'Earth conscious investment Product that has traction, patents, healthy growth of revenue and profitable soon. Contracts with multiple outlets already in place. Can't find a reason not to invest.'
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$245906|
|3. Pre-Money Valuation?|$13000000|
|4. Previous Year's Annual Revenue |$6575838|
|5. Previous Year's Annual Burn |~$-430928|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Brooklyn, NY|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True:|
|4. 6 months of continuous user growth or 6 months of revenue?||True: 2018 rev was $2.8m and 2019 rev was $6.6m|
|5. Notable investors?||False: The Seed and WeWork aren't that notable as venture investors.|
|6. Post-funding, will have 18 months of runway?||False: At present would need ~$750k for 18 months and has only raised $200k.|
|1. Engineering?||2||Better than non-recyclables, but the folding aspect doesn't seem like a 10x improvement.|
|2. Timing?||2||Good time to make eco-conscious cups, but not sure why a better timing wasn't either 5 years ago or 5 years from now.|
|3. Monopoly?||2||Don't know anyone who has one, that said, good numbers.|
|4. People?||2||Team seems to have some good D2C brands, but unsure what CEO's previous experience was.|
|5. Distribution?||2||Good, e-commerce and teaming up with Starbucks and other partners.|
|6. Durability?||1||This portion I'm the least certain about. Patents are nice, but is this really defensible?|
|7. Secret?||2||Collapsible reusable thermos' and cups are an enormous untapped market that other cup/bottle makers haven't figured out yet as an enormous market.|
What has to go right for the startup to return money on investment:
1. Grow efficiently; 2. Continue to innovate on new high margin products; 3. Become a lifestyle brand that arbitrages a network of high expertise in plastic manufacturing to all forms of CPG
What the Risks Are
1. Market size and growth; 2. Cost and replicability of new product R&D; 3. Large incumbents catching on and becoming competitors if the market proved to be sizable enough.
Bonus Muhan's Notes
The folding function is indeed very cool! I wonder how it's washed?
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.