Deal Abstract
Invest in Warehouse Republic: Warehousing and Logistics for E-Commerce Sellers | Wefunder
Warehousing and Logistics for E-Commerce Sellers
Fulfillment services for small e-commerce stores.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $250000 |
| 2. Fundraised So Far? | $114461 |
| 3. Pre-Money Valuation? | $25000000 |
| 4. Previous Year's Annual Revenue | $1100000 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-50000 |
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: Austin, TX |
| 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: Revenue has grown for six months |
| 5. Notable investors? | False: No one that I recognize |
| 6. Post-funding, will have 18 months of runway? | True: Profitable |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 3 | Good FBA solution for small bizes |
| 2. Timing? | 3 | More e-commerce are going to be solved |
| 3. Monopoly? | 2 | 30 customers, very small user base |
| 4. People? | 2 | Good entrepreneurial talent but no background in commercial real estate at scale |
| 5. Distribution? | 3 | Has waitlist, good distribution |
| 6. Durability? | 4 | Super durable, it's real estate |
| 7. Secret? | 2 | Growing commercial real estate biz for small biz fulfilled-by-Amazon is scalable |
What has to go right for the startup to return money on investment:
1. Acquire more real estate; 2. Onboard new customers quickly; 3. Keep retention high as team scales
What the Risks Are
1. Real estate is not venture backable; 2. Supply logistics easy to become commoditized; 3. Larger players eg Amazon have economies of scale
Bonus Muhan's Notes
Updates
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Review these deal memos every time the startup raises a new round
Test if original thesis still applies
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So, did I invest?
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