The perfect pitch – Episode 3

– If we’re going out to investors, if I have to stand in front of a board of directors, – I just can’t have a curve that breaks. – They’ll just say “but your product is dead.” – Should I comment on just some minor things?
– Mm-hmm. – “Digital services”, right? That doesn’t sound scaleable. – It sounds like a service. We don’t like that. – F**k, man. For how long can you keep being too early? – I just don’t get it. – This series is presented by e-conomic. And why is that? – Well, because we at GoLittle, – actually, before GoLittle even became GoLittle, – have used e-conomic to manage one of the things I hate the most, – which is numbers and accounting. – For instance, something that can really fray my nerves – is VAT accounting. – As I’ve always found it rather unpredictable to find out – how much VAT we need to pay. – But what I’ve found out is that I, with the press of a button – in e-conomic, I can always keep an eye on – how much VAT we actually owe. – And that calmes my nerves a bit. – We need to figure out what the fuck to do. – Holy cow. – Emmm… This is proper s**t. – A crisis meeting. – I’ve promised our investors to triple the number of users on the GoLittle app. – But after a long period with massive growth – the numbers has now not just stagnated, – it’s falling. – And I don’t know why. – Astrid is the first to know about the problems – And the frustrations. – If we’re going out to investors, if I have to stand in front of a board of directors, – I just can’t have a curve that breaks. – They’ll just say “but your product is dead.” – What is… the most important thing right now in terms of getting that curve to turn, – I have a board meeting in just over a week, – it has to be turned by then, somehow. We need to show it going up. – Then it’s fine it had a drop. – I have to be able to go back to them and say, – we’ve solved it, we’re going up again. – We have to find out how we do that. – And you and I have to figure out what it’s gonna take. – So we really need to do a massive turnaround. – We have, like, a month and a half. – This needs to be a learning of, – when we hit a time crunch and we’re under all sorts of pressure, – you can read it clear as day, right there. – We need to solve this, and we need to f**king solve it, and we will solve it, because we can. – We have the skills to do it. – So. We need to figure out how we do it. – And it needs to happen fast. – Because soon, I’m off to Silicon Valley, where I’m pitching GoLittle. – For that reason, I’ve reached out to Heini, – founder of Vivino – the world’s largest wine app. – Heini is an expert pitcher. – He’s raised 350 million in capital, – and now he’s thankfully agreed to help get me – and my pitch ready for the US. – Hi, Heini. – Hi, good to see you.
– You too. – And thank you for… taking the time,
– Of course. – I’m wearing shorts, I’m relaxed. – And I promised you I would too! Have you been here before? – It was a bloody long time ago. – Before our meeting, I sent Heini my pitch deck for pitching our two products, – GoLittle and Mambeno, – and our vision of becoming a gathering hub for families – with several verticals. – I’m gonna talk a bit quietly, as it’s early in the morning – and the rest of the family is still asleep. – But em, I just got an e-mail response from Heini, – who’s seen my pitch deck, – and, em… – it wasn’t exactly perfect. – Em… He starts out by writing, – “You have to know your strategy,” – “Don’t send this pitch to investors.” – And he continues: “Slide 1-6,” – That’s a lot of slides, “I think the approach is way too broad,” – “we are trying to be everything for everybody,” – “even solve all their problems.” – “Eleven: Good, but show me the product.” – “Slide 12…” – And he finishes with… – “I know you’ve heard this before and I’m not sure how to fix it,” – “But it is confusing that there are two brands,” – “Mambeno and GoLittle,” – “Maybe it should be GoLittle Meal Planning and GoLittle Guide.” – As you can hear, there’s room for improvement. – So leading up to my meeting with Heini, I’ve completely changed the pitch deck. – Amongst other things, I’ve renamed GoLittle – to GoLittle Guide, – And Mambeno to GoLittle Eats. – To hopefully make it understood that it is one business, – with the same mission: – Making life easier for families with children. – Welcome to the chaos. This is Heini,
– Hey, I’m Jacob. – Coffee, something cold, or nothing?
