Pharmaceutical company making delicious gummies to ease the taking of medicine.
|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)
|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|
|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
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.