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|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|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
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 firstname.lastname@example.org and let me know.