Zeehaus Deal Memo (Closing Date: 2021–02–26)

Bitcoin powered real estate investment platform with also a rent to own feature. Product still in development, pre-revenue.

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

Deal Abstract

Bitcoin powered real estate investment platform with also a rent to own feature. Product still in development, pre-revenue.

Financials

1. Fundraising Target? $535000
2. Fundraised So Far? $516085
3. Pre-Money Valuation? $7200000
4. Previous Year’s Annual Revenue: $0
5. Previous Year’s Annual Net Income (+ Profitable, — Burning Cash): $-243020.87

Six Calacanis Criteria

1. A startup that is based in SV? True, San Francisco, CA
2. Has at least 2 founders? False, Justin Lee is only one and owns 67% of company
3. Has product in the market? False, Product still under development
4. 6 months of continuous user growth or 6 months of revenue? False, Pre-revenue
5. Notable investors? False, None that I see
6. Post-funding, will have 18 months of runway? True, If they can raise $450k they’ll have 18 months of runway

Seven Thiel Tests

1. Engineering? 1, Blockchain powered REIT
2. Timing? 1, Not sure why now is the right time for blockchain powered REIT
3. Monopoly? 1, No product in market
4. People? 1, CEO is fine but only one person
5. Distribution? 1, No customers
6. Durability? 1, Other REITs can come in and compete
7. Secret? 1, Blockchain managed REITs will meaningfully save on investment costs and pass the savings to investors

What Has to Go Right

1. Get proprietary dealflow for real estate network; 2. Technology has to work, potentially sell/license technology to others; 3. Go to market and monetize

What Could Go Wrong

1. Vision is wrong; 2. No innovation; 3. Burned $500k in development and no compelling revenue yet

Muhan’s Bonus Notes

With my background in real estate, I’m struggling to see the innovation here.

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/Zeehaus
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