Beverage company founded by MD, MBA, and Sommelier (in one person) is using plant compounds to make performance enhancement drinks. Has an interesting D2C subscription model.
|1. Fundraising Target? |$1070000|
|2. Fundraised So Far?|$111201|
|3. Pre-Money Valuation?|$10000000|
|4. Previous Year's Annual Revenue |$448058|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-2162110|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
|1. A startup that is based in SV?||False: New York, NY|
|2. Has at least 2 founders?||False: Two|
|3. Has product in the market?||True: Revenue generating|
|4. 6 months of continuous user growth or 6 months of revenue?||True: Revenue from 2018 to 2019 grew from $197k to $448k|
|5. Notable investors?||True: AJ Vaynerchuk and CircleUp|
|6. Post-funding, will have 18 months of runway?||False: Won't even have a month at this rate|
|1. Engineering?||3||Using plant chemicals and elements for improving performance, though nothing proprietary|
|2. Timing?||2||Especially drawn to the d2c model|
|3. Monopoly?||2||Good advisors and early revenue|
|4. People?||4||Doctor and MBA with beverage (sommelier) background, as well as team and advisors, very strong team|
|5. Distribution?||4||Love that they have 50% of customers on recurring subscription|
|6. Durability?||2||Basically the barriers to entry for a competitor are capital costs and supply chain|
|7. Secret?||2||Direct to consumer, plant compound focused beverages are going to take over the gatorade and other wellness drink choices|
What has to go right for the startup to return money on investment:
1. Product has to be 10x better in efficacy; 2. Support research to show why this stuff is good; 3. Develop proprietary logistics relationships like Trader Joe's
What the Risks Are
1. Risk of being a fad; 2. Just repackaging natural ingredients and nothing defensible; 3. This market isn't winner take all and will remain fragmented
Bonus Muhan's Notes
Very cool to see business model innovation in beverage
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