Travel hacker is now taking his talents to designing an economy++ lie flat sleeping solution for air passengers.
|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)
|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.|
|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 difficulties
Bonus Muhan's Notes
Very curious to see what the future flights look like post-pandemic.
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
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