STEM workshops lead by experts for students and schools.
|1. Fundraising Target?||$1000000|
|2. Fundraised So Far?||$185000|
|3. Pre-Money Valuation?||$8000000|
|4. Previous Year's Annual Revenue||$46480|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-261484|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Buffalo, NY|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||False: Declined in revenue from $123k to $46k|
|5. Notable investors?||True: LearnLaunch and Gaingels I recognize|
|6. Post-funding, will have 18 months of runway?||True: Needs $390k to have 18 months|
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
|1. Engineering?||2||Not innovating tremendously on the hardware set, but bringing in instructors|
|2. Timing?||2||Schools definitely want more STEM education now|
|3. Monopoly?||2||Revenue dropped significantly, not sure if market share is big|
|4. People?||3||Good team, definitely passionate group|
|5. Distribution?||2||Good job getting into 300 schools|
|6. Durability?||2||Besides relationships to schools, this business doesn't seem very defensible (see revenue drop)|
|7. Secret?||1||Schools are suddenly going to start demanding Thimble classes at a venture paced speed|
What has to go right for the startup to return money on investment:
1. Recover revenue from 2020 drop; 2. Expand revenue sources from the school zone; 3. Tap into further demand directly from the parents
What the Risks Are
From the reader who found this deal: 'Good stem kits could provide significant impact on society and simple, straightforward, quality educational content is an easy choice for teachers to select. Getting out there are getting their product in front of teachers may be a challenge to progress and scaling. School systems tend to be a bit siloed. Not sure whether educational kits can become a billion dollar company.'
Bonus Muhan's Notes
'Think this is a good idea and a reasonable valuation, not sure about billion dollar potential. But, if I squint really hard I can maybe see it... I will consider supporting because it's the change I want to see in the world. Stem can be incredible cool and interesting but low quality instruction and boring lessons can prevent kids from seeing the beauty. This has the potential to inspire the next generation of engineers.' Also compare to
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
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