Deal Abstract
Another Janover Ventures, but with significantly better fundamentals. But is it venture backable?
Muhan Zhang
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $1700000 |
| 2. Fundraised So Far? | $1551192 |
| 3. Pre-Money Valuation? | $13800000 |
| 4. Previous Year's Annual Revenue | $1219316 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$159011 |
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
| Criteria | Yes/No |
|---|---|
| 1. A startup that is based in SV? | False: Newark, NJ |
| 2. Has at least 2 founders? | True: Two |
| 3. Has product in the market? | True: Revenue generating |
| 4. 6 months of continuous user growth or 6 months of revenue? | True: $892k to $1219k from 2019 to 2020 |
| 5. Notable investors? | True: Backed by Techstars, Newark Venture Partners, and real estate industry executives |
| 6. Post-funding, will have 18 months of runway? | True: Appears to be profitable |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 3 | Real techies coming in to solve this problem |
| 2. Timing? | 3 | OwnUp for commercial real estate |
| 3. Monopoly? | 3 | Really strong revenue numbers |
| 4. People? | 4 | Strong techie team |
| 5. Distribution? | 2 | No crazy unfair advantage, but digital native marketing strategy |
| 6. Durability? | 3 | Big data play |
| 7. Secret? | 2 | Commercial mortgage and financing is going to go digital transformation at a venture paced speed |
What has to go right for the startup to return money on investment:
1. More real estate professionals have to go digital native; 2. Find the power users and exploit those who need constant new financing; 3. Monetize a pricing engine
What the Risks Are
1. Commercial real estate financing to digital transformation is not venture back-able development, 2. New technology for mortgage quote a nice feature but not a painkiller product; 3. Some mortgage brokers get their act together or get acquired by another fintech company and digitize their rolodexes (though I confess this last one is a stretch to me.)
Bonus Muhan's Notes
So cool. Need to ask against Janover Ventures.
Updates
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So, did I invest?
Click here to find out.Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.