Deal Abstract

https://www.seedinvest.com/virtuix/series.a.2

Hardware/game studio combo wants to become the Peloton/Ready Player One for real. Already has shipped over 4000 units to 500 venues in 45 countries. Doubled revenues in the last year, with over $10m worth of product sold.

The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)

Criteria Yes/No
1. A startup that is based in SV? No: Austin, TX
2. Has at least 2 founders? No: Looks like just the CEO has 5.5m shares on teh cap table
3. Has product in the market? Yes
4. 6 months of continuous user growth or 6 months of revenue? Yes: $3.8m vs. $1.6m
5. Notable investors? Yes: Mark Cuban, Capital Factory (same as Hidrent,) with twenty other VC's. Notably, no big VC's that I know.
6. Post-funding, will have 18 months of runway? Yes:Targeting $10mm, $3.5mm burn in 2020 (incomplete year,) which is 34 months of runway.
Virtuix Cap Table
Virtuix Consolidated Financial Statements
Virtuix Consolidated Financial Statements

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

Question Score Notes
1. Engineering? 5 Seems phenomenal
2. Timing? 5 Lots of people staying in doors for COVID
3. Monopoly? 5 Not sure I know any other product in the immersive home VR space
4. People? 3 Good that CEO isn't just a product guy, but neither leadership has experience in selling consumer electronics, game studio development, and not too much said about other teammates.
5. Distribution? 4 1 million email list! Direct to consumer woohoo.
6. Durability? 2 Thinking of the other VR headsets I know, e.g. Facebook Oculus, Microsoft HoloLens, etc. Uncertain which part of this company


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