– I’m thinking coffee. – I’m so glad you said that, as we have… – It’ll be 15 minutes before we get any coffee out of that! – No no no no! – We are, you know… Like, we might be sloppy in other areas, but the coffee machine… – We take that seriously. – And we’re starting out with a beautiful example – of the difference between a wannabe entrepreneur, – and a real entrepreneur. – When are you going? – The 2nd of September. – Wait, do you mean holidays or Silicon Valley? – I meant going to raise money. – Oh, raising money! – Because I was thinking of Silicon Valley, and to me, that’s travelling! – That’s true. That’s good. – As for raising money, that’s… now. – I was like, September 2nd, that’s f**king precise! – Yeah, we actually… we’re doing it now. – Em, so… – What do we have runway for? – If we’re lucky, we might have for… – End of year. – Oh, that’s fine.
– Is that fine? – Yeah, that’s okay. I mean… – It depends how much you need to raise. – I mean, we have– we need to raise, I mean… – It’s our first like, seed round, so we’re talking one million euro or more, yeah? – Okay.
– But I don’t know if that’s a lot or a little, or… – No, it sounds– as a seed, it sounds right. – So this is our first slide. – That’s what we’ve got.
– Should I comment on just like, some minor things? – “Digital services”, right? That doesn’t sound scaleable. – It sounds like a service. We don’t like that. Because that’s not scaleable. – It’s just a small thing.
– So what should we call it instead? – I’m not totally sure, but it’s about making it productised, – It has to be a product that can be scaled, and digital services sounds like something… – that’s a service business. – Do you wanna just read it yourself?
– Yeah. Or, you can do it. – Family life is threatened. Half of parents spend less than an hour a day – of quality time with their children. GoLittle bring back family time! – GoLittle Eats – – Denmark’s– – And that’s where I’m maybe missing some sort of bridge, that we have two services, – And we have–
– And how you link the two together. – So there’s a slide missing before this one.
– Yeah. – Which kind of says, we have two services in the market, they sort of, – cover two different needs in the family. – Something at home and something outside, I’m thinking.
– Yes. – Em… GoLittle Eats – is Denmark’s #1 subscription based meal plan and recipe service for families. – GoLittle Eats brings back dinner time! – So that’s the product, what you do is plan, order, and cook. – Yes.
– So… – Plan: Families receive a new meal plan every week, – they can plan next week’s meals from the couch, change recipes and add family to-do’s. – Em… Order, – You could maybe tie some family time in there, – something “together” something. In the cook part, there. – Oh, yeah. Yes. – Yeah, because what we actually want to do, – that “bring back dinner time”, that you actually make home-cooked food, it doesn’t have to be a hassle, – And you sit down together and eat a meal.
– Yes. – Em…
– You know that in the US, – they don’t do that enough at all. – Like there’s a clear cultural difference, em… – Like it’s just wild to see, like we have some girlfriends and stuff that get close, – they all walk around eating constantly, – and they never sit down to eat together. – and we really stuck to that, we eat at 6 or 7, – and we sit together and we talk to each other. – and it’s not something we force, it’s something we all really appreciate. – And that’s not something they do a lot in the States. – Families love GoLittle Eats. – 84% of GoLittle Eats families save time on shopping and cooking. – 87% of GoLittle Eats families eat more varied than before. – And 98% of all GoLittle– – of GoLittle Eats families will recommend GoLittle Eats to other families. – That’s great, huh? – You didn’t have, you didn’t have active… – Do you have like, ongoing paying users over time? – You don’t have that here, right? – No, that’s the one we felt was too flat, I think.
– Yeah, exactly. – But you’ll just have to work on that until it’s not flat anymore. – You need liquidity to scale.
– Yeah, I get that. It is tough. – And that’s what makes it so f**king hard for me to feel like I have a good case, – because I can just say “but I’m not scaling!” – You have to know that – the numbers for apps are pretty harsh.
– Mm. – Like, our numbers are, month two there’s 50% left, – and after 12 months there’s 20% left. – That’s just the way it is. 20% after a year is really good. – 15% is fine, less than 10% is shit. – So you have to try and retain – between 10 and 20%, long term. – If you do, you’re fine. – What happens with our numbers, right? Is that we peak in Q4. – Christmas.
– Christmas and New Years. – Exactly. So we’re, – we’re relatively flat at the beginning of the year. So we’re flat, – and then it starts going up here. And then it goes aggressively up to here. – And then it goes down again, but when it goes down, we’re on a new level. – And that happens all the time. So now we’re on a new level, and we’re off again. – Ahh, okay.
