Early Stage Software Company

An investor and member of the board of this early stage software company asked Providence Enterprise Group to assess the sales prospects of the company in preparation for the second stage of financing.

The problem was this:  The company spent the bulk of the initial financing developing the product.  Technical considerations led them to re-code the application based on early feedback from potential customers.  This took longer and cost more than planned in the original budget projections.  The sales effort appeared to be stalled meaning that although the product was ready for general availability, they did not have as many customers as they had hoped.

The board was concerned that the sales situation would adversley affect there ability to secure a second round of funding with reasonable terms.  In addition, apart from the terms it was essential that the company develop an understanding of the appropriate sales model and value proposition to convince any potential investors that funding would produce results.

Providence Enterprise Group conducted an in depth study of the situation which included a review of the market, competetive analysis, review of product pricing and positioning, examination of the value proposition and current sales methods and pipelines.

As a result, Providence Enterprise Group helped develop a key account strategy, provided assistance with key account contacts, refined the sales methodology and value proposition presentation, developed a realistic pipeline, built revenue projections and budgets and helped re-invigorate the sales efforts by helping build a sales plan that was realistic and believable.

In this case, the board decided to delay the formal search for a second round of funding which would have resulted in less favorable terms.  Instead,the board decided to pursue a bridge loan with interested angel investors.  These investors provided additional funds at favorable terms confident that the renewed sales efforts would be successful and put the company in a much better position going forward.