Food and science executives have come up with a new way to test food for safety that can bring testing from days to hours. Pre-revenue and has a good deal of questions to answer in the quest to monetize.
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$364100|
|3. Pre-Money Valuation?|$28000000|
|4. Previous Year's Annual Revenue |$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-695911|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||True: Mountain View, CA|
|2. Has at least 2 founders?||True: Two|
|3. Has product in the market?||False: Only forecasts|
|4. 6 months of continuous user growth or 6 months of revenue?||False: No revenue yet|
|5. Notable investors?||False: Kept it vague|
|6. Post-funding, will have 18 months of runway?||True: Yes, just barely|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||3||Can bring testing of food safety from days to hours|
|2. Timing?||1||Not sure why food companies are incentivized to adopt this at this precise moment|
|3. Monopoly?||1||Nothing in the market yet|
|4. People?||2||Seem like fine executives, but not generating revenue and having no obvious wins somewhat concerning|
|5. Distribution?||2||Has to partner with big companies that will adopt innovation|
|6. Durability?||3||Very durable, assuming technology is good|
|7. Secret?||2||SnapDNA's new technology is 10x better, solves enough pain points, and will grow to a billion dollar business|
What has to go right for the startup to return money on investment:
1. Monetize and go to market; 2. Become a painkiller not a vitamin; 3. Nurture relationships with large companies to buy
What the Risks Are
1. Pre revenue; 2. Highly dependent on B2B adoption; 3. Speed of scale
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.