Careful Selection of Investors

• A number of experts highlight the importance of this practice.
• Y Combinator, a California-based startup accelerator, is running a Series A program to share its learnings about Series A funding rounds. In 2018 alone, it was able to help Y Combinator companies raise a total of more than $945 million across 95 Series A funding rounds, a 71% increase in amount raised and a 50% increase in the number of funding rounds relative to 2017. This accomplishment makes Y Combinator a reliable source for Series A fundraising best practices.
• According to Aaron Harris, a partner at Y Combinator, the best investors or partners are the ones capable of making quick, high-conviction decisions. They do not hold off to know what other investors are thinking or doing.
• They quickly respond to questions and follow up from meetings. They have a clear idea of the things they like and do not like.
• Harris advises founders to start with a pool of 15-20 investors and work their way through this pool before the actual round until they find the right investors. They should not share too much information, however, that these investors can already make a decision before fundraising even starts. The timeline for fundraising should be clearly communicated to these chosen investors.
•  Dave Bailey, a serial founder and angel investor who writes for California-based publishing network Medium, says it is wise for founders to start with their seed investors first. Founders should ask their seed investors if they will invest and how much they will invest. An unwillingness among seed investors to participate in Series A could be a bad sign.
• Bailey also highlights the importance of starting with investors who have a history of leading funding rounds. Some investors prefer to lead rounds, while some investors tend to just follow lead investors. Followers typically use a ‘wait and see’ approach, so they tend to participate only when there is already a lead investor.
•  Tim Eades, chief executive officer of California-based startup vArmour, has already successfully raised Series A money. For his startup's Series A fundraising, he worked to narrow down his list of potential investors to his top five targets.
• Ross Schibler, who have founded three Slicon Valley startups and have extensive Series A fundraising experience, says that when selecting investors, startups should focus on the question "Do I want to work with this partner and will they help me build a great company?"

Pitch Preparation and Practice

• Three individuals with extensive Series A fundraising experience highlight the importance of preparation when it comes to pitching.
• Practice makes perfect. Harris of Y Combinator highlights the value of pitch practice for founders seeking Series A funding.
• The pitch deck should be mobile-friendly because, according to Bailey, investors check email messages on their mobile phone 95% of the time. It should be “as clear, concise, and compelling as possible."
• It is crucial for a founder to thoroughly know the investor he or she is speaking with. He or she should learn beforehand the investor’s recent investments, network, job history, and personal interests. It will be easier for a founder to establish a human connection if he or she has this knowledge.
•  Use of storytelling techniques is advised as they have the ability to transform a pitch from a mere recitation of facts to an effective and compelling presentation.
• The pitch should demonstrate traction and include a clear description of the problem being addressed, the vision, the business metrics being used, the bottom-up market size, the reasons for fundraising, and the efforts being made to reduce risks.
• According to Pete Flint, managing partner at California-based early-stage venture firm NFX, investors expect a month-on-month growth rate of at least 10% and at least six months of consistent monthly growth.
• A one-sentence description of the company, similar to Uber’s “Tap a button, get a ride,” should be prepared. This one-sentence description will make it easier for investors to remember and talk about the company.

Careful Scheduling of Funding Round

• Three individuals, who are all knowledgeable in the area of Series A fundraising, point to the importance of timing fundraising wisely.
• Dave Bailey says that founders seeking Series A funding should time fundraising in a way that they are able to leverage spikes in revenue or usage and that they do not run out of money during the funding round.
• Founders with fewer than six months’ worth of money should either control costs or boost revenues. Raising Series A money could be quite a lengthy process, and running out of money in the middle of such a process could turn off investors.
• For startups with seasonal spikes in revenue or usage, it is important to time fundraising in a way that takes advantage of the momentum or upward trend in sales or usage. Bailey advises that founders play to their seasonality.
• Investors are attracted to startups that are capable of exceeding expectations. A startup that projects a 15% growth rate the following month and returns with a 20% growth rate is more attractive than a startup that just meets expectations.
• Bailey does not recommend raising funds during the Christmas holidays and the summer because investors flying to their holiday homes could make fundraising slower than necessary.
• Harris of Y Combinator advises founders to create a dynamic where “investors are forced to operate in parallel.” Each batch of pitches should, as much as possible, take place within a tight timeframe, say, a period of one to two weeks.
• Founders can tilt the environment or market to their advantage by setting the same starting point for a big set of investors. Doing so would prevent information from spreading too quickly through the investor network, prompt investors to decide and act without looking at other investors, and build a competitive dynamic among investors.
• Eades of vArmour advises founders seeking Series A funding to set a timeline of approximately five to six months.

