Proposal Selected:

Education Technology Company

Founders:
Team with a solid background in IT products

Product:
Augmented reality app for biology students

Stage of the Company Life Cycle:

Early-Stage Startup

Evidence:

1. The product is in the early stages of development, with no determined product-market fit
and no traction yet.

2. The pilot testing showed promising results but hasn't reached a wide audience.

3. The challenge mentioned is "Value communication," which is a common hurdle for early-
stage startups trying to establish their product's value proposition and market fit.

SWOT Matrix for the Education Technology Company:

Strengths:
1. Innovative Product: The augmented reality app offers a unique and engaging way to teach
biology.

2. Strong IT Background: The founders have a solid background in IT, which is valuable for
developing tech products.

3. Positive Pilot Testing: The pilot testing showed a significant improvement in student
marks and understanding, indicating the potential for a positive impact.

Weaknesses:
1. Lack of Traction: The company has not gained traction or a significant user base yet.

2. Product-Market Fit: The product-market fit has not been determined, indicating
uncertainty about the target audience's response.
3. Limited Value Communication: The challenge of effectively communicating the product's
value suggests a need for better marketing and messaging.

Opportunities:
1. Growing EdTech Market: The education technology sector is growing, especially in the
post-pandemic era, offering opportunities for innovative solutions.

2. Demand for Better Learning Tools: As education becomes more technology-oriented,

there is a demand for interactive and effective learning tools.

3. Potential for Partnerships: Collaborations with schools, educational institutions, or online

learning platforms can enhance the distribution and adoption of the app.

Threats:
1. Competition: The education technology sector is highly competitive, with established
players and new entrants.

2. Technological Challenges: Developing and maintaining an augmented reality app can be

technically challenging.

3. Limited Budget: The startup may face financial constraints in marketing and scaling the
product.

Challenges Faced and Potential Solutions:

1. Value Communication:
• Solution: Develop a clear and compelling value proposition that emphasizes the app's
ability to improve student understanding and grades. Create engaging marketing
content, including demos and success stories, to showcase the app's benefits.
• Parallel Example: Khan Academy effectively communicates its value by offering free,
high-quality educational content and showcasing success stories of students who have
benefited from their platform.

2. Product-Market Fit:
• Solution: Conduct in-depth market research to identify the target audience, their needs,
and preferences. Engage with teachers, parents, and students to gather feedback and
refine the app based on their input.
 • Parallel Example: Coursera, initially an early-stage startup, achieved product-market
fit by collaborating with universities and offering online courses in high-demand areas,
targeting both students and professionals.

3. Limited Budget:
• Solution: Seek early-stage investors or venture capital firms specializing in EdTech.
Explore government grants or educational partnerships for financial support.
• Parallel Example: Duolingo, an EdTech startup, raised funds from investors and
educational institutions to expand its language learning platform.

Convertible Note Milestones and Rates of Conversion:

• Milestone 1: Achieving a Product-Market Fit

Conversion Rate: 20%

• Milestone 2: Reaching 50,000 Active Users

Conversion Rate: 30%

• Milestone 3: Securing Partnership with a School or Educational Institution

Conversion Rate: 50%

Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)

Analysis:

• CLV: The estimated CLV is Rs. 10,000 per student over four years (considering the
average duration of secondary education).

• CAC: The CAC is initially high due to marketing and user acquisition costs, estimated at
Rs. 5,000 per student.

To determine when CLV exceeds CAC: Assuming CAC of Rs. 5,000 and CLV of Rs. 10,000:
CLV/CAC = 10,000/5,000 = 2

In Conclusion, the business needs to keep the customer loyal for at least two years to ensure
that CLV exceeds CAC. After this period, each customer contributes more revenue than the
cost of acquisition. The business requires at least two years of customer retention to ensure
profitability. With the right approach, this startup has the potential to make a significant
impact on biology education and achieve financial success.