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cooldudetta's version from 2016-12-02 23:53

PRODUCT / SOLUTION

Question Answer
What does Kwaddle do?- Kwaddle is an online marketplace that connects parents and child activity providers.
- It is also a community for parents to coordinate logistics and share child activity-related information with one another.
--> logistics = carpooling rides, share enrollment info and registration dates
--> community = connect with child’s friend’s parents, who are not my FB friends.
How does it work (technically)? What is the user experience?- Tech stack: wordpress platform with many different plugins to launch MVP.
- As a user, I can view different camps and activities for my child.
- Once logged in, I can write reviews, save a camp for later and create a customized, have a shareable calendar.
What is unique about Kwaddle?- Kwaddle is the only marketplace for parents that puts community at the epicenter.
--> a marketplace for parents to discover new activities,
--> a community for parents to connect with one another for sharing information
What big problem does it solve?- The problem is that parents are forced to spend too much time to find and manage enrichment activities for kids.
- And, providers are very inefficient in how they market to parents.
- For example, parents are manually creating spreadsheets of events for their kids and emailing them to other parents in order to plan a child’s summer.
How big is the market opportunity?- Child enrichment and care is a roughly $60B market that is growing roughly 3% per a year.
- There are 70M children under the age of 18 in the US and as more millennials become parents, they need tools to manage their child’s extra-curricular activities.
- Currently, there is no dominant players in this space. There is an opportunity to become the biggest player in a large market.
Why do users care about your product or service?- Parenting is a competitive sport, we help parents become super moms and dads.
- It solves a critical problem for parents by saving them time and giving them access to information they would never know about.
What are the major product milestones?- M0: (Oct. 2016) MVP launched to test user acquisition assumptions
- M0 (Jan. 2017): Launch v1 of the product
--> integrates community features (reviews, save for later, shareable calendar), along with tracking and reporting for transactions
- M1 (Mar. 2017): 200 providers, 5,000 customer transactions
- M2 (Jun. 2017): Expand to new cities (Houston, Dallas-Ft. Worth, San Antonio)
- M3 (Jan. 2018): Expand outside of Texas
What are the key differentiated features of your product or service?- a “shareable calendar” that a parent can use to plan all the activities for a child and then share this with other parent friends in order to coordinate registration of kids into the same programs.
- ??
What have you learned from early versions of the product or service?1) A blog with content is good, but that is not enough to attract users. Consumers, especially busy parents, want a fully functional MVP. (action: we plan to add more into MVP for official launch)
2) Providers want to see a lot of traction with consumers before they will spend their time and resources to list programs on our site. (action: focus more on user growth)
3) Early traction requires non-scaleable tactics. (action: focus on smaller, non-scaleable benefits that can be offered to parents to get them engaged in the site. e.g. blog posts such as “The Top 5 Dance Studios for Kids in Round Rock, TX”)
4) parents don’t care about booking feature as much as we thought. (shareable calendar will be added to MVP)
How many pivots and iterations did you have?- 1 substantial iteration on the website (first we started with a google form and a bootstrap template, and now we are building a fully functional MVP)
- 1 major pivot on strategy (initially, we focused on attracting providers, feedback on mock-ups showed not to focus on building scheduling software, now we focus on parents)
How much did you spend on the MVP?$3,000 (wordpress plugins, themes, hosting, other software tools)
What are the two or three key features you plan to add?- a “shareable calendar” that a parent can use to plan all the activities for a child and then share this with other parent friends in order to coordinate registration of kids into the same programs.
- a tool to allow parents to answer questions about their child and receive recommendations on what programs to try putting their child into.
How big can Kwaddle get?Kwaddle has the opportunity to become a billion dollar company that manages all aspects of extra-curricular child development. Currently, there is no dominant marketplace to discover and manage kids activities.
memorize

MARKET

Question Answer
What is the actual addressable market?- Of the roughly $60B market, roughly 20% of the market is actually addressable because providers will realistically sell 80% of their inventory on their own and they will need help selling the remaining 20% of their inventory ($12B = $60B x 20%).
- Commission rate 15% x $12B = $1.8B in revenue. This value approximately matches our bottoms-up estimate.
- From our survey we found that providers are spending $2000 per a year on marketing, on average. 800,000 providers x $2,000 = $1.6B spent in marketing.
What niche are you going after first?Camps - biggest pain point for parents. (potential for most traction)
What percentage of the market do you plan to get over what period of time?- Y1=0.01%
- Y2=0.05%
- Y3=0.2%
- Y4=2.0%
- Y5=5.0%
What sources did you use for your research?- Industry reports (IBISWorld)
- parent surveys and interviews
- provider business surveys and interviews
- NYT articles
How did you arrive at the sales of your industry and its growth rate?- IBISWorld industry reports, in addition, the rate of growth of this industry is roughly the same as GDP (e.g. sports & coaching, martial arts, summer camps, after school programs, etc.).
Why does your company have high growth potential?1) a large market;
2) highly fragmented market;
3) low technology penetration;
4) more marketing dollars for businesses are moving to digital;
5) digital marketing is becoming increasingly complex for small businesses to execute on their own;
6) more millennials are becoming parents and they need digital tools to fit their digitally connected lives;
7) an increase in dual income households with kids
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FOUNDERS / TEAM

