Deal Abstract

Invest in Surya Spa
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Star studded clientele for Ayurvedic spa is pivoting into mass consumer wellness products. Revenue grew modestly and needs to see hockey stick growth.

Financials (VRB)

Question Notes
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)

Criteria Yes/No
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)

Question Score Notes
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

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