Deal Abstract
All organic oral and skincare company with millions in revenue, and super star influencers as advisors.
Financials (VRB)
|Question|Notes|
|---|---|---|
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$62425|
|3. Pre-Money Valuation?|$18000000|
|4. Previous Year's Annual Revenue |$3695154|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$3497|
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: Copley, OH |
| 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 dropped from 2018 to 2019, $4.6m to $3.7m |
| 5. Notable investors? | True: Daymond John and Dave Asprey |
| 6. Post-funding, will have 18 months of runway? | True: Profitable |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 2 | All natural ingredients... like charcoal? |
| 2. Timing? | 1 | Ecommerce and fine time for dental disruption |
| 3. Monopoly? | 2 | Unsure, but advisors are def health influencers |
| 4. People? | 2 | Team seems fine, esp being able to get advisors with star power |
| 5. Distribution? | 3 | ecommerce and influencer marketing |
| 6. Durability? | 2 | Seems fine |
| 7. Secret? | 2 | Using charcoal and alternative remedies for teeth whitening is a big venture backable business |
What has to go right for the startup to return money on investment:
1. Develop proprietary products; 2. Expand in offerings and targets; 3. Become a healthy conscious company in general
What the Risks Are
1. Market too small; 2. Nothing proprietary to defend; 3. Revenue decreased from 2018 to 2019
Bonus Muhan's Notes
Very cool to so Asprey and John on this.
Updates
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Review these deal memos every time the startup raises a new round
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So, did I invest?
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