Raising 3.5M PLN funding for a logistics startup
We prepared the company for talks with Venture Capital funds. We created a financial model and pitch deck that convinced investors of a valuation 20% higher than originally assumed.
Tatry Strategy Group helped LogiSmart get capital for fast growth. We focused on hard data and fixing the business model. The result is 3.5M PLN from a VC fund in 102 days.
The challenge
LogiSmart had an efficient warehouse management system, but their Excel finances didn't add up. The company was losing 82,400 PLN a month. Investors they spoke with earlier offered a low valuation because they didn't understand how the company intended to earn money in 2025. Management was losing time on empty meetings instead of closing sales. Specific answers were missing for tough questions about customer acquisition costs and net margin.
Our approach
We entered the client's office on February 12, 2024. Our principle is specifics instead of theory. For the first two weeks, we examined every invoice and contract. We removed unnecessary adjectives from the presentation for investors. We replaced them with hard facts about user base growth of 11.4% every month. We verify facts in 48 hours, so we quickly caught errors in calculations that could have destroyed the negotiations.
The solution
We rebuilt the financial model from scratch, showing a real path to profit. We prepared a so-called data room with documents funds ask for most often. We trained the CEO on defending the company's valuation. We chose 14 funds that were actually laying out money for logistics in the last quarter. Numbers don't lie, so we showed them clearly that LogiSmart would shorten loading time by 16 minutes on each car.
Results
The startup closed the funding round ahead of schedule. Thanks to better preparation, the company's valuation jumped by 2.3M PLN compared to the first offers.
Timeline
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February 2024Financial audit and identifying errors in operating costs.
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March 2024Building a new financial model and pitch deck.
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April 2024Starting talks with investors and defending data in the due diligence process.
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May 2024Signing the investment agreement and fund transfer.
"Tatry Strategy Group showed us where the cash was escaping. Investors stopped asking us about vision and started asking about numbers because we had them at our fingertips."