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 problem

3. 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 ConflictThe Resolution

How to Communicate “WHY”

The Setting

The ConflictThe 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 months

3. 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 problem

2. 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,support functionsthathavetobeestablished

Competitive barriers– 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 concise

3. Include details on distribution, customer acquisition

4. Send only PDFs

5. Tell a story