Deal Abstract

Blockchain commercial real estate marketplace

Real estate professionals building a tokenized platform to invest in commercial real estate. Pre-product, pre-revenue.

Financials (VRB)

Question Notes
1. Fundraising Target? $5000000
2. Fundraised So Far? $421012
3. Pre-Money Valuation? $55000000
4. Previous Year's Annual Revenue $0
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-261856

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: Wilmington, DE
2. Has at least 2 founders? True: Two
3. Has product in the market? False: No revenue for 2020
4. 6 months of continuous user growth or 6 months of revenue? False: Declined in 2020
5. Notable investors? False: None
6. Post-funding, will have 18 months of runway? True: Though burn was very high at $261k

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
1. Engineering? 2 Product doesn't exist yet though would theoretically be tokenized powered marketplace
2. Timing? 2 Lots of demands for alternative real estate
3. Monopoly? 1 No revenue
4. People? 2 Team seems good but not much outcomes from the business itself
5. Distribution? 2 No obvious access to customers
6. Durability? 3 Marketplaces have good network effects esp if you can guarantee access to dealflow
7. Secret? 2 Blockchain is the secret to building tokenized commercial real estate investing options

What has to go right for the startup to return money on investment:

1. Make money; 2. Proprietary dealflow; 3. Distribution channel

What the Risks Are

1. Crypto is a feature not a key differentiator; 2. Marketplaces are hard to build; 3. Dealflow gets commoditized with other platforms

Bonus Muhan's Notes

$55m valuation is pretty large for something that made no money in the last year.


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Review these deal memos every time the startup raises a new round

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