In the months following Fleeting, a new trucker-on-demand marketplace has emerged with higher revenue, lower valuation, but also, smaller team and less institutional investors. Who will win the Uber for trucker driver war?
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$195715|
|3. Pre-Money Valuation?|$8000000|
|4. Previous Year's Annual Revenue |$461117|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-229101|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Norco, CA|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Impressive growth from 2018 to 2019|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||True: Needs $400k|
|1. Engineering?||2||Better than nothing, but curious to compare to Fleeting|
|2. Timing?||2||Is now the right time to start a truck driver labor aggregation platform?|
|3. Monopoly?||4||Incredible revenue of $2m ARR on $8m valuation|
|4. People?||2||Good founder though he doesn't appear to have much of a team|
|5. Distribution?||3||Definitely able to sell/build the two sided marketplace|
|6. Durability?||1||This is what I don't know. Need to ask about Fleeting.|
|7. Secret?||2||Relay will be able to build a faster two sided marketplace than Fleeting.|
What has to go right for the startup to return money on investment:
1. Build faster and get tight network effects; 2. Scale a team to get more aggressive customer acquisition; 3. Anticipate the coming trucking automation and figure out how to get ahead
What the Risks Are
1. Over half a year later than Fleeting, which has star studded investors; 2. Trucking automation; 3. Payroll expense for 2019 was only 133k which means two employees, so I wonder if they'll be able to compete against Fleeting's team size
Bonus Muhan's Notes
Very, very cool. $2m ARR to $8m valuation may be one of the strongest revenue businesses I've seen. Going to ask the founder some key questions.
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.
Other thoughts, questions, comments, or concerns? Write me at email@example.com and let me know.