Edtech market map, robotics fundraising, getting started with FinOps • ProWellTech

Some purchases provide near-instant time to value (TTV), like buying an umbrella on a rainy day, or hiring a glazier to replace a broken window.

Cybersecurity startups, however, often experience long TTV, as enterprise customers often require several sales calls and a bespoke onboarding process.

To boost adoption and reduce churn, VC Ross Haleliuk shares four steps PLG cybersecurity companies can take to drive growth and reduce churn, along with multiple tactics that will help teams get started.

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As Haleliuk points out, fear-based marketing and aggressive sales techniques have made many potential customers skeptical about the value cybersecurity startups can actually deliver.

“One of the best ways to break through this cynicism is to show that users can accomplish something in five minutes when it used to take a few weeks,” he writes.

Thanks very much for reading ProWellTech+ this week,

Walter Thompson
Editorial Manager, ProWellTech+
@yourprotagonist

Edtech’s honeymoon might be over, but expect a second boom

After the pandemic drove students at every level into remote learning, edtech saw record levels of investment — until the public markets began to cool off several months ago.

“That said, it’s important to remember that publicly traded value represents a fraction of the overall edtech sector,” write Dealroom analyst Carla Napoleão, and Rhys Spence, head of research at Brighteye Ventures.

In a detailed report that studies both the public and private markets, the duo looked at global deal flow, trends in sub-sectors like K-12 and corporate learning, and recent M&A activity.

“Edtech still has deep and untapped opportunities. The markets may have slowed, but it won’t be long until the momentum returns.”

Show, don’t tell: Tips for robotics startups raising a Series B during a downturn

Hardware companies always had a hard time raising Series B rounds, but in spite of the downturn, Calibrate Ventures co-founder and managing partner Jason Schoettler says he’s still “bullish” about the sector.

Robotics startups will burn through forests of dollars before showing profitability, but teams that can demonstrate recurring revenue, growth and customer ROI will get an investor’s attention — and their confidence.

“You need to show that customers are deriving real value from your robots — saving time, money or both,” says Schoettler, who identifies the specific metrics robotics investors are looking for.

500 Global’s take on the rising competition among startup accelerators

According to Clayton Bryan, partner and head of 500 Global’s accelerator fund, demo days are still key for founders and investors, even if they’re now held virtually.

“We’re helping facilitate a marketplace of equity buyers and equity sellers, and just creating that environment is helpful to the companies,” he told ProWellTech. “It gives them the ability to understand if they are pricing their equity correctly.”

3 guiding FinOps principles that will help you explain cloud costs to the board

Cloud financial management, or more simply, “FinOps,” uses cross-functional teamwork between finance, engineering and product teams to help organizations make better use of their resources.

“Knowing your cloud unit economics is key to building an explainable, transparent model of your cloud costs,” writes Liran Grinberg, co-founder of Team8.

“Dev teams need to face the music and start being financially accountable for the infrastructure and services they use. Meanwhile, CFOs and CTOs need to get ready to answer some tough questions at board meetings.”