Investing

Screen Shot 2017-05-05 at 6.09.14 PM

Below is the investment paper I wrote and sent to a Venture Capital firm in Menlo Park.

Some background if you’re new to this post: A few months ago a Venture Capital firm posted a demo memo challenge for people aspiring to get a job in Venture Capital or get their foot in the door. Essentially you profile a company as an associate/scout you would pick to invest in. I picked VICIS, a local Seattle company.

I write the paper, they said good job but no and that’s okay. The investment was out of their area of focus, I learned what I wanted too and the position wasn’t available anyways. But then they email me asking what consumer focused platforms I’ve been watching so of course I reply back.

And then they email me again:

Screen Shot 2017-05-11 at 6.12.24 PM

Best way to get to know a firm.

What I learned was to stay in my own lane.


The template I used for the investment paper below is based off of Sequoia’s Roelof Botha investment in Youtube Exhibit 1. As a certified actuary I figured he was the best to learn from, particularly for this investment.

Football = head injuries and concussions = potential insurance claims.

I also profile two companies in the investment paper. One is a startup out of Ohio creating a football helmet liner inspired by nature or biomimicry (design based off of nature).

The product is helmet liner inspired by the hedgehog that can fall 30ft without doing harm to its brain or body. Hedgehogs walk away uninjured because the quills projecting from their pelts move omnidirectionally (in all directions) to absorb shock. Hedgemon LLC has designed a patent pending helmet liner based off this design.

Screen Shot 2017-04-26 at 6.41.24 PM

The second company is VICIS. The company I in the end recommend for the investment. More momentum better economics (unlike Hedgemon LLC, VICIS’s product is sold as a unit). And better design and technology.

To me the two helmet liners are the same but what distinguishes them is the technology. VICIS is superior in design and structural engineering, it’s the entire helmet that absorbs energy and moves not just the liner. The closest analogy I can give you to structural engineering is buildings. Buildings are naturally made to carry vertical loads but when it comes to earthquakes engineers have to consider structure and materials that can absorb the lateral energy. Rigidity breaks, you want something that moves.

 

%d bloggers like this: