Growth re-engineering for global DIY video animation and presentation scaleup
Wideo is a tech company providing simple online DIY multimedia software tools for non-professionals to create their own explainer and marketing support videos and presentations in the cloud. Their core team is in Buenos Aires (Argentina), but due to investments and strategic location, they moved their HQ to San Francisco (USA).
Wideo first engaged FFA to help them raise an international venture capital series a funding round (by researching and introducing European investors to potentially syndicate a deal with US ones to open both geographical markets), but after analyzing the investment readiness we found out that Wideo needed to undergo a major growth re-engineering to have a more solid support for their investment case.
In 2014 Wideo raised some relevant 7-figure seed funding rounds from NXTP Labs and 500 Startups, with an interesting board of seasoned professionals from the multimedia and creativity software industry.
We met Wideo at Seedstars World Summit in Geneva in 2014 (where Fast Forward Advisors was engaged as mentors and judges), in which they participated after winning the Seedstars Argentina competition. Agu De Marco, the CEO, and Founder of Wideo, wanted to explore the European market in terms of investors and discussed the opportunity of working with FFA to get support in these topics.
In 2015 Fast Forward Advisors started working with Wideo to execute the fundraising process, and shortly after moved into the growth re-engineering process as mentioned before.
"Fast Forward Advisors provided us with a lot of insights into problems and issues in our Series A pitch deck in terms of content and market/growth validation. From those problems, we embarked on a growth re-engineering process which helped us to identify our main value drivers and to focus on the strongest customer segments"Agu De Marco | Founder & CEO | Wideo"FFA identified our problems from a different angle and with experienced eye"
PROBLEMS & CHALLENGES
In 2016 Wideo was trying to raise a Series A round after raising 2 Seed rounds from including NXTP Labs, 500 Startups and Angels from the 500 network. They on-boarded advisory board from some Fortune 500 corporations in the creative software industry and were ready to embark on the VC fundraising journey.
The idea was to raise a funding round in both the US and Europe to support market entry with the investors’ networks and expertise/experience in the market, but Wideo felt that they were not ready:
1) Wideo was not sure about its market validation and how to scale the company internationally. It had 1M MAU and reached profitability, but didn’t have critical mass in any local market (due to a lot of global organic traffic), which given the nature of this mass product, is understandable. This made it difficult to build a strong investment case and clear resource allocation, since controlled growth, replicability, and defensibility were not really given.
2) Wideo positioned its product for a B2C or Soft B2B audience, and therefore set lower pricing and expected to see lower conversion rates across the funnel and lower customer retention and recurrence rates. This put pressure on showing a strong CLTV vs CAC ratio and therefore made it difficult to build a solid growth case. Still, the product was selling but didn’t have a clear customer segmentation in place, which could provide insights into the situation.
ACTIONS & SOLUTIONS
To start with FFA worked with Wideo on the investment readiness. We went through pitch deck, KPI dashboard and operational details and assessed the VC investment readiness, which as explained above was lacking. We provided an idea on how we could solve operational issues, in order to build a more solid business and investment case.
We suggested working with our Growth as a Service (and within it the Growth Engineering) framework, but not to use it for experimenting and validating growth for the existing product and market, but to use it for “re-engineering” of the existing situation. We set to work and reiterate on market experiments, internal improvements and growth setups with an agile process organized in Growth Sprints of 1 or 2 weeks each.
In a 12 Growth Sprints (24 weeks) project with remote work, FFA supported Wideo in this “re-engineering” effort, by focusing on these main activities:
- More precise customer segmentation (all most relevant customer personas with their industries, product usage and value, buying motivations, pricing and relative price discrimination) in order to understand, which segments were creating the highest value contribution and results
- Adaptation of products/features/pricing to the selected segments and analyze impact in terms of increased average CLTV and CAC and in decreasing fixed costs (HR, marketing/sales, development resources allocated, etc.)
- Change in growth stack, KPI dashboards and processes, in order to build a new business and investment case
IMPACT & OUTCOME
FFA executed the Growth Engineering Process and the result produced was the following:
- We identified that there were some customer segments that were related to professionals of large organizations using Wideo products for their internal tasks and activities. This puts Wideo’s product into the B2B / Enterprise IT & SaaS space, which has completely different rules, product requirements, value propositions, pricing, etc. This made Wideo eliminate some of the more B2C consumer-driven product features and related team members, in order to strengthen the new B2B setup
- Within these new customer segments we identified some industries in which Wideo was being used in a particular way:
– E-Commerce (use Wideo to automatically mass-produce tailored presentation videos about the products in the shop)
– Martech especially in Email Marketing (create customized embedded explainer videos that validated to be increasing CTR of emails
– HR in corporations (use Wideo to create branded Wideos for all type of internal communication needs, like new employee onboarding, announcements, product explainers, etc.)