Another proptech company trying to digitize the construction industry. This one has solid revenue on a fair valuation with a suitable CEO, but can it break through where others have not?
|1. Fundraising Target?||$1070000|
|2. Fundraised So Far?||$80700|
|3. Pre-Money Valuation?||$6500000|
|4. Previous Year's Annual Revenue||$57000|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-75878|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: New York City|
|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: Grew from 2019 to 2020|
|5. Notable investors?||True: Metaprop.vc, MIT sandbox fund|
|6. Post-funding, will have 18 months of runway?||True: Needs ~$100k and has already exceeded that comfortably|
|1. Engineering?||3||Not sure this is a 10x better solution, need to clarify|
|2. Timing?||2||Construction is super resistant to innovation|
|3. Monopoly?||2||Good revenue but hardly a monopoly|
|4. People?||4||Strong team, esp CEO with carpenter, civil engineer, and construction background|
|5. Distribution?||3||This will be the key question|
|6. Durability?||4||If it can be built, very durable|
|7. Secret?||2||TracFlo can incentivize adoption via unfair advantages CEO has in selling this|
What has to go right for the startup to return money on investment:
1. Become 'Construction Payment Platform Like venmo for construction', 2. Scale sales and continue to have key decision makers buy into value prop; 3. Overcome challenges that other proptech companies have had e.g. PlanGrid, DigiBuild, etc.
What the Risks Are
1. Adoption; 2. Market growth is not venture speed; 3. Differentiation
Bonus Muhan's Notes
$57k on $6.5mm valuation for a company is a solid ratio and team seems promising. Need to do more due diligence.
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