Deal Abstract

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

Two-sided marketplace for renting luxury classic cars. Founded in 2016, totally bootstrapped, Vinty caters primarily to B2B clients seeking classic cars for various professional events. The main use cases include: corporate event display and tours, advertising production, movie/TV production, wedding transportation, and leisure rentals.

Decision

Not yet.

Why Investing/Passing

  1. I love the idea of this business—bootstrapped, experienced entrepreneurs, solid valuation, tackling a niche that is B2B and defensible—but there are enough deterrents that I’d want to wait.
  2. Is the business a SaaS marketplace (coordination costs?) or vertically integrating to maintaining cars? The latter is expensive and I never see those costs coming down.
  3. At 27% and avg transaction of $925, the profit margins are pretty good at $250. However, how would you expand outside this category? Turo already does luxury car rentals. In addition, waiting until there are 2 months of runway to raise money raises some alarms about cashflow management.

The 6 Calacanis Characteristics (91 161 18)

Passed on 4/6.

CheckPass/Fail
1. A startup that is based in SVFail: (Oceanside, CA)
2. Has at least 2 founders Pass
3. Has product in the market Pass
4. 6 months of continuous user growth or 6 months of revenue.Pass
5. Notable investors?Fail
6. Post-funding, will have 18 months of runway Pass: burn rate is $4.3k/mth, at $250k raise this is 58 months.

Burn for 2018 was ($51,484). Monthly burn is therefore 4.3k/month. At the successful raise of a $250k raise, they have 58 months of burn. Running a very lean ship. 2017 was profitable, 2018 the G&A, COGS, and Sales all went up. Two cofounders are full time right now, so call that ~40k


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