short term commercial real estate leasing |
| 7. Secret? | 3 | COVID has hurt physical retail enough that they'll allow a new model of leasing for short-term spaces to stop the hemoragging of money |
What has to go right for the startup to return money on investment:
1. The market for pop-up shops keeps growing; 2. Eventually this becomes the leasing platform for all commercial real estate (or at least, it becomes good enough for negotating normal leases as well; 3. Grow other platform benefits
What the Risks Are
1. The physical marketplace is valuable, but the software has no value add; 2. will the demand of revenue from pop up be venture backable; 3. Will the acquisition costs for landlords ever go down where people self list
Bonus Muhan's Notes
Very cool. Reminds me of a company Jason Calacanis invested in a company that lets you rent commercial retail storefronts by the hour for fun stuff like a birthday party. if anyone knows the company i'm talking about plz help me remember.
Updates
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So, did I invest?
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