Deal Abstract
Republic
Travel hacker is now taking his talents to designing an economy++ lie flat sleeping solution for air passengers.
Financials (VRB)
| Question | Notes |
|---|---|
| 1. Fundraising Target? | $1070000 |
| 2. Fundraised So Far? | $586814 |
| 3. Pre-Money Valuation? | $5000000 |
| 4. Previous Year's Annual Revenue | $0 |
| 5. Previous Year's Annual Net Income (+ Profitable, - Burning Cash) | ~$-517908 |
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: Puerto Rico! |
| 2. Has at least 2 founders? | False: Two |
| 3. Has product in the market? | False: All patents and provisions |
| 4. 6 months of continuous user growth or 6 months of revenue? | False: No revenue |
| 5. Notable investors? | False: No one that I recognize. |
| 6. Post-funding, will have 18 months of runway? | True: Likely to raise 18 months of runway. |
The 7 Thiel Questions (Every Time Man Profits, Don't Dismiss Serendipity)
| Question | Score | Notes |
|---|---|---|
| 1. Engineering? | 2 | Good engineering but not seeing how this doesn't take up double the size of economy. |
| 2. Timing? | 1 | No one is traveling with COVID. |
| 3. Monopoly? | 1 | No market share. |
| 4. People? | 1 | Passionate founder but no experience selling B2B to airlines (only tickets B2C) |
| 5. Distribution? | 1 | Selling hardware to airlines |
| 6. Durability? | 4 | I have to imagine once the seats are installed, one will not uninstall them lightly e.g. very durable. |
| 7. Secret? | 1 | Installing comfort seats for economy that take up double the space will make outsized returns for airlines. |
What has to go right for the startup to return money on investment:
1. Manufacture the product; 2. Generate revenue; 3. Make more money for airlines
What the Risks Are
1. Airlines don't want this because margins are already very thin; 2. Eco customers won't pay for this because the space between eco and business (eco++?) is thin e.g. disappearance of the middle class; 3. Manufacturing
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