|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$750|
|3. Pre-Money Valuation?|$20000000|
|4. Previous Year's Annual Revenue |$999699|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-182324|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Newark, DE|
|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: Grew from $689k to $999k, 2018 to 2019|
|5. Notable investors?||False: Bootstrapped!|
|6. Post-funding, will have 18 months of runway?||False: Not quite there yet|
|1. Engineering?||2||Based on screenshots looks pretty, not sure what pain it solves for|
|2. Timing?||1||Why is now the perfect time to build a B2B2C realty SaaS LinkedIn?|
|3. Monopoly?||1||No product in the market|
|4. People?||2||Good entrepreneurial talent but no one with social network business experience|
|5. Distribution?||3||Big advantage is the WPL plugin|
|6. Durability?||2||If they can build it and solve a real problem, defensible|
|7. Secret?||2||Building a beachhead via WP plugin is a great way to launch a social network for real estate|
What has to go right for the startup to return money on investment:
1. Transition to social network business model; 2. Deliver value that's good enough for subscription; 3. Enter the listing/other SaaS markets for real estate
What the Risks Are
1. Solution looking for a problem; 2. At best small business not venture backable; 3. Entrepreneurs will have to learn a completely different business.
Bonus Muhan's Notes
Very, very cool. A friend of mine from Venture for America is starting this company in PropTech: https://www.useelko.com/
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
So, did I invest?Click here to find out.
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