Deal Abstract

Invest in Stream Dx
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Helping doctors collect urine flow data at home to improve healthcare outcomes

Financials (VRB)

Question Notes
1. Fundraising Target? $1000000
2. Fundraised So Far? $60555
3. Pre-Money Valuation? $6500000
4. Previous Year's Annual Revenue $90000
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$482897
Source

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: Salt Lake City, UT
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: Grew revenue from 2019 to 2020 by 4x
5. Notable investors? False: Mainly NIH
6. Post-funding, will have 18 months of runway? True: Yeah, $750k will get 18 months of runway

The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)

Question Score Notes
1. Engineering? 3 Definitely a solid innovation
2. Timing? 1 Not sure why this problem is set to balloon at this particular time in place
3. Monopoly? 2 Good monopoly over small market
4. People? 2 People seem fine but no one with stunning medical device background
5. Distribution? 2 Needs distribution and demands from doctor
6. Durability? 2 StreamDx is essentially trying to be the Quest diagnostics of peeing tests
7. Secret? 1 This moment in time is where people will become more sensitive to LUTS and get prescribed these devices at scale to treat their condition

What has to go right for the startup to return money on investment:

1. People become more sensitive to LUTS; 2. StreamDX builds this into a medical health platform; 3. Physicians don't mind paying for these tests

What the Risks Are

1. Market is not growing fast; 2. Marginal benefit of at home testing vs clinic testing ambiguous; 3. Recurring revenue comes from delivery of more of these tests

Bonus Muhan's Notes

Really cool innovation, but will need to reflect on whether it's venture backable

Updates

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Review these deal memos every time the startup raises a new round

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