IDEA #1 | STARTUP

AI Contract Explainer 📑

Legal jargon → legal jargone

1. Problem/Opportunity❓

Reading and understanding legal contracts is incredibly important, unless of course they’re the terms and conditions on a website you’ve just signed up to.

But for really important stuff - taking on investment, selling a business, buying a house and so on it’s actually critically important to read and understand the contract you’re about to sign. Sure a lawyer will usually help with this but they can’t always be relied on.

Eduardo Saverin learned this the hard way in the early days of Facebook.

But there’s a problem.

Contracts are long, boring and full of legal terms which are hard to understand for us regular folk.

So let’s build a tool to solve this problem.

2. Solution ✅

Here’s the idea…create a tool which summarizes complex legal language on contracts and makes them easy to understand.

The tool would scan the PDF or docusign contract and using a bit of AI magic would provide summaries of each section in plain english so anyone could understand them.

This tool could be used by individuals but the real money would be made by selling to enterprises. Think about scenarios where people without legal backgrounds, like analysts reviewing debt agreements as part of a Due Diligence process in an investment bank. This is someone fresh out of college being tasked with reviewing a 100 page loan agreement. They would get great use out of this tool, and the bank would have no problem footing the bill.

That’s the type of customer you want to be targeting here.

3. Business Model 🏦

Go-to-market: Start by testing it with individuals and once you’re proved it works well roll out it out to businesses

Monetisation: charge a subscription fee for access to the tool

Startup Costs: this is a pure software play so it shouldn’t be too costly to get off the ground. As always, you’ll need the services of a great engineer here, so either find one or be one.

4. How You’ll Get Rich 💰

There are many companies in the digital document space, like docusign, who would acquire a business like this.

IDEA #2 | VENTURE STARTUP

Caffeinated Water Brand 🔋 

Water with some extra juice

1. Problem/Opportunity❓

According to a 2023 survey 94% of people drink caffeinated beverages. Apart from proving that 6% of people are liars, this shows how dependent society is on caffeine.

But there’s a problem.

Many people get their daily hit of caffeine from unhealthy sources like cheap energy drinks, sugary Starbucks coffees or Panera’s super charged lemonade which allegedly killed 2 people since it was so high in caffeine. (if Panera’s lawyers are reading this note the “allegedly”)

It’s time to bring a clean, healthy caffeine source to the market.

2. Solution ✅

Here’s the idea…create a healthy, flavoured caffeinated water beverage brand. The product would be a flavoured water or sparkling water with some fruit flavourings and caffeine, making it as clean a source of caffeine as possible, apart from maybe black coffee which very few people like to drink.

Branding here will be key. You could either brand it as a healthy, clean energy source or go the Liquid Death route and more bold on the marketing. We think the latter route would have a better chance of success.

There are some brands in the US who have released products in this space, like Water Joe, but no one’s cracked this market just yet.

Someone will, why not you?

3. Business Model 🏦

Go-to-market: start with an eCommerce store, build up social proof around the product then move to selling in retail stores where this kind of drink would sell well

Monetisation: sell in packs online and in packs and individually in retail stores

Startup Costs: this will require some investment to get going, from R&D on the product formulation, testing, manufacturing, buying inventory etc. so you’re going to need to raise here.

4. How You’ll Get Rich 💰

Ideally you sell the brand to a company like Liquid Death. The average revenue multiple for the beverage industry is 2x, so you could get a tasty exit here.

NO BRAINER IDEA

Deliveroo for Leftovers

It’s Friday night, you’re a bit peckish but you don’t want to spend all that money on takeout.

Why not save by ordering some of your neighbour’s leftovers? Stuart’s leftover lasagna is gonna be delicious…just look at it.

Seed round opening soon, let us know if you want it.

BIG DECK ENERGY

FTX’s $1bn Series B Deck

Year: 2021

Stage: Series B

Amount: $1bn

FTX was one of the largest digital currency exchange platforms for buying and selling cryptocurrencies. They raised $1B in 2021 with this deck. Things haven’t gone that well for them since then…

JUST THE TIP

Take Risks like Richard Branson

Risk and entrepreneurship and go together like Batman and Robin, peanut butter and jelly, DiCaprio and women under 25.

But this isn’t exactly true. Entrepreneurship isn’t about taking risk, it’s about taking calculated risk.

Take Richard Branson.

When Branson set out to start an airline, Virgin Atlantic, he could have started it like most other airlines did, by buying a plane.

Instead, Branson negotiated a short-term lease on a $200 million jumbo jet with Boeing, that would allow him to return the jet to Boeing if his airline didn’t take off after a year (look at that pun).

So instead of sinking hundreds of millions of dollars into his new airline, Branson simply paid a short term lease with virtually zero downside but massive upside if it worked…which it did, given you can still fly with Virgin in 2024.