Bootstrapped $5m run rate alternative coffee company is raising money to give Four Sigmatic a run for their money.
|1. Fundraising Target?||$5000000|
|2. Fundraised So Far?||$2914528|
|3. Pre-Money Valuation?||$25000000|
|4. Previous Year's Annual Revenue||$2502241|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$32030|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Boulder, CO|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Doubled revenue from 2019 to 2020|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Profitable!|
|1. Engineering?||2||Better than coffee, allegedly|
|2. Timing?||2||Lots of demands for alternative healthy drinks now|
|3. Monopoly?||3||Solid revenue, but I wonder if this is a smaller version of Four Sigmatic coffee|
|4. People?||3||Really strong team with solid performance to boot|
|5. Distribution?||2||Not sure how they're distributing but they got to $5m run rate|
|6. Durability?||1||My main question, is this just another mushroom coffee business?|
|7. Secret?||2||Mushroom and adaptogenic beverages are enough to make this company the Pete's Coffee of mushroom coffee|
What has to go right for the startup to return money on investment:
1. Keep branding Rasa as a premium beverage; 2. Get into more distribution; 3. Develop further proprietary blends
What the Risks Are
1. There are other mushroom coffee companies with bigger brands and more dollars; 2. The market isn't growing that fast for this beverage; 3. This is a product not a business
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
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