Blockchain company seeking to eliminate fraud and redundancy in real estate title records. Seeking $750k at a valuation of $2.5MM. Seeking to become the one definitive source of truth for records, would ultimately require buy-in from title companies, municipalities, and “custom clients.”
- Very reasonable valuation to buy equity.
- Technology risk is fairly low, though sales and packaging of plans becomes key. Having gotten AIC, the Brazilian government, and $280k in revenue for 2018 with annual burn of $120k, is more than nothing.
- Although real estate is generally a sleepy update, the growing ambition and investment in real estate tech companies, demonstrates great pressure on incumbents to adapt-or-die to new efficiencies.
The 11 Calacanis Characteristics
Passed/failed on 5/11.
|1. Syndicate lead has >5 years investing and >1 unicorn investment||Fail|
|2. A startup that is based in SV||Fail: (Wilmington, DE)|
|3. Has at least 2 founders||Fail: though it does have a COO|
|4. Has product in the market||Pass|
|5. 6 months of continuous user growth or 6 months of revenue.||Pass: $290k for 2018, $0 for 2017|
|6. Notable investors?||Fail|
|7. Post-funding, will have 18 months of runway||Pass: Cash balance is $20k as of March, equivalent to 2 months of burn, so $750k would equal 75 months. That said, burn will go up as the company hires to accelerate growth.|
|8. Proprietary technology?||Fail: applying for patent, but not very useful in tech companies|
|9. Network effects?||Pass: this is 100% a network effect play|
|10. Economies of scale?||Pass|
|11. Great branding?||Fail: no UI/UX person on the team. That said, this is more of a B2B back-end sales product.|
The 7 Thiel Questions
- The Engineering question:
- Good: this company is not trying to “create” blockchain, but just trying to make a good interface for it. From the brief screenshot in the explainer video, seems like a basic, vanilla (not bad) CRUD (create,
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