Plant based Chipotle/Sweetgreen/fast casual teams up with national provider Aramark to launch a new category of fast casual food.
|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|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|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|
|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 high to make new on brand products
Bonus Muhan's Notes
Very cool! I'll be google around my neighborhood to see if I can try it soon.
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