Pranos.ai Deal Memo (Closing Date: 2021-05-31)
Deal Abstract
Invest in Pranos.ai (YC Alumni): We convert car windows into high-definition displays | Wefunder
We convert car windows into high-definition displays
Pre-product, pre-revenue startup that wants to turn car windows into programmable billboards.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $1070000 |
| 2. Fundraised So Far? | $105465 |
| 3. Pre-Money Valuation? | $9000000 |
| 4. Previous Year's Annual Revenue | $0 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$0 |
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
| Criteria | Yes/No |
|---|---|
| 1. A startup that is based in SV? | True: Palo Alto, CA |
| 2. Has at least 2 founders? | True: Two |
| 3. Has product in the market? | False: No product in market |
| 4. 6 months of continuous user growth or 6 months of revenue? | False: No revenue |
| 5. Notable investors? | False: Bootstrapped |
| 6. Post-funding, will have 18 months of runway? | False: Don't know burn |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 4 | Very cool tech |
| 2. Timing? | 2 | Not sure why this is the moment millions of drivers are going to turn their windows into billboards |
| 3. Monopoly? | 1 | No product in market |
| 4. People? | 2 | No background in automobile or digital advertising |
| 5. Distribution? | 1 | None sold and no brand |
| 6. Durability? | 2 | Compelling network |
| 7. Secret? | 1 | Massive amounts of car owners are going to buy their own billbooards, market themselves, and ultimately, monetize the product |
What has to go right for the startup to return money on investment:
1. Launch product; 2. Build ad network; 3. Include tracking for performance
What the Risks Are
1. Pre-product; 2. Pre-revenue; 3. Nickelytics
Bonus Muhan's Notes
Very cool product.
Updates
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