MuleChain

Early Stage

Global P2P Delivery & Warehouse Services

Analytics

Raised to Date: Raised: $0

Aggregate Commitments $

Platform

StartEngine

Start Date

10/17/2018

Close Date

01/15/2019

Min. Goal

$10,000

Max. Goal

$1,070,000

Min. Investment

$500

Security Type

Equity - Preferred

Funding Type

RegCF

Price Per Share

$0.01

Pre-Money Valuation

$11,000,000

Rolling Commitments $

Status
Not Funded
Reporting Date

01/06/2019

Days Remaining
Not Funded
% of Min. Goal

0%

% of Max. Goal

0%

Likelihood of Max
Not Funded
Avg. Daily Raise

$0

Momentum
Not Funded
Create a free account today to gain access to KingsCrowd analytics.
Location

Newport Beach, California

Industry

Consumer Products, Goods & Services

Tech Sector

Don’t mail it -- mule it! The MuleChain app is here to change how you send goods anywhere in the world. Simply login to the app, state the item you want to ship, where you want to ship it, and at what price, and the app will connect you with people willing to bring your item with them. Through this “convenience assistance service,” MuleChain is finding a new way for people to leverage the global sharing economy. They will also use MCX Tokens on the MuleChain platform as the global medium of exchange by MuleChain members, and it will be issued on the NEM Blockchain.
Create a free account today to gain access to KingsCrowd analytics.

Upgrade to gain access

Pay Monthly
Annually (Save 17%)

Edge

$12.42 /month
billed annually
Free portfolio tracking and KingsCrowd's quantitative ratings on all raises.
Plan Includes:
Everything in Free, plus
Company specific KingsCrowd ratings (excluding risk)
Advanced company search ( with ratings)
Markets page filters and historical industry data
Get Edge Annual

Edge Pro

$41.58 /month
billed annually
Full site access including KingsCrowd's qualitative analyst reports.
Plan Includes:
Everything in Edge, plus
Full access to detailed Analyst Reports (e.g. Top Deal, Deal to Watch, Neutral, and Underweight)
Search and filter based on Analyst Reports
In-depth risk ratings for every raise
Get Edge Pro Annual
Already a member? Log in here.

Analyst Report Analyst Report Methodology Article

Summary

This week we are going to analyze the market potential and the growth potential of MuleChain. It is a peer-to-peer logistics company that allows the ‘requesters’ to send off goods through ‘bringers’ AKA ‘mules’ to a required destination.

At first glance, the business opportunity looks attractive. It plans to redefine global P2P logistics, and it also offers temporary storage options for the goods. Overall, the company is providing an innovative and efficient way to deliver shipments across cities, states, and even countries.

MuleChain utilizes NEM blockchain technology to decentralize global delivery services. On the face of it, many people are in need of such services. However, it is the ground reality that makes us wary.

MuleChain is a part of the global on-demand market. The very nature of the on-demand market is rife with major winners and major losers. The challenges of managing a two sided marketplace with both supply and demand means the big will win, while the losers will flounder.

While Uber has shined by raising billions to keep up with their massive burn rate, many ride-sharing startups have had to close their doors due to lack of funding in a capital intensive customer acquisition market.

Along with the merits and demerits of the entire business concept, and its ability to survive and sustain, it is also critical to analyze the returns on investment for the crowdfunding investors. Such investors are usually small investors who invest their hard-earned money in hopes of high returns.

MuleChain: Raising on StartEngine

A Long Way To Go Technologically

The entire premise of the P2P logistics business rests on technology. The technology needs to be advanced, fail-proof, and fast. MuleChain is using the NEM blockchain technology that seems to be promising.

However, only the prototype of the mobile app has been released yet, and it will be many iterations and development rounds before MuleChain has a viable product on an untested blockchain technology.

The MuleChain Routes mobile app is a work-in-progress, and may or may not turn out to be effective with no proven capability to date. And the MuleChain Tokens are yet to be developed, along with the development of the blockchain. The company states that there is no guarantee that successful development will ever occur.

Poor Precedents

There have been numerous cases of failed last mile on-demand startups recently. Most of these businesses look very promising, to begin with. However, they lose their luster sooner than later.

A noteworthy precedent that fell flat is Shyp, an on-demand shipping startup that was founded in 2013 and closed its operations in March 2018. Shyp also hoped to revolutionize shipping by offering on-demand shipping to the individuals and small businesses. It started off, optimistically and received over $60M in venture-capitalist funding.

Unfortunately, in the early days, the business did not have enough focus on sustainability and kept going after expansion. By the time the company started trying to be sustainable, it had reached a point of no return.

It got crushed under the high pressures of expectations and the costly nature of the business, which requires marketing to both the supply and demand side of the market. Ultimately, the cost to grow were too high and the business model yielded poor margins making the business unsustainable.

High Valuation  

MuleChain has a post-money valuation of $11 million which is higher than many companies in a similar stage raising via equity crowdfunding. With so many uncertainties looming we think the valuation should reflect that.

With no indicators of product-market fit to date and a product still in need of much further development to be ready for testing, the valuation is too high for the current state of the business.

The Bottom Line

As our recommendation, MuleChain warrants an underweight rating. There are just too many questions. It’s path to becoming the “Uber of Logistics” is a long one.

The technology of the company is still under development, and there are numerous outstanding questions of the business model viability. MuleChain was expected to be developed on the NEO platform, which was later changed to the NEM platform. It also applied for the NEM Community Fund Technical Grant that was suddenly canceled. This was when the company decided to go the crowdfunding route.

Therefore, although the company has certain promising aspects, due to the overall uncertainty involved with the on-demand market and the high resource intensity required for the industry, we would recommend not investing too heavily in this deal if at all and consider the risks before doing so.

If you have any questions regarding the underweight rating of MuleChain, you can reach us at hello@kingscrowd.com.

Create your first portfolio

Create your very own investment portfolio on KingsCrowd.

Now you can track all of your startup investments in one place utilizing our state-of-the-art portfolio tracker tools. To begin, create your first portfolio below.

Add to portfolio
MuleChain on StartEngine
$
Platform: StartEngine
Security Type: Equity - Preferred
Valuation: $11,000,000

Follow company

Follow MuleChain on StartEngine
Withdrawn
Bullish / Bearish
You're Bullish on MuleChain on StartEngine

Thank you for your vote on MuleChain on StartEngine

Bullish / Bearish
You're Bearish on MuleChain on StartEngine

Thank you for your vote on MuleChain on StartEngine