Deal Abstract
Bitcoin powered real estate investment platform with also a rent to own feature. Product still in development, pre-revenue.
Financials (VRB)
|Question|Notes|
|---|---|---|
|1. Fundraising Target? |$535000|
|2. Fundraised So Far?|$516085|
|3. Pre-Money Valuation?|$7200000|
|4. Previous Year's Annual Revenue |$0|
|5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) |~$-243020.87|
The 6 Calacanis Characteristics ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
| Criteria | Yes/No |
|---|---|
| 1. A startup that is based in SV? | True: San Francisco, CA |
| 2. Has at least 2 founders? | False: Two |
| 3. Has product in the market? | False: Product still under development |
| 4. 6 months of continuous user growth or 6 months of revenue? | False: Pre-revenue |
| 5. Notable investors? | False: None that I see |
| 6. Post-funding, will have 18 months of runway? | True: If they can raise $450k they'll have 18 months of runway |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 1 | Blockchain powered REIT |
| 2. Timing? | 1 | Not sure why now is the right time for blockchain powered REIT |
| 3. Monopoly? | 1 | No product in market |
| 4. People? | 1 | CEO is fine but only one person |
| 5. Distribution? | 1 | No customers |
| 6. Durability? | 1 | Other REITs can come in and compete |
| 7. Secret? | 1 | Blockchain managed REITs will meaningfully save on investment costs and pass the savings to investors |
What has to go right for the startup to return money on investment:
1. Get proprietary dealflow for real estate network; 2. Technology has to work, potentially sell/license technology to others; 3. Go to market and monetize
What the Risks Are
1. Vision is wrong; 2. No innovation; 3. Burned $500k in development and no compelling revenue yet
Bonus Muhan's Notes
With my background in real estate, I'm struggling to see the innovation here.
Updates
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 mail@muhanzhang.com and let me know.