Encore’s $3M seed deck – TechCrunch
For this week Pitch Deck Teardown, I’m (practically) traveling to Sweden to take a look at the $ 3 million seed round raised by the start of the Encore development tool.
The company is creating what it calls a cloud software development platform. It has been reported that it raised Crane Venture Partners with Acequia Capital, Essence Venture Capital and Third Kind Venture Capital joining the round.
I wanted to take a look at this fight in more detail, in particular, because it tells a very elegant story in a market where it is extraordinarily difficult to differentiate, both for your customers and for investors!
Launching a development tool in a way that tells the story well enough to be understood, but without falling deep into a rabbit hole is an especially difficult challenge, and this is the thread of the Encore needle so efficiently on this platform of 24 slides.
We are looking for more unique field mock-ups for demolition, so if you want to send yours, here’s how you can do it.
Slides on this cover
- 1 – Slide cover
- 2 – “We spent 8 years climbing Spotify Premium” – team slide
- 3 – “Modern software is richer and more advanced than ever” – slide of the problem
- 4 – “Creating modern software is slow” – slide the problem
- 5 – “Creating backends seems easy” – problem slide
- 6 – “But there are many more things” – slide of the problem
- 7 – “Still allows you to focus on your product” – solution slide
- 8 – “Unlike all other tools, Encore understands your application” – solution slide
- 9 – “Unique end-to-end insights to radically enhance the developer experience” – value slide
- 10 – “Encore: the software development platform for the cloud” – product slide
- 11 – Diagram showing how current solutions work: Product slide
- 12 – “Improving the order of magnitude” – product slide
- 13 – “Flexible abstraction level” – product slide
- 14 – “Always work at your ideal level of abstraction” – product slide
- 15 – “What’s in the box” – slide of the product feature set
- 16 – “Roadmap” – product roadmap slide
- 17 – “Strong traction” – traction slide
- 18 – Diagram slide
- 19 – “User feedback is incredibly positive” – market validation slide
- 20 – Characters of the first users: slide of the target audience
- 21 – “Grow through word of mouth feeding a community of builders” – market launch slide
- 22 – “Start Charging for Productivity, Add Amazing Tools for Entire Organizations” – Business Model Slide
- 23 – “Sales through organic adoption and bottom-up meeting with direct sales” – sales strategy slide
- 24 – Company view slide
Three things to love
This is a relatively small round, and Encore is still very early in his journey, and I can understand 100% how he could “get away” completely from some of the things I’ll talk about in this disassembly. It also tells a really good story in an engaging way, so let’s start with the good one!
Problematic space easy to understand
Throughout a series of evolving slides (5, 6, 7), the founders do a very simple job of cutting a space within a market that now has spectacular competition. After going through a few slides telling the story of how the company is positioning itself in space, it begins to allude to what the product challenge is. The message of letting the tech team focus on building their product, rather than worrying about what’s going on under the hood, is a compelling proposition for anyone who has made DevOps ruin the product party.
One doubt here that is not serious enough to justify its own article in the “things that could be improved” section: these slides are formulated as if the company is talking to its customers. “We go you focus ”makes sense if you are talking about potential sales. Remember, however, that you are not selling the product to investors, but are selling shares of your business. “Let developers focus” would work best, and it’s also an opportunity to name who your target audience is.
Clear value proposition
Time is money, and if the results and results of most startups are anything to go by, developer time is right there with some of the most expensive time there is.
On slides 11 and 12, Encore explains why your product has such a powerful value proposition. hours of avoidable delays. The subtext is clear: this can be avoided by using Encore tools.
If the company can put the money where it is, that is, if it really reduces the deployment time from hours to minutes, and if it can demonstrate a direct link to development efficiency, the value for companies software is immense. This is; that’s the story: no matter what Encore does, exactly, if you can prove that developers save a significant amount of time and can find a way into the market, this is a company that could be huge.
Tell the same story in a different way
This slide says basically the same thing as slides 12 and 13, but it says it in a very easy way to view.
As a company, one way to get efficiency is to make sure you focus your developers on the things that really matter, which are worth repeating on several slides.
In the rest of this disassembly, we’ll take a look at three things that Encore could have improved or done differently. In particular, I’m curious as to why he focuses so much on his product, when, in my experience, investors generally don’t care as much as you might think. A more curious part is how the business works now (in the form of traction and looking for a repeatable business model) and what is expected to be achieved with the money raised in this round. We’ll also be sharing Encore’s full presentation so you can see it all in context.
Three things that could be improved
There’s a lot to love about the Encore platform – it simplifies a complex product story into a few easy-to-digest slides and shows why there’s an opportunity in the market. But if I had to invest in this company, I would have some questions right away. Let’s take a closer look at what the red flags look like: