Topkey Deal Memo (Closing Date: 2021-05-31)

Muhan Zhang -

Deal Abstract

Invest in Topkey (YC W21): The one-stop-shop to monetize your investment property | Wefunder
The one-stop-shop to monetize your investment property
Topkey (YC W21) on Wefunder

Broker for matching investment property landlords with vetted property managers.

Financials (VRB)

Question Notes
1. Fundraising Target? $1070000
2. Fundraised So Far? $105261
3. Pre-Money Valuation? $15000000
4. Previous Year's Annual Revenue $0
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$0

The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)

Criteria Yes/No
1. A startup that is based in SV? True: San Francisco, CA
2. Has at least 2 founders? True: Two
3. Has product in the market? False: No revenue
4. 6 months of continuous user growth or 6 months of revenue? False: No revenue
5. Notable investors? True: Y-Combinator
6. Post-funding, will have 18 months of runway? False: No financials

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

Question Score Notes
1. Engineering? 2 Currently it's word of mouth
2. Timing? 2 More people buying investment properties
3. Monopoly? 1 No deep market penetration
4. People? 2 People are strong at Airbnb but vacation rentals != property management
5. Distribution? 1 No unfair advantage in distribution
6. Durability? 1 Where does recurring revenue come from this?
7. Secret? 1 Venture backable business can be built off of brokering property management and homeowners

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

1. Launch product; 2. get recurring revenue; 3. drive recurring value through platform

What the Risks Are

1. No venture returns here; 2. One time broker fee no recurring value; 3. Pre-product

Bonus Muhan's Notes

I know the space quite well and am eager to see how they progress.

Updates

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So, did I invest?

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Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.