We worked together to develop an investor Value-Story that shows the profit opportunity.
Company: i-Mobile Access Technologies, Inc.
Industry: Media distribution
Situation: Define and show a growth story that will appeal to investors, and show the underlying value to consumers.
Success measure: Investors consider funding full-scale roll-out of the project.
For investors to “get it” they would have to accept two ideas:
- why the service offers a keen benefit to the 78-million D/HH market, for which individuals will pay $10 to $15 a month
- how the service translates into profit for iMAT.
In the Value-Story™ session, BentonsEdge worked with CEO Foster and CTO Samrat to develop the core elements of the story.
Early investors felt that iMAT should start small by offering just one channel in one city for a few hours a day. But iMAT contended that D/HH consumers, just like anyone else, need sufficient variety and convenience to change their media consumption habits.
iMAT’s launch plans call for five or more channels in three cities in short progression to achieve a compelling presence for consumers. True to their media model, iMAT conceived of two revenue sources: subscriptions and advertising.
Foster felt that a toe-in-the water approach, recommended by some investors, would only tip off competitors and prime consumers to jump to a more compelling option.
The challenge was to show the profit opportunity. Our approach was to turn around and portray the risk story as well, showing risk to profit in a tentative approach, and opportunity for profit in the full market entry.
New ventures are about potential for great returns. Is your story so timid that investors are sure to lose?
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