Project-2

Identification of Giving Proposal For Investment

I find the Education Technology Company proposal interesting.

Stage of the company life cycle:
The Education Technology Company is in the Seed stage of the company life cycle. It is
evident from the fact that the company is still in the process of idea testing, has no
traction and product-market fit has not been determined yet .

SWOT Analysis:

 Strengths:
Innovative and unique product that addresses a specific problem in education
Solid background of the founders in IT products
High potential for growth in the education sector
Improved student performance by 40% in pilot testing

 Weaknesses:
Value communication is a challenge for the company
Product-market fit is not yet determined
Limited product scope, currently only targeting biology students in Grades 7-10

 Opportunities:
Expansion to other subjects and education levels
Potential partnerships with schools, colleges, and other education institutions
Potential to provide a solution for remote learning and distance education
 Threats:
Competition from other education technology companies
Dependence on technology, which can be a barrier for some students and teachers
Dependence on mobile devices, which can be a hindrance for low-income students

Challenges faced by the proposal:

1. One of the main challenges faced by the proposal is value communication. The
product is innovative and unique, and it is crucial to communicate its value
proposition effectively to potential customers. To overcome this challenge, the
company can leverage social media and other digital marketing channels to create
awareness about the product and its benefits. Additionally, partnering with schools
and education institutions to conduct workshops and demos can help in
showcasing the product and its value to potential customers
.
2. Another challenge is determining product-market fit. The company needs to
identify its target market and tailor the product to their needs and preferences.
Conducting market research and surveys can help in understanding the target
market's requirements and expectations.

Potential ways to solve the challenges:

An example of a successful company in a similar domain is BYJU'S, an Indian education

technology company. BYJU'S has a strong brand presence and is well-known for its
innovative and engaging teaching methods. The company has overcome challenges such
as value communication and product-market fit by leveraging digital marketing channels,
partnering with schools and colleges, and offering personalized and adaptive learning
solutions to its customers.

Milestones for the business and corresponding rates of conversion:

Assuming that the company reaches the Seed+ stage after raising Rs. 50 lakhs, the
milestones and corresponding conversion rates could be as follows :
Achieve product-market fit - 10% conversion rate
Launch the product and acquire 10,000 customers - 20% conversion rate
Generate revenue of Rs. 1 crore - 30% conversion rate
Expand to other subjects and education levels - 40% conversion rate
 Customer lifetime value and customer acquisition cost analysis:

Assuming the average customer lifetime is 2 years and the customer acquisition cost is
Rs. 2,000, the customer lifetime value can be calculated as follows:

Customer lifetime value = Average revenue per customer per year x Average customer
lifetime - Customer acquisition cost
= Rs. 5,000 x 2 - Rs. 2,000
= Rs. 8,000

Therefore, the company needs to keep the customer loyal for at least 1.25 years (Rs.
10,000 / Rs. 8,000) to exceed the customer acquisition cost.