Deal Abstract

https://wefunder.com/regrained

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)

CheckYes/No
1. A startup that is based in SVYes: 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)

  1. The Engineering question:
    • Good, Maybe: Easily more than 10x versus not recycling anything, but not confident it’s 10x better than normal flour.
  2. The Timing question
    • Good: Right time for virtue brands.
  3. The monopoly question
    • Bad: Can’t see why other companies wouldn’t figure out a way to make other cooking ingredients from beer waste.
  4. The people question: 
    • Good: Team is good.
  5. The distribution question
    • Bad: Needs to get large shelf space for selling produce through commercial supermrkets.
  6. The durability question
    • Bad: Unconvinced other companies can’t product ‘patented’


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