Engineer is building Jarvis for real-life engineers. Pre-product, pre-revenue, but with growth opportunity as with all startups.
- Fundraising Target? $1070000
- Fundraised So Far? $420494.84
- Pre-Money Valuation? $5984000
- Previous Year’s Annual Revenue: $0
- Previous Year’s Annual Net Income (+ Profitable, — Burning Cash): $-32500
Six Calacanis Criteria
- A startup that is based in SV? False, Los Angeles, CA
- Has at least 2 founders? True, Two
- Has product in the market? False, Raising to go to market
- 6 months of continuous user growth or 6 months of revenue? False, Not in market
- Notable investors? False, No prior investors
- Post-funding, will have 18 months of runway? True, No burn
Seven Thiel Tests
- Engineering? 2, Better but is it 10x better?
- Timing? 3, Technology becoming more complex, if it works this timing is good
- Monopoly? 1, Few customers, only 4 in beta
- People? 2, Seems like team is well, but the fact that financials are from 2017–2018 not promising
- Distribution? 2, How to distribute to these SMBs they’re talking about?
- Durability? 3, If they can build it, definitely stable
- Secret? 2, GURU can provide a smooth enough interface to commoditize sophisticated hardware computing power for SMBs
What Has to Go Right
- Launch a product publicly; 2. Monetize; 3. Actually solve real problem
What Could Go Wrong
- Lofty ambition, no product to demonstrate proof; 2. Complexity is very hard to solve, see Bubble and the no-code movement; 3. Business model risk, what would be the willingness to pay for this, even when the product is still not totally polished yet?
Muhan’s Bonus Notes
Real life Jarvis!
So, did I invest?
- Subscribe to https://muhanzhang.com/ 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.
- Read the rich format deal memo here: https://muhanzhang.com/GURU
- Want me to cover your startup? Submit your ‘Request for Startup’ (RFS) submission here: https://airtable.com/shrzNK8tguH8qEUF6
Other thoughts, questions, comments, or concerns? Write me at firstname.lastname@example.org and let me know.