Deal Abstract
Invest in Seattle Gummy Company: Delivering functional healthcare with gummies instead of pills | Wefunder
Delivering functional healthcare with gummies instead of pills
Pharmaceutical company making delicious gummies to ease the taking of medicine.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $1500000 |
| 2. Fundraised So Far? | $750000 |
| 3. Pre-Money Valuation? | $55000000 |
| 4. Previous Year's Annual Revenue | $910000 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-844244 |
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: Seattle, WA |
| 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? | False: Can't tell, but revenue was $900k for 2021 |
| 5. Notable investors? | False: No one I recognize |
| 6. Post-funding, will have 18 months of runway? | True: Will have 18 months of runway |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 3 | Good patents and technology |
| 2. Timing? | 1 | Not sure why this is the right timing for a gummy pharmaceutical company |
| 3. Monopoly? | 2 | Good starting revenue but nothing jaw dropping |
| 4. People? | 2 | Team seems good |
| 5. Distribution? | 2 | Has good distribution in China, surprisingly, but traction will be an uphill battle in the States |
| 6. Durability? | 3 | IP advantages |
| 7. Secret? | 2 | Now is the time where medicine will go disproportionately gummy form |
What has to go right for the startup to return money on investment:
1. Generate more recurring revenue and show where the revenue streams are from; 2. Figure out what business this company is in, is it pharma, or licensing; 3. Demand for gummy based medicine has to surge
What the Risks Are
1. Nice to have not a must have; 2. Growth speed too slow; 3. Pharma is heavily regulated
Bonus Muhan's Notes
Cool company idea, though $56m is already a high valuation
Updates
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So, did I invest?
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