Fulfillment services for small e-commerce stores.
|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)
|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)
|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
This is where I’ll post updates about the company. This way all my notes from offering to post-offering updates will be on one page.
Review these deal memos every time the startup raises a new round
Test if original thesis still applies
Notice trends in how you think
So, did I invest?Click here to find out.
Other thoughts, questions, comments, or concerns? Write me at firstname.lastname@example.org and let me know.