A Unique Approach to Fundraising: The Rippling Investor Memo
In the modern world of fintech startups, standing out from the crowd can prove to be extremely challenging. Many enterprises gain attention through their innovative product offerings or unique business models. Yet others make a name for themselves by defying conventions in their approach to fundamental business activities. One such revolutionary company is Rippling.
Highlighting Rippling’s Journey
Rippling, a name increasingly gaining recognition in the fintech industry, had an unconventional approach in their series A fundraising. Before we delve into the nuances of this approach, it’s important to know a bit about Rippling. The company offers a unique platform that seamlessly integrates payroll, benefits, devices, apps and more, all in one modern system that any company can utilize.
Defying Conventions
In 2019, Rippling managed to raise an astonishing $45 million in their Series A fundraising. The interesting twist? They had no formal pitch deck. Instead, the centrepiece of their fundraising materials was an Investor Memo, a simple document encapsulating the company’s pitch in a narrative format. This definitely wasn’t a typical move. Still, it further underlines Rippling’s aim to break from tradition, not just in their products and services but in their business practices too.
Why Did Rippling Omit A Pitch Deck?
Most would wonder why a company would decide to giggle the tradition of using a pitch deck for fundraising. After all, pitch decks are widely recognized as the most efficient way of conveying a company’s mission, vision, and strategy to potential investors. However, the effectiveness of a pitch deck is not solely dependent on its content, but also heavily influenced by the presenter’s skills. Not every founder is a natural speaker, and thus might not be able to deliver a compelling investor pitch deck.
Rippling’s Strategy: The Investor Memo
Rippling’s decision to use an Investor Memo, which elaboratively laid out their details in prose form, was not only unique but strategic. It allowed them to present their business idea and vision directly to the investors without the dependence on presentation skills. The founders’ ideas, plans, and goals for the venture were narrated in a structured, comprehensive, and easily understandable format. In a way, the Rippling Investor Memo, can serve as an excellent example for those wanting to create a pitch deck.
Lessons for Other Startups
The unconventional approach taken by Rippling may not suit everyone, but it does invoke some thoughts on ‘how to pitch a business idea‘. It’s a reminder that the ultimate aim is to share your company’s plans and ideas in the most effective manner, which doesn’t necessarily have to be through a traditional pitch deck. Startups looking out to make pitch decks can look at it as an alternative approach. At the end of the day, it’s about the most impactful way of conveying your vision, whether it’s a formal pitch deck, a simple investor memo, or something entirely unique.
Conclusion
In conclusion, Rippling’s success supports that there may more than one way to effectively communicate with investors. A well-crafted, comprehensive, and straightforward Investor Memo, like Rippling’s, could do just as good of a job as a dynamic pitch deck – maybe even better. It all depends on what best represents you and your startup.