Deal Abstract
Rollo Motion
Tech-driven delivery platform with autonomous and hybrid operation
Bill Gross, founder of IdeaLab, has teamed up with a CEO to found an autonomous scooter for ride and delivery.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $5000000 |
| 2. Fundraised So Far? | $158384 |
| 3. Pre-Money Valuation? | $20164146 |
| 4. Previous Year's Annual Revenue | $24026 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-1750806 |
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: Pasadena, CA |
| 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: But very modest revenue |
| 5. Notable investors? | False: No one I recognize |
| 6. Post-funding, will have 18 months of runway? | True: If they can raise the money |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 3 | Engineering first product |
| 2. Timing? | 3 | Good time for autonomous vehicles |
| 3. Monopoly? | 1 | Very modest revenue |
| 4. People? | 3 | Good CEO and Chairman |
| 5. Distribution? | 1 | D2C? |
| 6. Durability? | 3 | Building an autonomous scooter requires lots of data |
| 7. Secret? | 2 | Selling autonomous scooters and delivery scooters is an underpriced venture size market |
What has to go right for the startup to return money on investment:
1. Scale revenue; 2. Identify whether B2B or B2C is real business; 3. Develop product cost efficiently
What the Risks Are
1. Overpriced; 2. Hardware is very capital intensive; 3. Unclear what the market is
Bonus Muhan's Notes
Updates
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Review these deal memos every time the startup raises a new round
Test if original thesis still applies
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So, did I invest?
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