We're preparing a pitch deck for our startup which looks to partly make money from downloadable content. We'd like to add a subscription model for the content, and we are looking for examples of financial models or pitch decks to understand what other startups have presented when pitching to investors.
@B20000 - Almost all my online businesses are subscription, most are SAAS, and they all differ greatly. A lot of factors come into play, including your target audience, market size, competitors, your pricing, and even how much money you can afford to throw behind your marketing efforts to build buzz.
Unfortunately if you are not that intimate with your product's market your time spent talking to investors would likely not be wisely spent.
My advice is to first study the competition. They will give you the best indicators of what you might possibly do. In business, there is one key rule: "I can do, what you can do, better".
Next, try your best to build the application or site without any investors. If you can do this you will save a ton of equity and your capital raising efforts will be more fruitful. If you can launch, without investors, and run the site for 3-6 months, you will have hard numbers you can show to any investor. After your 3-6 month "beta" period you could do something like this:
Mr Investor, Currently we have 300 customers earning us $3000 per month. Development is done, but we need 50k for feature upgrades based on our feedback. Upgrades will take 6 months to develop. We also are raising 400k for marketing. We were able to get to 300 customers with a marketing budget of $900. We have since realized what ad channels work best for our product, and feel that with a 400k investment we could add 125k customers taking our monthly revenue to $1.25m.
The point I am trying to make is that investors love sure bets. They will be willing to take a smaller cut of a sure bet, rather than a full cut of a shot in the dark. Investors love subscription apps, they are very attractive. You need to only raise what you need, and be VERY FRUGAL WITH THE AMOUNT OF EQUITY YOU GIVE UP. Its in your best interest to only raise capital when its most necessary, and almost always this is for marketing, not development.
Plus if your product fails, because its a poorly thought out product, or the market doesn't respond, you wont burn your reputation with investors. This is also key if you want to be a player in the software community. Word travels fast, and it is a small world.
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