Analyzing the Series A Deck: Insights from Steady & Emmalyn Shaw
Steady's Fundraising Journey: Key Insights from Adam Roseman and Emmalyn Shaw
Steady provides a valuable service to hourly workers, assisting them with income management, income optimization, and access to advantageous offers on benefits and financial products. However, it required a period of refinement for founder and CEO Adam Roseman to articulate and convey the core strengths of the business effectively during fundraising efforts.
Securing Investment for Steady
To this point, Steady has successfully secured nearly $30 million in funding from investors including Loeb.nyc, Recruit Strategic Partners, Propel Ventures, and Flourish Ventures. Notably, Emmalyn Shaw from Flourish Ventures is a member of Steady’s board of directors, having spearheaded the company’s Series A funding round in 2018.
Leveraging Fintech Expertise
Shaw brings considerable expertise as a partner at a $500 million fintech fund. Her insights extend beyond fundraising strategies to encompass the essential elements for fintech success. We were fortunate enough to host both Steady CEO Adam Roseman and Emmalyn Shaw on a recent episode of Extra Crunch Live.
A Deep Dive into Steady’s Series A Deck
During the session, Roseman and Shaw generously reviewed Steady’s Series A pitch deck. They emphasized the critical role of showcasing a company’s inherent strengths. They detailed the strategies that contributed to Steady’s fundraising success and identified areas where the process could have been even more impactful.
Pitch Deck Teardown: Valuable Founder Advice
Shaw and Roseman also shared practical guidance for founders during a Pitch Deck Teardown segment. This segment features expert critiques of pitch decks submitted by audience members. Founders interested in having their decks reviewed on Extra Crunch Live can submit them through this link.
Key Takeaways for Founders
- Clearly define your business’s core strengths.
- Communicate these strengths effectively to potential investors.
- Seek guidance from experienced fintech professionals.
- Be open to feedback on your pitch deck.
Understanding these principles can significantly improve a founder’s chances of securing funding and achieving long-term success.
The Importance of Rapport in Investment
According to Roseman, successful investors prioritize understanding both the intricacies of a business and the character of its founder. He highlighted the substantial time he and Shaw dedicated to building a relationship prior to finalizing the Series A funding.
Roseman stated, “Past experiences have shown me that a lack of understanding regarding the business can lead to detrimental situations.” He further explained that Flourish demonstrated a thorough comprehension of Steady’s operations and maintained complete alignment, fostering a strong, lasting partnership.
Beyond Ideas: The Value of the Team
It's a common sentiment that investors frequently base their decisions on the strength of a team rather than solely on the merits of an idea or product. However, what constitutes a truly exceptional team or founder? Shaw emphasizes the significance of vision and passion.
“Adam possesses a direct and personal connection to the mission of Steady,” Shaw noted. “This connection translates into unwavering commitment, especially during the inevitable challenges of growth.” He also pointed to Adam’s experience in navigating the market, scaling operations, and his comprehensive knowledge of the fintech industry.
The Genesis of Steady
Roseman’s inspiration for Steady stemmed from his father’s experience after relocating to Savannah for retirement. His father quickly discovered insufficient savings and the difficulties of securing hourly work.
The process of finding suitable employment, maximizing earnings, and accessing essential services like benefits and financial tools proved fragmented and challenging. Roseman recognized that his father’s situation was not unique.
The number of individuals engaged in hourly work is consistently increasing, a trend expected to continue with the expansion of the gig economy.
Maintaining Focus During Growth
Early-stage companies often undergo significant changes, impacting features, business models, and team composition. However, the core problem and the overarching vision typically remain constant.
Roseman believes that effectively communicating this consistency is crucial for successful fundraising. He asserts, “Clarity and decisiveness regarding the problems you address and the target market experiencing those problems are key to achieving success.”
- Strong relationships with investors are paramount.
- Vision and passion are essential qualities in a founding team.
- A clear understanding of the problem and market is vital for fundraising.
