Community VC, Community DD weekly newsletter 23/2/24

Community VC, Community DD weekly newsletter 23/2/24

Happy Friday everyone and welcome back to the weekly newsletter??

If you missed last week’s update and need a refresher - here’s the link.?

???First off, a big congratulations and pat on the back to those of you that participated in the Xailient Community Due Diligence process. 

It’s my pleasure to let you know that you’ve been allocated 1/6th of 5% of the overall carry on this deal.?

Today’s value of the reward is c.$417 to each of you and if Xailient does what we believe they will in terms of growth it might be worth c.$6750        

Jess Pattison Carl "CC" Bischoff Lauren Jarrett Gavin Preston Jordan Duffy Steve Allan, CFA


This week’s Community DD Newsletter setup:

TL:DR 1) Vitadrops’ Expert interviews with Alex Concannon (head of Growth Marketing Employment Hero) and Wade Tiller (From Hard Fizz) ??

2) Astrix Expert interviews with Nick Lindsay (ex Space-X and Gilmour Space) & Christian Thaler-Wolski (HEO Robotics (the darling of Australian Spacetech) ???

3) Safer(choice) - TL:DR Video (And an announcement of our DD Lead Rob Godwin (Ex Australasian Director & Head of Commercial Operations at Lovehoney) ???

4) Foodini ?- TL:DR Video (With a brand new deck and announcement ready for next week) ???

5) The weekly pipeline updates & insights including a raft of brand-new decks that we really like the look of including a number of insane insights




?? As always towards the bottom of the note, you'll find our key links, who we are, and how we operate.

We believe we can democratise access to Venture Capital by enabling retail (everyday folks) alongside wholesale (High net worth >$2.5m in net assets) with the ability to participate and support the due diligence process. Whether that be offering expertise, insight or introductions and promotion. In return, claim a share of Carry and Fees earned enabling their ability to participate in Venture as an asset class.

This year our goal is to complete 20 Community Due Diligence deals with 100+ experts, 400+ talented people and to share with the community of over 7000.




What is Community VC Due Diligence?

We carefully select pitch decks from companies that approach us, choosing the most promising ones for our community DD. Our analysis covers a company's product, business model, and potential for future growth. This is done with input from experts, founders, and our community. We aim to provide a detailed understanding of each investment opportunity, laying a solid groundwork for the community to shortcut their due diligence process.

At the end of this process, we compile our findings into a detailed memo, which is accompanied by our due diligence cheat sheet. This cheat sheet provides detailed metrics and analysis, serving as a primary resource for key information on the business model, funding history, and past performance. Then anyone who participates get’s their share of the reward!

Keen to get involved? Register your interest and let us know what kind of companies and skills you have here!



?? Vitadrop expert interviews:

We had the absolute pleasure of discussing the missing gaps in our DD stackrank with two heavy hitting experts in growth/marketing and brand/D2C products this week.

Vitadrop Expert Interview (LINK)


If you don’t have the time right now, here’s a couple of the key takeaways we thought would be of interest:

  1. “The younger generation is promiscuous so they try different things which means they could also try yours but staying ahead of the trends is very difficult” – Wade
  2. “With brand building you either go down the communications route or the grassroots route. Liquid Death had capital so they went for the communications route. With less capital but more scrappiness you go for the community grassroots route” – Alex
  3. “Reading through the opportunities, going to a place that has less competitors is probably the best bet. e.g. Baby formula exporting to Asia with the TGA credentials etc. premium, functional, Australia” –?Alex
  4. “There is a large enough market in AU for 20m” –?Wade

We’ve also completed the Astrix stackrank internally and with the founders which you can access here as a subscriber.? This is also where you can access their pitch deck.

Next week we are setting up the community interview to fill in any last gaps? in our stackrank and conviction around this deal.



?? Astrix expert interviews:

Elliot and I both agree that the conversation and insights from this expert session were the most insightful of any sessions to date. The depth and complexity to this space (pun intended) is wild.

Astrix Expert Interview? (LINK)


If you don’t have the time right now, here’s a couple of the key takeaways we thought would be of interest:

  1. “The problem with manufacturing with iso 9001 or 'as' certifications - You need to add other support staff for quality assurance, inspectors etc. SpaceX has 400 staff just for the Dragon project” - Nick
  2. “The sales cycles of sales in space are super long -? 2+ years to source and get ready with your product and then it's 2+ years of actually being in space” - Nick
  3. What are the exit scenarios? “Scenario 1: Potentially a fast exit - build up IOD and then sell fast before getting into heavy lift of having to build production site OR Scenario 2: Build big - very capital intensive, long sales cycles, lots of government funding needed” –?CTW
  4. “Three missions with quantitative data would be required to meet or exceed the longevity. It's all about proving the Astrix can predict their quality over time in order to win large contracts” –?Nick
  5. “The USP is offering: equivalent power with equivalent confidence with lower mass - mass is money i.e the customer can thus add more fuel for longer missions or additional sensors etc” - Nick

We’ve also completed the Astrix stackrank internally and with the founders which you can access here as a subscriber. This is also where you can access their pitch deck.

Next week we are setting up the community interview to fill in any last gaps in our stackrank and conviction around this deal.



