Deal Abstract

Invest in Village Juice Co.
Republic is a startup investing platform where you can invest as little as $10 in impactful startups

Plant based Chipotle/Sweetgreen/fast casual teams up with national provider Aramark to launch a new category of fast casual food.

Financials (VRB)

Question Notes
1. Fundraising Target? $250000
2. Fundraised So Far? $97570
3. Pre-Money Valuation? $10000000
4. Previous Year's Annual Revenue $2925603
5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) ~$-26351
Source

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: Winston-Salem, NC
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: 2.3m to 2.9m from 2018 to 2019
5. Notable investors? False: No names named
6. Post-funding, will have 18 months of runway? True: Year burn was only 26k
Source

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

Question Score Notes
1. Engineering? 2 10x better than the standard Aramark faire? For sure.
2. Timing? 2 People want this type of food for sure
3. Monopoly? 2 Uncertain if monopoly of plant forward eaters, but good revenue
4. People? 3 Right people, esp for being able to license to Aramark
5. Distribution? 3 See above
6. Durability? 2 Seems durable, esp since I don't see Aramark doing much innovation
7. Secret? 3 Fast casual chains going after the mainstream market missed the opportunity of Aramark/national niche franchises for a long tail business

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

1. Needs to scale more efficiently; 2. Sell more the franchise and idea instead of the small business; 3. Exploit the Aramark advantage

What the Risks Are

1. Food business not venture backable; 2. Distribution not as relevant as delivery makes cloud kitchens more competitive; 3. Ongoing costs of R&D


Want to read the whole post?


You don't have access to this post on Startup Investing for All by Muhan Zhang at the moment, but if you upgrade your account you'll be able to see the whole thing, including comments, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.