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Investor Objection Handling > Fundraise 2023 > Flashcards

Fundraise 2023 Flashcards

1
Q

To how many SMBs have you talked to so far? How many have said this is a problem?

A

Roughly 250 stakholder, every planner was frustrated by current planning processes and software

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2
Q

Isn’t exactly this their job?

A

Yes

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3
Q

How fast is it?

A

Our MVP takes roughly 30 seconds to deliver results, depends on the project size though.

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4
Q

How are they interacting with it?

A

First plugin, then low-threshold website, accessible via one click. Then own planning engine

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5
Q

How often are your users using the product?

A

ca 1x a week

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6
Q

Why do they need your solution?

A

69% of planning time wasted due to manual, repetitive processes. Think drawing each and every socket for each room in your building model for 300 room hotel

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7
Q

Who needs what you’re making?

A

Building planners, Owners, Manufacturers.

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8
Q

How will you measure success?

A
  1. Engaged active users
  2. Revenue
  3. Tech Milestones

Unreasonable to predict commercial growth prePMF

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9
Q

Who is your target customer?

A

Planning offices (MEP, structural, archi), potentially owners and project developers

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10
Q

How far along is your product?

A

first automation product in closed alpha

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11
Q

What is the market opportunity for your service?

A

27€k/user/year

TAM: 1T = 37M * 27k€
SAM: 52B = 1.9M * 27k€
SOM: 530M = 16k * 27k€

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12
Q

What is your unfair advantage?

A
  1. we are the most experienced contech team in EU
  2. (Execution. We get shit done. ability to generate traction and revenue fast)
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13
Q

What is your long term vision for the company?

A

Building the ai powered planning software the industry deserves.

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14
Q

What inspired you to start this company?

A
  1. Unique opportunity in terms of unmet needs + huge market
  2. potential to work on cutting edge technology, enabling working with great talent
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15
Q

How are you planning to monetize your product?

A

Post seed: yearly user-based SaaS fee: 27k

later on: value-based pricing.

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16
Q

What is your product roadmap?

A

Start with plugin and first genAI product. Produce learnings and growth.
Move to own website.
Move to own planning software.

Keep improving AI product along the way (adding better norm coherence, produce more calculations, create additional plan views) along the way. Build for electrical planner first, then MEP, then structural, then archi.

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17
Q

Which accuracy can you achieve

A

Placement of elements: Over 90%

Routing: Over 95%

Schemas: 85%

Calculations: Rule-based

Norms: Over 95%, but will happen in iterations

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18
Q

How much data do you need to train your algorithms?

A

The more the better - 20 models a good start as basis for synthetic datasets

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19
Q

How do you position yourself against your competitors?

A

Different segment of the market (ICP), different geographical area

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20
Q

Couldn’t ChatGPT just build this?

A

not their business model

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21
Q

How is a plugin a VC Case instead of a cashcow?

A

Plugin fastest path to learnings and growth, will be followed by standalone - plugin is temporary

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22
Q

What is the AI part? Why is it needed?

A

Why
1. All buildings are similar, none are equal → high variability
(2. Capturing of implicit knowledge
3. Easy adaption to different workflows)

What
1. element placement
2. routing
3. transfer to similar rooms

23
Q

BIM adoption is not high enough

A

Regulatory changes, BIM adoption for our GTM 4x higher than industry standard anyways. Plus, we make bim easy and facilitate adoption

24
Q

Industry not used to SaaS models and very hesitant to it (insight Zenesis, Optimuse)

A

All incumbents have switched to SaaS

25
Q

How do you deal with workflows and planning style heavily depending on 3rd party stakeholders (owners, architects, GU)? This means your users cannot adapt to yor workflow, even if they wanted to

A

Using LLMs for user input to allow workflow flexibility

26
Q

Market share Revit in DACH and world?

A

not super relevant as revit dependency will be eliminated in the future. but worlwide around 70%, relative to our GTM 80%

27
Q

How did you arrive at 70% time savings?

A

See the graph on our slides. We eliminate 4/7 categories completely, save 80% on modeling, what’s left is coordination with other stakeholders and quality checks.

28
Q

How many savings do you enable for your customer with what you’re automating away?

A
  1. Total Savings: 68.4k = 41.4k (planner time) +25k (current software) +2k (current training)
  2. Total Revenue Enablement: 104k
29
Q

What takes how much time in the planner’s work? Are you tackling the no. 1,2,3 thing on the list here?

A

Yes, we actually eliminate 5 out of the 7 most costly planning steps.

30
Q

How many FTEh does what you are automating away actually take? How much do you really save?

A

69% of total planning time. For a project of 35Mio construction volume, this would be around 7kh (44months = 3,6years ) which are 210k worth of planning time.

