Very early stage DNA and environment genetic sequencing company (baby 23andme) is raising money to make a more complete genetic sequencing service.
|1. Fundraising Target?||$1273722|
|2. Fundraised So Far?||$2000000|
|3. Pre-Money Valuation?||$34900000|
|4. Previous Year's Annual Revenue||$1436971|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-499746|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Los Angeles, CA|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Revenue grew by $200k in a year|
|5. Notable investors?||False: None recognized|
|6. Post-funding, will have 18 months of runway?||True: Just needs $750k|
|1. Engineering?||2||Seems like interesting technology, but decoding DNA in such a comprehensive way seems ambitious|
|2. Timing?||2||Technology becoming cheaper but I wonder about demand|
|3. Monopoly?||2||Grew to 2.7m in revenue in 2021, solid|
|4. People?||2||Team seems good|
|5. Distribution?||2||Online ordering and test results online|
|6. Durability?||2||If they can build it, the data is definitely defensible|
|7. Secret?||2||The demand for a 23andme informed by environmental development factors is large|
What has to go right for the startup to return money on investment:
1. Results have to be both specific and accurate; 2. Steal market share away from people doing DNA testing; 3. Start to give verifiably actionable preventative input
What the Risks Are
1. 23andme took 11 years to become worth 3.5bn, and that's with seed funding from the cofounder of Google; 2. How accurate can the environment get?; 3. How hard will it be for 23andme to copy the other features?
Bonus Muhan's Notes
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