How to Create a Fundraising
Message That Works
Parth Mukherjee– HeadofMarketingJifflenowRahulThomasMathew- ProductMarketingManagerJifflenow
Wewillcover
• Problemstatement• Solutionstatement• Expressingyourbusinessplanandstrategy• Explaininggrowthplans• Establishingtraction• Metricsthatyoushouldbereadywith
What To Convey
1. This is an important problem that needs to be solved
2. We’re the right people to solve this problem3. We’re already making it happen
What is the problem statement?
THIS is why we exist. THIS is what we aim to solve. THIS is why customers will care.
Has to be simple.
Define & Communicate the “WHY”
Simon Sinek’sGolden Circles
How to Communicate “WHY”
The Setting
The Conflict
The Resolution
How to Communicate “WHY”
The Setting
The Conflict
The Resolution
State How You Solve It
1. Simple solution statement (<5 words)
2. Benefits versus Capabilities / Features. Use both.
Appeal to the emotional and the rational benefits
POP
Awareness Education Selection
ValueCreationMoment
Emotional decision Rational decision
Problem
SellingProblem solving
PitchAsk
CloseEducate
Communicate to VCs the Same Way as Initial Customers
On-boardingUseExpansion
Early Traction
1. Logos if applicable (B2B)
2. Scale if applicable (B2C)3. Conversion rates
4. Key benefits customers have seen
5. Quotes
Business Plan
1. How much people are paying / will pay for it? Why?
2. Pricing plan (per users versus usage / Silver, Gold, Platinum plans)
3. Projections (100 customers * 100 users * Rs 1000/ user)
Market Size
TAM• Demographic?
• Potential numbers?
• Size of Wallet
Growth Plan
1. How will you spend the investment
2. Key areas that need attention in the next x months3. Key targets that you will achieve based on it
4. 1 or 2 slides at best
Competitive Barriers / Your Advantages
What’s your unfair advantage?
1. How are you better placed at solving the problem2. Relevant experience
3. Competitive barriers you are setting up
Example - BHive
BHiveCover– Bhive Coworking SpaceTarget:Early-stageStartupsinBangaloreProblem:• Setting- Early-stagestartupsinBangaloreworkinisolated
apartmentswithoutexperthelp.• Conflict– Lackofco-operationwhenworkingindistributed
team;Spendtimeininfrastructuresetupinsteadofinnovation;Runaroundforadvice,oftendon’tfindany
• Resolution– Highquality,plug-and-playworkspaceswithahostofadvisors
BHiveSolution:• Workspacesthatinspirepeopleà Coolandinspiringdesign• Benefitfrotheexperienceofotherswho’vesucceededà
Learningsessionfromexperts• Savetimetobuildwhatmattersà Pre-packagedinfra• Beknowninthestartupspaceà Networkingevents
Earlytraction– namesofstartups,founderquotesBusinessplan– priceperseat,#locations,#ofseats
BHiveMarketSize– 5,000pre-angelstartupsinBangalore,average2pax perstartup,seatcostRs Xperpersonpermonth
Growthplan- #oflocations,supportfunctionsthathavetobeestablished
Competitivebarriers– haveaccesstokeypropertiesacrossBangalore,pre-builtnetworkofexperts,in-housearchitect,noalternates
NowYouGo!
Marketing Metrics that matter to investors
1. Customer Acquisition Cost (CAC)
2. Marketing as a % of CAC
3. Ratio of CLV to CAC
4. Time to payback CAC
5. Marketing Originated Customer %
6. Marketing Influenced Customer %
Customer Acquisition Cost
How to Compute this Implications for Marketing
All sales & marketing costs in a period/ Total
number of new customers in that period
An increase means Marketing/Sales spend might not be efficient
Marketing as a % of Customer Acquisition Cost
Total Marketing costs/ Total marketing and Sales cost used to
calculate CAC
An increase can mean 2 things1. Marketing spend was not
efficient enough2. Your Marketing model is
one where Marketing is doing a big chunk of the work to bring customers
How to Compute this Implications for Marketing
Ratio of Customer Life Time Value to Customer Acquisition Cost
How to Compute this Implications for Marketing
A high ratio means you have a higher ROI on Sales &
Marketing
Total annual payments from a customer/(churn rate*CAC)
Time to payback CAC
How to Compute this Implications for Marketing
A higher payback means that you take longer to earn back
the CAC
CAC/how many customers pay you on average each month
Marketing Originated Customer %
How to Compute this Implications for Marketing
A higher percentage means marketing is responsible for
driving a lot of the new customers and sales isn’t as
effective
Percentage of all new customers that came from a
lead that marketing generated
Marketing Influenced Customer %
How to Compute this Implications for Marketing
An increase in this % means that Marketing is helping
influence more buying decision making
Percentage of all new customers for a specific period who had any interaction with a
marketing activity
Things To Remember
1. The problem statement is your most important slide
2. Do not cram. Make every slide clear and concise3. Include details on distribution, customer acquisition
4. Send only PDFs
5. Tell a story
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