An Analysis of Steady’s Series A Pitch Deck
The core strengths of Steady are intrinsically linked to the challenges faced by its target audience. The difficulties experienced by hourly workers, a rapidly expanding demographic, are multifaceted. Steady’s Series A pitch deck effectively communicated these complexities, ultimately securing investment from Shaw.
Roseman and Shaw provided insights into the pitch deck, highlighting both its successes and areas for potential improvement.
Roseman’s personal connection to the problem was a key element, initially presented with a slide featuring his father. A voiceover explained his father’s similar struggles to those of Steady’s broader customer base.
This empathetic understanding of the user base transitioned into demonstrable growth metrics. The deck showcased 200,000 installs, 140,000 registered users, and 165,000 initiated job applications between April 2018 and October 2018.
Shaw noted that while the customer acquisition cost (CAC) wasn’t directly on the slide, Roseman verbally communicated it, describing it as “very compelling,” especially within the fintech sector where acquisition costs can be substantial.
The deck clearly established product-market fit. It further resonated by illustrating the market’s scale, revealing that 94% of all net job growth originated from alternative work arrangements. The alternative workforce expanded from 15 million in 2005, with projections reaching 125 million by 2025.
Despite thoroughly defining the market size and the intricacies of the challenges faced by target users – including income instability – Roseman expressed regret over not more clearly articulating the return on investment (ROI) for users.
“We had data demonstrating incremental income generated for our early members,” Roseman stated. “Due to our unique business model and access to financial accounts, we could measure this impact. However, we didn’t prominently feature this data in the deck, which was a significant oversight.”
However, identifying a substantial problem within a large market isn’t sufficient for business success. The product’s features must effectively address the problem in a clear and distinctive manner.
Steady Series A Deck by Jordan Crook on Scribd
“Our aim was to articulate our differentiation by merging the realms of financial wellness and personal financial management with those of job searching and career navigation,” explained Roseman. “We shifted the focus from simply finding a job to securing and maximizing income.”
The deck detailed how the feature set was structured around income, emphasizing long-term income optimization and overall financial health rather than immediate employment.
Shaw suggested that the deck devoted excessive detail to the feature set. Six out of the 20 slides were dedicated to explaining Steady’s product features.
“This information could have been relegated to an appendix,” Shaw commented. “Investors possess varying levels of expertise. Determining the appropriate balance between deck content and supplemental materials is crucial.”
Roseman also believes he could have more strongly emphasized Steady’s core identity as a data-driven business. Steady possesses numerous strengths, and effectively communicating them concisely presents a challenge. He acknowledges improvements in this area over time.
Currently, Steady faces less need to extensively explain the market or the problem’s magnitude, which were initial strengths. However, he wishes he had highlighted the startup’s differentiation as a data business more prominently.
“Identifying your core value proposition, which will differentiate you in the market and create a competitive barrier, is essential,” Roseman said. “We were beginning to accumulate and leverage a valuable dataset, central to our operations. I’m surprised this wasn’t emphasized in the deck.”
Analyzing a Series A Pitch Deck
During a recent episode of Extra Crunch Live, we examined Steady’s Series A pitch deck alongside other submissions. A key segment of the show, the Pitch Deck Teardown, involves expert guests providing real-time feedback on decks sent in by viewers. (Interested in having your deck reviewed? Submit it through this link.)
Below are key takeaways from Shaw and Roseman regarding effective pitch deck construction:
Financial Projections: Focus on Present Reality
Avoid premature and extensive financial forecasting. Presenting projections extending four years into the future, particularly for an early-stage venture, often lacks credibility compared to demonstrating current revenue generation.
Understanding Revenue Drivers
Instead of solely displaying future revenue projections, prioritize showcasing a thorough understanding of the factors influencing revenue. Investors value insight into the variables at play.
Demonstrating Conversion and Lifetime Value
Clearly articulate not just metrics like CAC and ARR, but also the strategy for converting leads into paying customers. Provide evidence supporting your LTV (Lifetime Value) calculations.
