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Project 2

The startup proposal outlines an EdTech company in the seed stage, with a strong founding team and a unique AR-based product that has shown positive pilot results but lacks market traction. A SWOT analysis reveals strengths, weaknesses, opportunities, and threats, while proposed solutions to communicate value include expanding proof of concept, forming strategic partnerships, and aligning with government programs. Investment terms include a Rs. 50,00,000 convertible note with specific milestones for conversion, and financial analysis indicates a favorable customer lifetime value to acquisition cost ratio.

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Pratik Jondhale
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2 views

Project 2

The startup proposal outlines an EdTech company in the seed stage, with a strong founding team and a unique AR-based product that has shown positive pilot results but lacks market traction. A SWOT analysis reveals strengths, weaknesses, opportunities, and threats, while proposed solutions to communicate value include expanding proof of concept, forming strategic partnerships, and aligning with government programs. Investment terms include a Rs. 50,00,000 convertible note with specific milestones for conversion, and financial analysis indicates a favorable customer lifetime value to acquisition cost ratio.

Uploaded by

Pratik Jondhale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Startup Proposal: Education Technology

Company
1. Company Stage Identification & SWOT Analysis

Stage in Company Life Cycle: Seed Stage

Justification: The EdTech company has built a minimum viable product and
completed a successful pilot but lacks market traction and product-market fit. These
traits are typical of a seed-stage company.

SWOT Analysis

Strengths:
• Strong founding team with IT product expertise

• Demonstrated positive learning outcomes in pilot testing (40% improvement)


• Unique AR-based pedagogy for enhanced biology education

• Growing interest in immersive EdTech solutions

Weaknesses:

• No established product-market fit

• Lack of current user base or paying customers

• High device and internet dependency

• Requires substantial content development and teacher training

Opportunities:
• Expanding digital education ecosystem in India and globally

• Curriculum expansion into other subjects and grades

• Strategic alliances with publishers and EdTech platforms

• Participation in government education initiatives

Threats:

• Intense competition from large EdTech players

• Scalability limitations due to hardware requirements


• Pricing sensitivity in B2B school segment
• Policy/regulatory hurdles in education content deployment
2. Challenge Analysis & Resolution Strategy

Core Challenge: Communicating Value to Stakeholders

Despite strong pilot results, schools and parents may be reluctant to adopt the AR-
based product due to cost, relevance, or implementation concerns.

Proposed Solutions:

1. Proof of Concept Expansion:


o Conduct additional pilots across 10+ diverse schools

o Measure and document improvements in learning outcomes and


retention

o Use testimonials and case studies for marketing and sales

2. Strategic Partnerships:

o Collaborate with textbook publishers or EdTech firms to embed the AR


app into existing content

o Leverage distribution and branding support from established players

3. Tailored B2B Messaging:

o Demonstrate curriculum alignment and cognitive learning benefits

o Offer trial-based freemium models to win trust

4. Government Programs:
o Align with Digital India, PM eVidya, and NEP 2020 initiatives

o Partner with public sector schools under CSR and grant models

Case Example: MEL Science (UK)

• Used AR/VR for science education with bundled kits

• Focused on affordable, curriculum-aligned solutions

• Now present in 60+ countries due to a clear value proposition and affordability

3. Convertible Note Investment Terms

Investment Amount: Rs. 50,00,000

Structure:
• Discount Rate: 20%
• Valuation Cap: Rs. 10 crore

• Interest Rate: 6% p.a.

• Maturity: 24 months or next qualified round

Milestones & Conversion Triggers

Milestone Timeline Conversion Outcome

Expansion to 10+ schools with 6 months Optional early conversion at


proven learning improvements 20% discount

25,000+ monthly active users with 9-12 months Optional conversion at


>15 min engagement valuation cap

Rs. 15 lakh MRR achieved 15-18 Automatic conversion at lower


months of cap or 20% discount

Rs. 5 crore Series A funding raised Within 24 Mandatory conversion


months

This staged structure protects the investor while aligning founder incentives with
growth objectives.

4. Customer Lifetime Value (CLV) vs Customer Acquisition Cost (CAC)

Assumptions:

• Average Subscription: Rs. 3,000/year

• Gross Margin: 70%

• CAC: Rs. 2,000/student

• Retention: 3 years

Calculations:

• Annual Gross Profit: Rs. 2,100


• CLV = Rs. 2,100 x 3 = Rs. 6,300

• CAC = Rs. 2,000

• CLV:CAC = 3.15:1

Break-even:

• Monthly Gross Profit = Rs. 175


• Break-even = ~11.5 months
Conclusion:

The company breaks even within one academic year and generates attractive
margins with retention beyond that. Institutional sales and bundled pricing models
can further reduce CAC and enhance customer value.

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