Case Study: Creating a Strategic Plan and Raising a Pre-Seed Round

Introduction

The Company is an Arts and Crafts EdTech SaaS platform dedicated to enhancing well-being through crafting techniques.

Problem 

After four years of bootstrapping and a strategic pivot due to the pandemic, the Company found itself at a critical juncture. It became clear that they needed to raise capital to transition from bootstrap mode into a scalable phase. They aimed to raise its first round of pre-seed venture funding to develop a new EdTech SaaS product and expand its team.

Strategic Actions

1. Development of a Strategic Plan:

• We thoroughly analyzed our business, competitors, and the market to refine our strategic direction.

2. Investor Outreach Preparation:

• Compiled a detailed investor database using Airtable, including information on key contacts, investment preferences, our connections to them, and typical check sizes.

• Investors were ranked from best fit to least suitable based on their alignment with our goals and values.

• A tailored outreach plan was created to engage these investors systematically.

3. Financial Modeling:

• Developed a financial model depicting three potential growth scenarios, providing a clear picture of future possibilities.

4. Investor Presentation:

• Created a pitch deck, which was continuously improved based on feedback from ongoing discussions with potential investors.

5. Execution of Outreach Plan:

• Over six months, we engaged with over 100 angel investors and early-stage venture funds through direct outreach and warm introductions.

Results

We secured $1.5M in investments and closed the round six months after our first conversation. This funding was instrumental in allowing the Company to:

• Develop and launch a bespoke EdTech SaaS tool tailored for the B2B market.

• Establish a new distribution center to streamline operations.

• Grew course offerings by over 300%

• Expanded the team by hiring essential new roles

The infusion of capital and resources poised the Company for a new phase of growth and innovation in the EdTech space.