– And then it goes like that. – And then a new level again, right? – And that’s gotten really predictable for us, we can see, – all our numbers, they just go like this. That’s amazing. – This isn’t users. It’s only subscribers. – So that means, when you have 100% in March, the ‘paid’, – then there’s 77% left that’s paid, – and in ‘paid’… – there’s then 30% left in paid in month 15.
– Right, I get you. – I mean, the good thing is, – and this is typically what you see with subscriptions, that when you get far enough, it goes completely flat. – Mm.
– And that’s great. – And you might begin to be able to see what that is. – It’s around the 30%, right? – It’s not terrible, is it? – You tell me.
– It looks reasonable, it definitely does. – How do they pay, is it typically a month at a time, or is it 12 months? – About 80% month to month and about 10%, or… – 15% 3 months, and 5% yearly. – Okay. Have you had someone optimise that? – Em, no, not other than myself. – The only optimisation we’ve done is we’ve tried to increase the price by 10 kr., – it was 29 kr. initially, we put it up to 39, – and it made no difference, other than giving us a tenner more per user.
– Okay. – You didn’t get anyone moved to yearly? A yearly subscription. – We haven’t really made a big deal of that. – That could change your cashflow completely. – I get that it could change my cashflow, I’m just afraid it could also change my… – like, my lifetime for a customer, because it… – Like, a yearly subscription is the cheaper option, – compared to month to month, – Yeah. I mean, you could always do the math on that, – Yeah.
– But if means you can invest more, – get more people in, because you get the money sooner, – then you can earn that money back quickly. – Even if your lifetime goes down.
– Yeah, okay. – What I like, need to know from you right now, – or, what I’d like from you, is to find out, – If you had to make, like my challenge right now is, there are two slides I’m struggling with, – which are the intro slide, – like, where I describe – why it is that we have multiple products. – Well, one of the weaknesses of the Guide product, which you’ve definitely heard a hundred times, – is, how often will people use it? – That’s the TripAdvisor syndrome.
– Yeah, exactly. How often do you really need it? – Because you might be taking a small part of a larger problem and saying “that’s what we want to own.” – What you could talk about is, you have to eat every day, – so this Eats is a retention thing to keep people using the product all the time. – So to increase frequent use, – we have this Eats product, but… – It doesn’t help much as it’s not fully integrated. – Em… – Then let’s try another element. – If you were finishing the pitch, now I’ve presented Eats, I’ve presented Guide, – I’ve shown that we have some potential, – and then I have to somehow make, – the final slide, should there be an ‘ask’, – should you put what amount of money we’re trying to raise, – and for what, or is it just… – you know… – Right, yeah, you need one slide at the end, – where you talk about everything you’ve said throughout, – so you boil it all down to one slide at the end, that says… – You can tell them what you’d like, – don’t tell them how much. Tell them we’d like to raise this and this, – and never talk valuation in a deck like this. – Okay. And what do I say when they ask? Because I just, I don’t have that right now. – No, I mean… – You say as little as possible. – Like, let’s say I’m an investor, and I want to invest in Vivino in your next round, – if you have one, what am I investing, what would you tell me? – Well, I’d avoid the question a bit, – and then talk about what the last round was for, that’s typically what I do. – If you want to ballpark it a bit, you say, hey, – last round we raised whatever number, – and we’ve now grown 200% since then. And don’t say any more. – Then they can figure out themselves, right, then we’re aiming up that way. – So that’s what I’d do.
– That’s a good point. – Don’t do the ones you think are best, first.
– Okay. – Train a bit on someone you don’t think… either you don’t like, or don’t feel are a great match. – Practice on them. – There’s that story of, where… – where people say, hey, I have to do a hundred pitches – to close a deal, right? – But they tend to forget that the first pitch they delivered isn’t the same as the last pitch they deliver. – And you have to remember that, you improve, you get it tuned, you’ll get some feedback that makes you sharper. – Mm.
– So practice it on someone. – Now they’ll all know, the first ones you call, you don’t want. – But it is a good thing to get it practiced. – Always think about who you’re standing in front of. – Always think about how little time they have for you. – And how quickly you need to be able to explain it. – Bring someone in off the street, and be able to explain it to them so they say ‘f**k, I want to do that’. – That, and you’ll have to be a lot more– I think it’s way better now. – Okay.
