PROPOSAL 1- ED-TECH COMPANY

1.

The company not having received any traction nor having had a product-market fit/mix made
yet is therefore still an intellectual property and thereby at the ideation stage of the company
life cycle.

In the ideation stage, an entrepreneur can look to raise funds. Generally, in this stage, the
investor puts in money for research and development as she has complete confidence that the
entrepreneur’s idea is creating intellectual property(IP) and has mass marketability(MM).

In the instant case, there is an intellectual property, and the product has mass marketability.
The function it provides of getting augmented reality to the doorstep of students would
provide them with multiple ways to interact with their subject and understand it better.
Furthermore, with the study or test case that was conducted that showed that they had
developed better understanding of the subject matter and this proves that the product has
value.

As stated earlier, there is a need for IP and MM. The product has IP as it is something new in
the field of Ed-Tech and has helped in improving the understanding standard of students.
Furthermore, it has helped the students become more attracted to the subject of biology
through the field of interaction with the subject. Looking at a book alone or the diagrams
thereon do not provide a lot of stimulus and therefore bore the mind of the current generation
which seeks immediate response to any action. This also helps teachers. Therefore, this
connects the teaching -millennials to the learning Gen-Z. The product therefore can be said to
have mass marketability.

Due to a lack of value communication, it is clear that the IP and the product would suffer if
left under-supported. Therefore, it needs an very urgent funding and market vigilance to be
able to exploit future market fix/mix and commercialise steadily.
 STRENGTH WEAKNESS
 Improved understanding and  Implementation
knowledge o Students need capable devices and
 Interactive teachers need skill to use – a difficult
 Generation of more interest in task in the Indian Market
Students to Study  Longer Screen times

OPPORTUNITIES THREATS
 Multiple other lateral uses in other  High maintenance of devices
subjects  Cheaper alternatives that get the “job
 Attractive teaching style for modern done” of explaining
education  Difficult to use in all classes of
education institutions (public/
governmental and private)

2.

Augmented reality has really taken up its roots in the modern world especially since the
development of the metaverse and the ways to interact with it. The uses and potential of
Augmented Reality (AR) has grown over the course of the development of technology and
has particularly been very immense post the mid-2010s when AR became more readily and
cheaply available as compared to before. Another Tech-Ed start-up (then start-up)is Byjus
which has gained huge traction. The usage of its curated programmes and its aspects and eve
the uses of tablets with parental locking mechanisms has allowed it to be able to gain a huge
market share. Augmented Reality would be the next step, in using the same market or target
population. This population can afford tablets and therefore could also use them for
delivering the usage of AR. This could also mean that, if the product is successful enough,
Bujys or a similar Ed-Tech from China or elsewhere like in the United States might be
interested in a buy-out or a collaboration.

Although this may be the case, there are still some challenges that would be faced.
Hardware, Energy and Accessibility

The hardware required in the present scenario is difficult to replicate at a cheaper cost.
Devices like the Google-Cardboard had attempted to reduce costs but the trade-odd
experienced was the realism. The cost being high would limit the target audience to a very
small or closed group of upper middle class. Different smartphones have different hardware
and that also impacts the performance of such apps using AR- which requires heavy graphical
assistance and energy consumption that a battery in not generally suited to. This would lead
to the battery life of the device being greatly reduced and also lessen the overall life-duration
of the device. The accessibility of the device and the programme would be limited to those
who can afford such a thing. Combining the two issues, this becomes a major concern for the
middle and upper middle classes as they are the ones who are less likely to spend repeatedly
on such devices. This could be solved by mandating a uniform device requirement or basic
requirement as seen in the gaming industry for certain games. The target market for such a
programme would then also shift to those institutions that are capable of sustaining such
devices.

Revenue Generation

Becoming profitable is the next big hurdle. The product would require having some sort of
revenue to be able to garner market share and interest from bigger players. This could be
done by either having advertisements and a subscription model that removes them. It could
be made entirely paid, which would only allow one time payments- this might reduce overall
profit as can be seen from other industries. Products like Netflix and Spotify provide monthly
subscriptions, which could be implemented here for a constant revenue generation and also
become easier for institutions to purchase as this would allow them to only subscribe to it
during the times it is required.