Question Answer
Who are the founders and key team members? How do you know each other / have you worked together?- Deven Hariyani (CEO), Nevena Djaja (CTO), Avani Chhaya (Community Manager)
- Deven and Nena met over FounderDating, and a few months ago and started collaborating. Initially, Nena was an advisor, but quickly become excited about the concept and decided to come onboard as CTO.
What relevant domain experience does the team have?- Deven - PM/engineer at high growth consumer startups that focused on creating an organic community. For example, Twitcause reached 10M users in under 6 months. He also worked at the world’s leading ratings & reviews company that provided consumer trust and transparency for the top brands in the world.
- Nevena - engineer at top email marketing firm and a B2B Saas tech company that connected hundreds of complex enterprises together on a platform. Her skills in data integration across many different systems will be highly valued when connecting providers.
- Avani - former 4th grade teacher for Teach For America, journalist for the university paper and university program coordinator at UT. She understands the psychology of parents and child development from an educator’s POV.
What key additions to the team are needed in the short term?- Engineering and Design experts to help build the product.
- User Growth/SEO/Marketing to rapidly grow user base
How much are you paying yourselves / burn rate?- $0
Why is the team uniquely capable to execute the company’s business plan?- We are a diverse team with experience cutting across: Consumer Internet, Enterprise Software and Education. We are also a team made up of parents and millennials, so we understand the pain points of our target market.
How many employees do you have?- 2 FTEs, 2 PTEs
What motivates the founders?The dream of creating an impactful and scalable product that can serve a segment of the population that desperately needs better digital tools (parents and SMBs).
- It's exciting to work on a product/service that has a potential to become the biggest player in a large market (and disrupt things).
What university / business school did they graduate from?- Deven Hariyani: UCSD, BS. Comp. Sci; McCombs, MBA
- Nevena Djaja: Univ. of Graz, BS. Elec. Eng. and MS Radio Comm. and IT (started PhD at Gatech)
- Avani Chhaya: U of I, Urbana-Champaign, BS. English
What networks do you have access to?- Women Who Code, LeanIn circles, Women 2.0, Women Founders Network, (Girl's scouts)
- School alumni networks, Microsoft-alumni network, parent networks, tech startup networks in Bay Area, Chicago and Austin. 826 Valencia - non-profit
How do you plan to scale the team in the next 12 months?2 Full-stack Engineering, 1 Designer, 1 PM for SEO/User Growth/Marketing
memorize

FINANCIALS

Question Answer
What are the company’s three-year projections?- projections for annual revenue are: Y1: $250k; Y2: $1.2M; Y3: $3.2M
- projections for # of unique visitors are: Y1: 50k; Y2: 180k; Y3: 500k
- projections for # of transactions: Y1: 5k; Y2: 25k; Y3: 70k
What are the key assumptions underlying your projections???
How much equity and debt has the company raised; what is the capitalization structure?- 100% equity, 0% debt
What future equity or debt financing will be necessary?- We need to raise seed capital of $200k
How much of a stock option pool is being set aside for employees?- A 15% stock option pool for employees (non-founders).
When will the company get to profitability?- We project to be cash flow positive in the early part of Y4. (2018)
How much burn will occur until the company gets to profitability?- We plan to burn through $1.5M in capital over 36 months before getting to cash flow positive
How much is being raised in this round?- $200k @ a valuation of $4M
How much equity is being held by whom?- Deven H.= 67%, Nevena D.= 30%, Avani C.= 2.0%, Joe L.= 0.05%
What is the company’s desired pre-money valuation?- $4 M
What is the planned use of proceeds from this round?- Product Development = 40%
- Sales & Marketing = 40%
- Hosting & Operations = 10%
- Legal / Other = 10%
What milestones will the financing get you to?- Financing will get us to M2 on our list of milestones (Jun. 2017)
- M0 (Jan. 2017): Launch v1 of the product
- M1 (Mar. 2017): 100 providers, 1,000 customer transactions
- M2 (Jun. 2017): 100 transactions/month, Expand to new cities (Houston, Dallas, San Antonio)
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