MyndVR Deal Memo (Closing Date: 2021–04–21)
VR company is building hardware/software/production house for VR experiences for the elderly. Strong recurring revenue for selling to elder care communities.
2 min readFeb 25, 2021
Want to see the complete rich format deal memo? Read the original post at: https://muhanzhang.com/MyndVR
Deal Abstract
VR company is building hardware/software/production house for VR experiences for the elderly. Strong recurring revenue for selling to elder care communities.
Financials
- Fundraising Target? $1070000
- Fundraised So Far? $73129
- Pre-Money Valuation? $8000000
- Previous Year’s Annual Revenue: $139781
- Previous Year’s Annual Net Income (+ Profitable, — Burning Cash): $-703321
Six Calacanis Criteria
- A startup that is based in SV? False, Flower Mound, TX
- Has at least 2 founders? True, Two cofounders
- Has product in the market? True, Revenue generating
- 6 months of continuous user growth or 6 months of revenue? True, Rev grew from 59 to 139k
- Notable investors? True, Capital Factory def a regional player, HTC is a faded glory kind of deal (HTC Vive?)
- Post-funding, will have 18 months of runway? True, Just at 18 months if $1m raised
Seven Thiel Tests
- Engineering? 2, Company that is allegedly developing hardware and software, but why this company over Oculus?
- Timing? 3, Hard to get better timing than COVID
- Monopoly? 3, Good traction
- People? 2, Company has solid media backgrounds but no hardware chops
- Distribution? 3, Selling to retirement homes the real gem here
- Durability? 3, Focusing on building a brand for
- Secret? 3, Old people, with money, in large quantities, are going to get their kicks through virtual reality
What Has to Go Right
- Old people have to not be luddites; 2. Get really good at both hardware and software, and figure out what the core business is here; 3. Don’t incur high servicing costs
What Could Go Wrong
- Does the market want this? What’s prevented Vive/Oculus/Google Cardboard to take this to market? 2. Attacking media, software, and hardware could mean lack of focus; 3. Market is not growing fast enough
Muhan’s Bonus Notes
Very, very cool. Hope they can crack this market.
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/MyndVR
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