Solace is a direct-to-consumer direct cremation provider. Achieved $300k in revenue to date but also burned $426k last year. Raising money to enter the CA market. Needs to answer some existential questions about go-to-market state playbooks, unit economics, and how to transcend just being a broker of cremation services.
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- Digital Experiences Revitalizing stubborn industries that haven’t gone tech yet due is a solid hypothesis.
- Has the Potential to Become a Platform: Even though I don’t have the vision for it, I can imagine there being some type of platform play here. One of the commenters mentioned pet cremation, which is a good example of something that never occurred to me.
- Tackling a “Death-inite” Market: people have to die and it seems obvious that the experience of this transition will become more digital. The key question is whether Solace will come out on top as one of the big players?
The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||No: Portland OR, and Seattle WA|
|2. Has at least 2 founders||Yes: 3|
|3. Has product in the market||Yes|
|4. 6 months of continuous user growth or 6 months of revenue.||Yes: Revenue increased from $0 (2018) to $136k (2019.)|
|5. Notable investors?||No: Surprisingly.|
|6. Post-funding, will have 18 months of runway||No: 2019 burn was $426k representing ~$35k/mth, raised $557k which is 15 months.|
+32% revenue growth from Q1 2020 to Q2 2020 (unaudited)
Reduced CAC by over 26%, Q2 2020 vs. Q1 2020
Highest rated cremation service in Portland based on Google reviewsSolace Highlights
The 7 Thiel Questions (ETMPDDS)
- The Engineering question:
- Good: If Solace can build the UI/UX experience, this will definitely be better than the current funeral home experience.
- The Timing question:
- Good: If there&
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