Innovative food company wants to take leftover grain from making beer and upcycling it into food ingredients. Business hinges on a critical patent-protected factor of being able to maintain a competitive business if vendors start chilling more for the used grain flour.
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The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||Yes: Berkeley, CA|
|2. Has at least 2 founders||Yes (2)|
|3. Has product in the market||Yes|
|4. 6 months of continuous user growth or 6 months of revenue.||Yes: 2018 revenue to 2019 revenue increased from $238k to $359k.|
|5. Notable investors?||Yes: Molson Coors (yes, like the beer,) and Barilla (yes, like the pasta.)|
|6. Post-funding, will have 18 months of runway||No: $1.664M burn for 2019 and only raising $535k, so 4 months of runway. Somewhat concerning. (Importantly, also allegedly raised $1.5MM in private money, so $535k is only public.)|
The 7 Thiel Questions (ETMPDDS)
- The Engineering question:
- Good, Maybe: Easily more than 10x versus not recycling anything, but not confident it’s 10x better than normal flour.
- The Timing question:
- Good: Right time for virtue brands.
- The monopoly question:
- Bad: Can’t see why other companies wouldn’t figure out a way to make other cooking ingredients from beer waste.
- The people question:
- Good: Team is good.
- The distribution question:
- Bad: Needs to get large shelf space for selling produce through commercial supermrkets.
- The durability question:
- Bad: Unconvinced other companies can’t product ‘patented’
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