Star studded clientele for Ayurvedic spa is pivoting into mass consumer wellness products. Revenue grew modestly and needs to see hockey stick growth.
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$76418|
|3. Pre-Money Valuation?|$15000000|
|4. Previous Year's Annual Revenue |$1276151|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-928674|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Santa Monica, CA|
|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: Though revenue barely grew|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||False: Would need $1.5m and only raising a few hundred k's|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Ayurveda spa, applying traditional medicine|
|2. Timing?||2||People are into alternative medicine, but this is still a spa|
|3. Monopoly?||2||Popular among clients|
|4. People?||2||Good team not slam dunk|
|5. Distribution?||1||It's a spa, as far as I can tell|
|6. Durability?||3||Hard asset and location, with high cap ex to start business|
|7. Secret?||2||Building a luxury brand via a spa will then cause a beachhead into traditional medicine brand|
What has to go right for the startup to return money on investment:
1. Expand into products business; 2. Get more premium margins than companies like Aavrani, 3. Proprietary product and supply chain
What the Risks Are
1. Transferability of brand to d2c; 2. Is this business defensible; 3. High fixed costs
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 email@example.com and let me know.