Deal Abstract

Invest in TransitNet: TransitNet brings title to crypto. | Wefunder
TransitNet brings title to crypto.

Former early PayPal employee and team are building title services for crypto holder institutions. Pre-product, pre-revenue.

Financials (VRB)

Question Notes
1. Fundraising Target? $1070000
2. Fundraised So Far? $662220
3. Pre-Money Valuation? $6000000
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? False: Manhattan Beach, CA
2. Has at least 2 founders? True: Two
3. Has product in the market? False: Only beta
4. 6 months of continuous user growth or 6 months of revenue? False: Def no revenue
5. Notable investors? True: Founders Fund & Peter Thiel?? Also 500 Startups
6. Post-funding, will have 18 months of runway? True: I mean, $0*18=$0

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

Question Score Notes
1. Engineering? 1 Product doesn't exist yet
2. Timing? 2 Timing could be right, as crypto as surged recently as this writing
3. Monopoly? 1 No revenue and only 4 firms using it
4. People? 3 People are strong, but notably, no founding CTO for a crypto based tech company
5. Distribution? 3 Via PayPal mafia connections, definitely can be introduced to right people at firms
6. Durability? 3 Probably pretty heavily regulated firm so legislation as a moat
7. Secret? 2 Investment funds that need to have crypto title services will need a tech startup like Transitnet to help them solve regulatory burden

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

1. Develop product; 2. Monetize product; 3. Scale product into compliance platform

What the Risks Are

1. Does the market exist; 2. Can the product solve it; 3. Is Peter Thiel really invested in this company with $$$ vis a vis Facebook?

Bonus Muhan's Notes

Very cool. May have to check out the

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