Kevin Davis breaks down the unit economics and marketplace cut of on-demand tech support platform Geekatoo.
Insight
Davis: Tech stack choices do not matter for early startup launches
“I wasted so much time, like, debating on whether to choose Rails or, you know, Java or, like, all this stuff. It does not matter. I mean, you can do a startup on an email list or write it in Cobalt for, like, you know, anybody cares. Just get it out. Try to ge…”
Assertion Supported
Davis: Food trucks cost $75,000 to start versus $250,000-$500,000 for restaurants
“Take a brick and mortar restaurant and you, if you get into that, it's, you know, maybe 250,000 or 500,000 and a multi-year lease just to really start a business. But with a food truck, you can do it on a fraction of the cost where, you know, maybe 75,000 gets…”
Insight
Davis: Food trucks allow lean customer experimentation before opening brick-and-mortar restaurants
“So the nice thing about food trucks is you get kind of this experiment where you go around and you see where your customers are. You get to iterate, find success, and then take that to you know, brick and mortar.”
Insight
Davis: Office landlords host food trucks for free to boost tenant retention
“What happens is you have like A 20 story building and the property owner, if they get like, you know, a little tiny bit, they don't really care. What they want is the quality of life that comes from like, hey, all these companies should stay in our building ve…”
Assertion Contradicted
Davis: There are no major nationwide mobile food vendor chains
“There really are no nationwide or worldwide kind of the mobile vendors. Cousins Made Lobster might be the closest one where you have a food truck, you know, a franchise of 16 across the country”
Disclosure
Davis: Geekatoo Raised Entire $2.7M Capital on Convertible Notes
“Just convertible notes.”