Funding Case Study: Brayola
[title color=”pink-vibrant” align=”scmgccenter” font=”ptserif” style=”normal” size=”scmgc-2em”]Funding Case Study: Brayola[/title]
Here is a quick Funding Case study focused on a new cool company called Brayola.
In other words, if Brayola asked me how to get funded, here are a few thoughts and recommendations for them.
[title color=”pink-vibrant” align=”scmgcleft” font=”ptserif” style=”normal” size=”scmgc-2em”]Snapshot:[/title]
Brayola is a new online service which leverages crowd sourcing so women can recommend their favorite bras to their friends and others.
A women joins the community, creates a Brayola drawer (a virtual drawer) where they can enter their size details along with favorite brands and products.
These product recommendations include a link to the relevant products on Amazon and Bare Necessities.
[title color=”pink-vibrant” align=”scmgcleft” font=”ptserif” style=”normal” size=”scmgc-2em”]Business Model:[/title]
The initial business model seems to be affiliate based. In other words, when recommendations lead to purchase through the Brayola links at Amazon etc, Brayola should (or could if they don’t…) gain an affiliate commission.
Given, according to the website, 10K women have already created Brayola draws, one significant challenge of most startups has been overcome, namely customer adoption.
[title color=”pink-vibrant” align=”scmgcleft” font=”ptserif” style=”normal” size=”scmgc-2em”]Future Business Models:[/title]
There are a number of potential business models Brayola could explore….
[title color=”pink-vibrant” align=”scmgcleft” font=”ptserif” style=”normal” size=”scmgc-2em”]Potential Business Model Ideas:[/title]
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- Other products added to the drawers
- Their own products
- Customer Designed Product lines in the bra category
- Consumer Data collection for brands
- Product Innovation for brands
- and the list could go on for another ten pages or more….[/list]
[title color=”pink-vibrant” align=”scmgcleft” font=”ptserif” style=”normal” size=”scmgc-3em”]Strategic Questions:[/title]
Given the current business model, the technology has already been built. In other words, the ability to scale the current model is not dependent on technology development and is more a factor of marketing, public relations and increased customer adoption. As there are ‘viral’ elements built into the marketing model, this customer adoption should be fast and inexpensive.
Why is this an important point? Because how much money is required to take Brayola to the next key milestone?
Is the next key milestone X# of customers?
Maybe, but if I were the founder, I would be thinking big picture….i.e. where can I take Brayola next?
Is it geographic expansion? Is it expansion of product line? Is it new revenue models?
My gut tells me I would focus on geographic expansion and if so, additional languages may be where I’d focus.
[title color=”purple-vibrant” align=”scmgcleft” font=”ptserif” style=”italic” size=”scmgc-3em”]Funding Suggestions:[/title]
The further Brayola can go in proving its business model, the better valuation they are likely to get when (if?) they take onboard investors.
My initial thought was for Brayola to focus on a few strategic investors, i.e. companies in the clothing / bra industry…especially as the potential exit here is through acquisition.
One concern with that strategic investor approach is the potential customer perception of ‘bias’ – somewhat mitigated by the fact that customer recommend brands and Brayola does not.
I believe Brayola also has the potential to get some seed Venture Capital companies interested in backing them given they a) have fast customer traction b) there are multiple business models c) the potential for a strong brand and d) their is a likely path to acquisition. The challenge will be finding venture capital investors who see the potential vision of where Brayola can be taken and that its aligned with where Orit Hashay wants to take it…
[title color=”pink-vibrant” align=”scmgcleft” font=”ptserif” style=”italic” size=”scmgc-2em”]Long story short[/title]
I would focus on…
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- Determining and pursuing the next big expansion area for Brayola (Global domination?)
- Strategic Investors – potentially from the relevant fashion houses or if there are concerns about bias – strategic investors / advisors with strong fashion industry experience
- Seed Venture Capital companies – the usual cast of characters, the initial traction of Brayola should make this simple but not easy…
If you’d like to find out more about Brayola – go here: http://ww.Brayola.com
Brayola Founder: Orit Hashay