31
Q

Scalability internationally when norms& workflows differ so much

A

EU and specifically germany has the strictest norms - if it works works here, it can easily be adapted for other regions

32
Q

Tech | Semi structured Data | How do you solve the tech. challenge of working with semi structured data

A
  • LLM-enabled Q&A style planning tool allows you to circumvent the problem of semi structured data
33
Q

GTM/ Business Model

A

GTM: Specialist Planner, starting with electrical planner, building types with a lot of repetitiveness.

Business model: B2B saas, yearly user-based subscription fee.

channel: outbound: i) cold outreach ii) trade fairs, iii) webinars

34
Q

Whats the problem

A

long planning times caused by shitty software and shortage of planners

35
Q

Your SOM seems pretty small.

A

som doesn’t matter in the game we’re playing.

our vision targets a trillion dollar market undisrupted for decades, and our som is the perfect first niche to accelerate learnings

36
Q

Just a plugin

A

Plugin fastest path to learnings and growth, will be followed by standalone - plugin is temporary

37
Q

Whats the solution

A

69% faster building plans

38
Q

Trust Issue

A
  1. Quality Checks are done anyways in the end - whether plans are manual or automatic
  2. Special focus on transparency & explainability in product is key to winning. Example on current MVP: Color coding of all changes.
39
Q

Dependency Autodesk: Why would Autodesk not just built a new feature if the plugin is successful?

A

tradeoff between fast learnings and growth vs security → building on top of existing software makes us much faster and as soon as we get enough validation on our AI, we can start building the underlying planning engine and thereby remove autodesk dependency.

but for now would be stupid to build own entire planning software given industry culture

40
Q

Are there regulatory forces pushing your target group to use your product?

A

Yep. most recent example BIM mandatory for public buildings in DE from 2022 on. Private projects soon to follow.

41
Q

Turnover per employee

A

Turnover per employee in planning is 100k (97) for MEP

42
Q

Profit per employee

A

small offices: 30k
> 100FTE <9k

43
Q

Return on sales (umsatzrendite) for MEP offices is:

A

1) <5 FTE: 35%
2) 5-10FTE: 17%

44
Q

business backlog MEP offices

A

9 month

45
Q

Most used electric planning software

A

Creating building model:
Total: > 27k

  • Revit | 3,3k
  • MagiCAD | 10,5k
  • Alpi | 1,5k
  • autoCAD: 2,3k

Schemas
- AutoCAD | 2,3k

Technical Calculations
- Solarcomputer | 10k

Collision Check
- Solibri | 1,3k
- Navis Works | 5k

46
Q

What are ppl currently paying for their solutions?

A

Total: 28k/user/year

Revit: 3300€
Plancal Nova: 1500€
MagiCAD: 10.500€
Alpi: 1500€
Auxalia: 500€
Solarcomputer: 10.000€
Solibri: 1300€
Navisworks: ???
(Orca Software: 5000€)

47
Q

Revit usage worldwide

A

Planners
World (Planner)
- Especially among large to enterprise sized (> 24 FTE) planning offices and innovative very small (<9FTE) ones Revit usage is highest, presumably >80% (Source).
- in North America, South America, Australia, Russia and India Revit usage given BIM usage is ca 80%

EU (Planner)
- the majority of companies in the EU are using revit, presumably around 60-70% given they use BIM
(Source)

DACH (Planner)
- >80% of our ICP (large to enterprise sized MEP planning offices) (Source: CustDev)

Architects (AR)
EU architects
- >45% of AR use Revit for BIM modelling (the other half uses ArchiCAD)
- 66% of all AR use Revit as CAD software

GER (AR)
- 31%: Vectorworks and Allplan
- 31%: Revit
- 27%: Archicad

US:
- > 55% (Source)

48
Q

Which % of industry players says the industry is ripe for disruption?

A

78%

49
Q

How much faster has R&D spending been increasing compared to the rest of the economy?

A

ca 10 total percentage points faster

50
Q

Market share BIM Dach and world?

A

Our ICP: > 80%.
Germany & DACH overall : 20%

BIM usage of other EU countries
Finland: 93% of architects, 60% of engineering
DK: 50%
US: 60%
UK: 30%

51
Q

Which players in the value chain will need to move first to adapt to the new con. industry landscape?

A
  1. GC: 66%
  2. Developers: 64%
  3. Design & engineering: 64%
52
Q

What is the top characteristic with highest impact on con. industry when do you expect it to have impact?

A
  1. skilled labour becoming increasingly scarce & expensive: 87%

When:
Within 1 year: 49%
1-10 years: 46%
10-20 years: 5%

53
Q

How does the construction value chain look like?

A
  • Total median revenue: 91M
  • Software: 9M = 10%
  • Development: 8M = 9%
  • Design & Engineering: 6M = 7%
  • Supply of materials & machinery: 71M = 78%
    • manufacturing of components, materials, machinery: 56M
    • distribution & rental: 15M
  • Offsite construction: 12M = 13%
  • General contracting: 7M = 8%
  • specialist contracting: 6M 7%

Investor Objection Handling (1 decks)

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