Wii Sports for the Oculus Rift has arrived in the form of VR cycling exercise.
|1. Fundraising Target?||$1070000|
|2. Fundraised So Far?||$746995|
|3. Pre-Money Valuation?||$24300000|
|4. Previous Year's Annual Revenue||$372537|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash)||~$-1706244|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: Somewhere in, MA|
|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: Rev increased from 2020 to 2021, but not by much|
|5. Notable investors?||False: No one I recognize|
|6. Post-funding, will have 18 months of runway?||False: Very high burn, would need to clear 2mm+|
|1. Engineering?||2||Fitness on Oculus|
|2. Timing?||2||Metaverse? But the Oculus has been out for a while|
|3. Monopoly?||3||Pretty strong adoption|
|4. People?||3||Team seems reasonably strong, but no famous investors I recognize|
|5. Distribution?||2||Distribution through Oculus? Is this a game studio?|
|6. Durability?||1||Not sure what's stopping another game studio from building Oculus Fitness|
|7. Secret?||1||VirZoom and the Oculus has the ability to do to fitness what Wii did with WiiSports|
What has to go right for the startup to return money on investment:
1. Sales of the Oculus have to go like the Wii; 2. VirZoom has to become a game studio not just a one off; 3. Design of the game has to be fun and remain sticky
What the Risks Are
1. People don't like to exercise; 2. Steam or Wii come in with their virtual reality exercise solution; 3. This company is not a game studio
Bonus Muhan's Notes
I'm surprised that Oculus didn't go the vertical integration route post Facebook and develop their own fitness games
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Review these deal memos every time the startup raises a new round
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