Do you want to learn how to play a musical instrument? If so, you will likely have to either enroll in a music school or take private lessons. Music school, like any other school, is expensive with tuition, supplies, your instrument, private tutoring, etc. Private music lessons are even more expensive because of the one-on-one format. How else can you learn how to play a musical instrument? One simple solution is to go to YouTube and find as many videos as you can on how to play a certain instrument. But how can you know that these video lessons are technically correct or accurate? The answer is that you can’t, especially if you’re a novice musician.
Netflix for Learning Music
This young entrepreneur ran into the same problem when he wanted to learn music. Instead of accepting the status quo, he created his own solution. Academy.FM works on the same content curation model as Netflix. They go out and find and purchase (or license) the very best musical learning content they can find. Then they offer unlimited viewing of these high quality and highly accurate videos for just $15 a month.
A B2C Success in Atlanta
In a very short time, from just $200 of start up cash, Academy.FM has earned more than 7,000 paying monthly customers and over $140,000 in monthly recurring revenue (MRR). So why is it that nobody has ever heard of this very successful early B2C start up in Atlanta?
It may be because Stephen, the founder, has been heads down building his business. Now he’s considering raising some cash to expand and scale. They will use the cash to acquire more content for more different instruments to expand their offering to new audiences. That’s why Stephen came to Pitch Practice a few weeks ago.
The Ask: What Do You Need?
In his first pitch, he didn’t ask for anything. He didn’t think he needed anything. When we engaged in discussion about his pitch, that’s when we learned that he’s considering raising investor capital to scale. He knows, from previous experience, that if he invests a certain amount of money in new content, he can generate 4-5X that amount in new recurring revenue.
Now he’s asking for what he needs: introductions to potential investors now, so that when he’s ready to raise that cash, they’ll know him and he’ll know them.