– The biggest thing I might be missing, – is how the hell do you marry these two? – So it makes total, razor sharp sense. – What worries me most, and what I said about some of the bigger things as well, – is, that… It’s a small business right now, – that wants to do a ton. And all at once, – and that worries me a bit. – But, I… and you won’t like to hear this, I’m sorry, – have you thought about how successful the meal plan is, on its own? – have you thought about, let’s say, – you know what, this is really good, this is what we should run with. – Yes and no. – I mean, I have, em… – and depending on who I’m talking to, it’s… – And we finish where we started, – with Heini not understanding why I don’t just – focus on one thing, one product, – Mambeno. – But I just still have faith in the vision – of developing multiple products and verticals – for the same target audience. – Because if we succeed in that, – we don’t have just one, but maybe two, three or four – successful products, that can feed users into eachother. – I just have to figure out how to explain it – so other people understand it. – It was a pleasure, thank you so much. It was so nice of you. Say hi to Per. – Thanks, I will. Take care. – Enjoy your holiday!
– Thanks, see you! – What’s up, Morten?
– The hug, was it inappropriate to hug him? – No, it was perfect.
– But you know, I was like… – You never know if it’s… – Wasn’t he nice?
– Yeah, he was a great guy. – But hey, we weren’t completely off! – No, it was so good. – Pizza 45A under my arms, when, you know… – That’s how it’s supposed to be.
– And I talked too fast, and I get nervous, – and I get all sorts…
– He was totally down to earth. – But it’s wild to sit with some of those people – who just like… just like nail it, and say – do this, use this word instead of that one, – It’s just funny to see the first pitch I sent to him, – that I thought was… pretty okay, – it’s just, nothing compared to… – It’s way simpler now. – And I do see that if I can do that with all of… – like, the whole way through, – it could be pretty cool. – But s**t, I’m already nervous about having to go out and… – raise money and that. It’s just such a crazy game, you know? – That thing of… – Like, he’s raised like… 350 million – or something like that, em… – I don’t think he’s afraid of losing it. – like… but they do grow constantly. – The time is… – 17:18, and em… – I just went for a run, – and then… – I go to unlock my phone, – and there’s an… – e-mail from… – a potential… – A potential investor, – a venture capital fund, – and you can see it from the headline already, which just says “GoLittle follow up”, – “Hi Morten, thanks for the investing material you sent – which we’ve now had the chance to take an initial look at, – we’re happy that you reached out and got in touch, – despite being at a very early stage, – you’re too early on for our venture aspect, but probably also for our… – early aspect. – We would however like to invite you for a meeting so we can provide you some insight into, 1. What criteria we evaluate a company on, – where we perceive you to be today, and what dimensions to develop upon – to reach a maturity stage where we can invest. – There, we would of course love to get to know GoLittle even better – and hear you talk about the journey you’ve been on so far,” smiley. – “Would Tuesday or Wednesday after lunch next week fit into your calendar?” – It’s just like… F**k man, for how long can you keep being too early? – I just don’t get that. – We’ve f**king been too early since the beginning. – and no matter who we talk to, they think we have great numbers and all sorts, – but I’m just like… – then how do we keep being too f**king early? – So like, “a meeting Tuesday or Wednesday after lunch next week, would that fit into your calendar?” – No, not if you won’t invest! – Because I’m f**king busy getting that investment, – and if you won’t, I have to spend that time… – chasing up someone else. – And it’s just one of those hundred no’s you have to get before you get a yes, – as… – the cliché goes, but like… – I just don’t have time for those f**king no’s! – But on the other hand I just have to… – It’s an initial dialogue, it’s the first talk, and then you maintain the dialogue, – and then maybe in six months or a year we’ll be far enough, and obviously you have to know what they want, – because hopefully they want to invest eventually, and all that, but… – Ugh, it’s so annoying. – F**k, f**k, f**k. – And now I have to go in… – and be all, happy dad, like… – and go to my mum’s birthday in ten minutes, – S**t, man, and I need a shower. Well, – Another rejection. Woohoo.

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