Check out the Cashbook-style Fundraising Strategy

The digitization of MSMEs is a big topic that has been discussed a lot throughout the pandemic, because it is this sector that is most affected and most in need of digital solutions to survive. At the same time, great potential is stored in this sector. So in the past year, many new players have emerged and have succeeded in attracting investors to inject their funds.

One of the startups with exponential growth lately is BukuKas. Within two years, this startup, which focuses on developing applications for financial records for MSMEs, has successfully closed the round $50 million series B funding (more than 727 million billion Rupiah). This nominal is quite large for series B funding which usually starts from the range of $30 million to $60 million.

What really makes this financial recording business for MSMEs so sexy in the eyes of investors? Then what is the strategy? growth hacking Cashbook can close the Series B round in just two years? To discuss this, #TuesdayStartup invited the Co-Founder and CEO of BukuKas Krishnan Menon.

Always prioritize product market fit

The BukuKas product is actually very simple, namely financial records for MSMEs. But in order to achieve in today's products, companies have to do research many times, see trends in the industry and ask users. In the first three months of BukuKas, the company invested heavily in product market fit.

after all, product market fit it is always a process that never stops because innovation is always new. Therefore, it takes an initial team with a high obsession, having deep experience in the industry, and directing all available energy to achieve a good product.

“Because creating a product that is easy to use is not an easy process. Can be proven from usage What kind of application is our application in the industry because we see what the market needs,” said Menon.

The initial team was built with solidity and dedication. Menon suggested giving them company shares so that they have a sense of ownership, so they don't just pay them, especially if the company can't pay them a high value.

These conditions are to overcome the retention of quality employees, especially supply quality talent is limited. “For them to also own a company, that's our way to get good employees at this stage seed. "

make pitch deck interactive

Make nationwide is a bit of work tricky because it must summarize information about the company, business plan, and market potential. Menon recommends decks should be no longer than 15 pages to keep the duration short. Efforts are also made to always prioritize graphics with a minimum of text to make it more interactive.

“The basic mistake founders make is making nationwide like a textbook. Try to minimal text, maximize graphics and no more than 15 slides."

He also suggests making stuffing nationwide the company can be compared with other similar companies so that investors do not have to read all the pages. This method is proven to reduce time and make people more interested in your company.

Not only that, to practice fluency in presentations, before heading to a VC with larger funds, it's a good idea to go to angel investors first. Menon see angel investors This is a great start to practice as they generally provide a lot of useful advice for founders.

“They can also provide new connections to founder, so it is suitable for founder which lacks connections in opening up more connections.”

Funding from now

Menon continued now is the right moment to do fundraising because this pandemic is proving that the digital way of working is the future. Therefore, founder must make a projection of the nominal funding needed to runway next 18 months. The fund must have a clear and detailed business plan.

The assumption that in the early stages of investors investing in founders, according to Menon, is completely true. That anyone could actually make the same product. The difference is how to take the opportunity by offering a solution, whether real or not.

“There is no specific strategy that we do when we get the initial investment. We just be ourselves, honest, and stay mission driven. "

Menon believes that large capital will make the probability of a company becoming a market leader greater. However, he denied that capital is not the main factor. Because there are many other things that support the opportunity.