Deal Abstract

https://www.seedinvest.com/ubitquity/seed

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.”

Decision

Yes. (Hypothetically.)

Why Investing/Passing

  1. Very reasonable valuation to buy equity.
  2. 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.
  3. 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.

CheckPass/Fail
1. Syndicate lead has >5 years investing and >1 unicorn investmentFail
2. A startup that is based in SVFail: (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


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