?? Introducing Saferchoice (Choice):

Saferchoice TL:DR VIDEO HERE


We’re (still)? looking for community contributors to help with this DD series that have any experience or expertise in the following:

  1. Scaling, growing, managing, developing or supporting a marketplace business
  2. Being a customer or service provider of any type of intimacy service
  3. Doing business with global payment providers
  4. Building or managing a business in a highly regulated environment
  5. Previous experience raising capital or investing in European startups
  6. Sextech business development and marketing
  7. Highly funded hyper-growth startup experience

If you feel like you could add value, please add your name to this list and we’ll be in touch. Further info about the company and remuneration below!


?? Saferchoice

What is it: The marketplace for paid companionship and intimacy. The global standard for paid companionship and intimacy (safe booking and payment system)?

Space/type: B2C

Business model: Marketplace

Why could this one of the 10 best opportunities you'll see this year: This is a rare opportunity and combination of founding team, broken and heavily underserved market, large problem and good timing (on the earlier side but enough time to build product market fit and become large as first mover).

The bet: It won't get shut down by regulatory bodies and will reach $100m ARR only in the seven core countries

The Wow: The team and the obviousness of the market

What does it look like when they turn up next round successfully: Prove product market fit in Switzerland during 2024 and then raise again (without the pressure of having to) in 2025 for international expansion. The main objective is proving product-market fit in Switzerland in 2024 to have a blueprint for international expansion. . $85-100k MRR

Traction: Just hit their 1000th verified signup and hitting 2500 website views per month


?? Quick links:

Link to our stackrank with further info (For Airtable subscribers only)

Direct link to put your name down to participate in the Community DD experience


?? Available Remuneration:?

1/4 - To due diligence participants of 3% fee on up to $250k + ? on 20% Carry

?? The start and end dates:

16/5 - 12/3

?? Due Diligence leads: @TBA & Jock Fairweather ??




?? Introducing Foodini:

FOODINI TL:DR VIDEO HERE


We’re (still) looking for community contributors to help with this DD series who can offer experience or expertise in the following:

  1. Scaling, growing, managing, developing or supporting a marketplace business
  2. Being a customer or service provider of a restaurant with specific dietary focusses
  3. Scaling a marketplace in the US
  4. Experience building AI chatbots, recommendations etc.
  5. Restaurant/venue owners
  6. Freemium business models
  7. Saas/marketplace growth experts

If you feel like you could add value, please add your name to this list and we’ll be in touch. Further info about the company and remuneration below!


??Foodini

What is it: Marketplace platform for food preparation and service outlets (restaurants, cafe's, food services, hotels, casino's, sports arenas) and the 1 in 3 people who have dietary needs (medical or lifestyle related)? facilitated via a mobile app and a webapp.?

Space/type: B2B2C and Direct to Consumer

Business model: Saas Enabled Marketplace

Why could this one of the 10 best opportunities you'll see this year: Niches make riches. Foodini is the only company we've seen attempt to own this market globally - 2.7bn people globally have a dietary need and it is a massively underserved market.?

The bet: That they can become the market leading digital platform enabling those with dietary needs to navigate eating out. That they can be the authoritarian source of ingredient level menu data (data which big foodtech does not currently have).

The Wow: 70k users and 10k restaurants from $500k cap raised. Proprietary databases of ingredient level data, and custom built AI and large language models allowing them to scale rapidly.?

What does it look like when they turn up next round successfully: Executed on integrations with multiple large food tech businesses such as Olo, DoorDash, and Food Services Co's and Hotel/Restaurant Chains for enabling scale. Also be established as the provider of this type of service across all of Australia, with the US being the bigger revenue driver come 12 months time.

Traction: 70k users and 10k restaurants from $500k cap raised


?? Quick links:

Link to our stackrank with further info (For subscribers only)

Direct link to put your name down to participate in the Community DD experience


?? Available Remuneration:

1/4 - To due diligence participants of 1.2% fee on up to $250k + ? on 20% Carry

?? The start an end dates:

16/2 - 14/3

?? Due Diligence leads: ?Rob Nicholls & Jock Fairweather ??



?? Pipeline updates and insights:

You can find in-depth notes? in our weekly Investment Analyst notes?

  • This week we added Ceres Tag & Kidly App to our watchlist through our IC members Jess Pattison and others!
  • Looking forward to this Friday's IC meeting to discuss progression and info on our pipeline!
  • It's important to note that our IC has 10 people in it, we all look at deals every single day - so to just reach this pipeline, one of our experienced team has already decided it matches our community thesis ??




?? Links and info:

Stay updated with our newsletter for weekly educational content and exclusive deal and talent opportunities.?

Otherwise, become a member of our community today to access a wealth of educational content and investment reviews.

  • Founders: submit decks for public or private review to support your capital-raising or improvement efforts.
  • Investors: access global, pre-vetted, VC-quality deal-flow and supercharged due diligence.
  • Contributors: Start building your knowledge and assets through contributing your expertise and experience to Ventures through Community Due Diligence



At Community VC, we believe investing should be accessible to everyone, not just those in the know. We believe everyone deserves the opportunity to invest and contribute to vetted ventures that move the world forward.

Please do not take this as Financial advice or a guide of what any outcome will be. This isn't financial advice, nothing in this email or newsletter is, I am not guaranteeing or recommending an investment or outcome in anything. I am simply listing opportunities I believe should be accessible to everyone and how the community has looked at this deal.

Jock ??

www.community-vc.com

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