Kibbo Deal Memo (Closing Date: 2021–05–01)

WeWork for van life has arrived. Former Intersection/Sidewalk Labs alum is starting a network of physical sites for van life participants to get all the benefits of fixed housing and supplies with all the mobility of van life.

Want to see the complete rich format deal memo? Read the original post at: https://muhanzhang.com/Kibbo

Deal Abstract

WeWork for van life has arrived. Former Intersection/Sidewalk Labs alum is starting a network of physical sites for van life participants to get all the benefits of fixed housing and supplies with all the mobility of van life.

Financials

1. Fundraising Target? $1070000
2. Fundraised So Far? $456428
3. Pre-Money Valuation? $15000000
4. Previous Year’s Annual Revenue: $0
5. Previous Year’s Annual Net Income (+ Profitable, — Burning Cash): $-62261

Six Calacanis Criteria

1. A startup that is based in SV? True, San Francisco, CA
2. Has at least 2 founders? False, Solo founder
3. Has product in the market? True, Revenue generating
4. 6 months of continuous user growth or 6 months of revenue? True, 500 paying member deposits, if the monthly cost is $2500, that’s $1m in rev?
5. Notable investors? True, Balaji Srinivasan, the former COO of Hustle (political texting technology),
6. Post-funding, will have 18 months of runway? True, Very little burn

Seven Thiel Tests

1. Engineering? 3, Definitely impressive, taking van life and giving it physical infrastructure via refueling sites
2. Timing? 3, Definitely the right time to start this business, so many people who plan on Vanning
3. Monopoly? 2, No revenue, good deposits, need to learn more
4. People? 2, Potentially right people, but need to dig into CEO and ask his ‘company’ Intersection sale to Alphabet
5. Distribution? 3, Definitely has access to desirable young professional taste maker market
6. Durability? 3, Especially with the sites and physical location, quite defensible
7. Secret? 3, The future of society is going to have an explosion of van life people who want community/reload sites

What Has to Go Right

1. Take product to market; 2. Keep operating costs low; 3. Scale like technology marketplace/not WeWork real estate company

What Could Go Wrong

1. Niche product/maybe Van life stays fringe and fancy for a long time; 2. Real estate/site management costs; 3. How does this business get to $250mm ARR?

Muhan’s Bonus Notes

Possibly one of the most ambitious businesses I’ve seen in a while

So, did I invest?

1. 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.
2. Read the rich format deal memo here: https://muhanzhang.com/Kibbo
3. 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 mail@muhanzhang.com and let me know.