Deal Abstract

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|

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: 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

Source

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

Updates

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?

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