Edible Garden Deal Memo (Closing Date: 2021–05–01)

Two cofounders bought a struggling farm business and are now revamping it. Strange inconsistent financials that I need clarity on.

Company Logo
Company Logo

Want to see the complete rich format deal memo? Read the original post at:

Deal Abstract

Two cofounders bought a struggling farm business and are now revamping it. Strange inconsistent financials that I need clarity on.

Financials

  1. Fundraising Target? $1070000
  2. Fundraised So Far? $376416
  3. Pre-Money Valuation? $18500000
  4. Previous Year’s Annual Revenue: $0
  5. Previous Year’s Annual Net Income (+ Profitable, — Burning Cash): $0

Six Calacanis Criteria

  1. A startup that is based in SV? False, Belvidere, NJ
  2. Has at least 2 founders? True, Two cofounders
  3. Has product in the market? False, No revenue
  4. 6 months of continuous user growth or 6 months of revenue? False, See above
  5. Notable investors? False, Bootstrapped
  6. Post-funding, will have 18 months of runway? True, No burn because no operations

Seven Thiel Tests

  1. Engineering? 1, Not sure where the engineering difference is
  2. Timing? 1, Why is now the opportune time to start this business?
  3. Monopoly? 1, No revenue
  4. People? 2, Cofounders have worked before but no prior obvious success
  5. Distribution? 2, Seems to have good distribution
  6. Durability? 2, High capex to break into business but otherwise a commodity
  7. Secret? 1, Now is the time to start a technology enabled unicorn business in growing produce?

What Has to Go Right

  1. Generate revenue; 2. Build out distribution that is directly with consumers; 3. Enter other higher margin businesses

What Could Go Wrong

  1. Financial structure; 2. Commodity no innovation; 3. Not venture backable

Muhan’s Bonus Notes

Lettuce learn more :)

Investment Decision Teaser
Investment Decision Teaser

So, did I invest?

  1. Subscribe to to see my final investment decisions, keep track of my portfolio, and receive ongoing updates on my journey to investing in 50 startups as an unaccredited investor.
  2. Read the rich format deal memo here:
  3. Want me to cover your startup? Submit your ‘Request for Startup’ (RFS) submission here:

Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.

First employee and former COO at Yang2020. I write about startup investing and how to build the future. Subscribe at

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store