Warehouse Republic Deal Memo (Closing Date: 2021-05-31)

Muhan Zhang -

Deal Abstract

Invest in Warehouse Republic: Warehousing and Logistics for E-Commerce Sellers | Wefunder
Warehousing and Logistics for E-Commerce Sellers
Warehouse Republic on Wefunder

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
Source

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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