Deal Abstract

https://republic.co/quantmre

Another player in the cash-for-home-equity (as opposed to cash-for-debt) play. Good valuation and thesis, but ambiguous differentiation. From what I can tell, company only generated $20k in revenue and has only raised 5 months of runway.

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The 6 Calacanis Characteristics (91 161 18)

Check	Yes/No
1. A startup that is based in SV	No: Newport Beach, CA
2. Has at least 2 founders	Yes: Yes
3. Has product in the market	Yes: Started accepting applications in October 2019
4. 6 months of continuous user growth or 6 months of revenue.	Yes: Rev for 2019 was $8k, has generated $20k in 2020.
5. Notable investors?	No
6. Post-funding, will have 18 months of runway	No: Burned $414k in 2019, only raised $151k.

The 7 Thiel Questions (ETMPDDS)

1. The Engineering question:
   • Bad: Not sure how this is 10x better than Hometap, Divvy, Unison, EasyKnock, Ribbon, or Figure. Competitor source here.
2. The Timing question: 
   • Good: Lots of competition means this is a thesis multiple people are hunting. Divvy in particular raised $43m from a16z and partners.
3. The monopoly question: 
   • Bad: Look at the existence of these other competitors and you can tell this is going to be a market with lots of players. That said, not horrible.
4. The people question: 
   • Fine: Team seems fine but nothing too stand out.
5. The distribution question: 
   • Fine: marketing to consumers but no advantage on distribution.
6. The durability question: 
   • Good: If business is built, definitely defensible with relationships to lenders and consumers.
7. *What is the hopeful secret?: 
   • Uncertain what the secret is compared to competitors.

What has to go right for the startup to return money on investment:

1. N/A

What the Risks Are

1. N/A

Muhan’s Bonus Notes

Financials (References)

• Current Fundraised: $151k
• Valuation: ~$8MM

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

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