Classical Conditioning

When students become over-exposed to the usage of devices, they would become habituated
to using such devices for any and all other subjects as well and this would cause attention
problems and also reduce overall interest to study all subjects. Students would also become
used to using devices all the time and this would greatly hamper their education. A simple
solution could be the termination or usage digital locking mechanisms to prevent unwarranted
usage.

3.

According to me, a convertible note would be the best or the ideal method to invest in this
product. I would use the following method for gaining the most investment while also
ensuring that they are all in line with what the vision of the product is.

It is my opinion that there should be 5 milestones.

Milestone Students per Total no. of Conversion

Investment milestone(s/m) Students Rate(%)
(INR)
1 50,00,000 100 s/m <=100 30
2 50,00,000 500 s/m 101-500 20-29.9
3 50,00,000 1,000 s/m 501-1000 10-19.9
4 50,00,000 5,000 s/m 1001-5000 5-9.9
5 50,00,000 10,000 s/m 5001-10,000 2-4.9

Milestone 1

The first milestone is one of the most important steps as it will test the practicality and
scalability of the product. The sample provided has already provided the data for
understanding the utility of the product. It would help the start-up understand where it is
lacking and can perform better by conducting further research and development.

Parameters:

Institution tie-ups: Minimum 5 medium to upper tier institutes.

Usage per institute: Minimum 10 students per grade (Grade 7 to 10)

Milestone 2

After initial changes to the product the scale of operations would once again increase and
commerciality of the product would be tested. This stage would attract early investors who
see potential.
Parameters:

Institution tie-ups: Minimum 15 medium to upper tier institutes.

Usage per institute: Minimum 10 students per grade (Grade 7 to 10)

Milestone 3

After having gained some interest by the market and also gaining utility and possible changes
this milestone would test the growth rate that could be achieved by looking at the number of
students that could access the product and also how well it fares when such a volume is used.
The initiative of White-Hat Jr. had faced issues at this point where there was a huge number
of students who were subscribing to their programme but not retaining. Also the quality of
education imparted must also be ensured to be kept at a stable rise or level at the least.

Parameters:

Institution tie-ups: Minimum 25 medium to upper tier institutes.

Usage per institute: Minimum 30 students per grade (Grade 7 to 10)

Milestone 4

The market has been tapped but the potential to improve and ensure overall success still
retains some doubt. As earlier mentioned, White Hat Jr. had issues at this particular instance.
This milestone would act as the last failsafe for investors if any problems ever do come up.

Parameters:

Institution tie-ups: Minimum 50 medium to upper tier institutes.

Usage per institute: Minimum 50 students per grade (Grade 7 to 10)

Milestone 5

The product can aggressively attempt to reach higher markets and expand more rapidly. With
10,000 students already using their platform, it would also be getting advertisement via word
of mouth and thereby be able to focus on other methods of marketing. Also, this milestone
would help the company ensure that all aspects of its management are smooth flowing. And
also remove restrictions to the grades as that would allow for even higher education
institutions such as medical colleges and universities to make use of this product.

Parameters:

Institution tie-ups: Minimum 500 institutes

Usage per institute: Minimum 50 students

The last milestone should be met within a reasonable time such as 5-6 years, 6 being the
upper limit and the last point.

4.

As explained earlier, the best way or model to follow would be a monthly subscription
model as it would allow convenience for institutions. To prevent the app from becoming a
seasonal usage item, the company would have to add other subjects as well as expand product
usage. The company would have to maximise utilisation of social media and google ads. A
well designed website that ensures all information is clearly understandable with a vibrant
customer support would further increase goodwill. This would cause more people to become
interested in the product and even help convert possible customers to recurring ones.

Customer Acquisition Cost(CAC) = Total Marketing Expense in a given period (TMEP) /

Number of customers acquired in the given period (NCAP)

TMEP= 2,00,000

NCAP=100

CAC= 2,000

Customer Lifetime Value = Avg. value of customer’s purchase / Time period of customer’s
purchase

Customer’s Lifetime Value for the First year would be, with a non-monthly subscription
model (this would be introduced afterwards)= 500
This could be tabulated as follows:

Milestone Time period Avg. Value CAC Total CLV Net Profit
of Customer of Customer
Purchase Purchase

1 1 500 2000 500 -1500

2 2 500 0 1000 -500
3 3 500 0 1500 1000
4 4 500 0 2500 1500
5 5 500 0 3000 1500
6

Thus , it would take at least 3 years for a loyal customer to turn profitable.