Know Your Numbers

• Investors are more interested in how the business makes money, wins new customers, etc. In this regard, when seeking Series A funding, it is imperative to show investors how the business makes a profit.
• The business should also perform a Series A valuation, which determines the present value of the business. Investors need to know the value of the business they are funding.
• In 2019, the average Series A funding was $13 million, while the average startup valuation was $22 million. These figures show the numbers for valuing a Series A company during the funding.
• Factors to consider when valuing a company include its management, size, history, the potential for growth, risk, etc. At this stage, businesses can hire valuation experts to perform a professional valuation of the business.
• Since Series A funding is often used to grow the business, experts recommend that only a small portion of the business (10% — 30%) is sold to investors to enable the founders to retain majority control.

Find the Right VC

• When identifying the right VC, it is recommended to examine the whole firm and its core competencies, then choose those offering funding in areas the business operation.
• Next is to focus on getting a warm introduction. Get your warm introduction via a founder, investor, or VC that has previously worked with the target VC.
• Get involved with venture-funded startups succeeding in your niche and research the active partners who invested in the firm. Then get involved with them through local meetup or social media sites like LinkedIn and Twitter.
• A core critical skill to utilize at this stage is networking. Most experts argue that networking is a skill all entrepreneurs must have to excel in the market, which is why founders need to fuse both networking and warm introduction skills when searching for a VC.
• Founders can also capitalize on the new platforms that connect the supply of VC capital and entrepreneurs. Such platforms are available at Crunchbase or Signal by NFX.

Research Strategy

Assemble Testimonials and Case Studies

• People value other people's thoughts and testimonials are important. Word-of-mouth is still the best way to promote a product.
• Testimonials establish credibility.
• The best way to approach and frame testimonials from a selling standpoint is to present them as an experience rather than simply trying to sell a product.
• Testimonials have the highest rate of effectiveness when it comes to marketing, being considered 89% effective in motivating buyers.
• A company's customers are their best salespeople. Case studies created from the happiest customers highlight the benefits of products.
• Use case studies to show how pain points experienced by previous customers can be overcome. This highlights to the business how the product being sold will assist in overcoming issues and challenges being faced.

Show Product Differentiation and Value

•  Return on investment (ROI) is a key performance indicator for any business. Thus, there is a need to quantify what difference the hardware will make to the customer’s bottom line, how the hardware can improve their revenue, or how the hardware adds value to their efforts.
• There are two main ways to add value as a B2B hardware seller: reduce the company's production costs, or improve the viability of their product.
• Including "value adds" and bundled services also increases the perceived value of a hardware product. Support help desks, installation, maintenance are all strong bundled services that can increase sales.
• Forbes reports that including options is the best practice when it comes to bundling. Total hardware sales increased by 100,000 units when bundles were offered. However, when customers were only offered bundles, sales fell.

Get Feedback

•  Active listening is key.
• Ask what the businesses' problems are, then explain how the hardware can solve those specific problems.
• Know the customer's pain points and ask as many questions as possible to gain a full understanding of their needs.
•  Take note of all feedback that the customer offers as well as any features they are looking for.
• Actively listening demonstrates respect for the customer, builds rapport, and avoids miscommunication. It also allows the salesperson to fully understand the business' needs and therefore puts them in the best position to sell the hardware because they know what aspects of the hardware to highlight.

Research Strategy

Make Sure the Product Works in Different Scenarios

• It is important to test the product to work in a variety of scenarios and conditions in order to make sure that it works as intended. There is a lot at stake if a product does not perform as advertised when marketing to established companies and businesses, so there is little room for error when approaching them with a product.
• Product testing can be done by using engineering simulation software, which will analyze the performance of the product in various real world conditions.
• Simulation also helps in the quick development of prototypes based on feedback from clients. Products can be customized for different clients, and features requested by clients can be tested to see if they will work well in the real world through the use of virtual engineering simulation.

Check How the Product Affects Different Departments

• The decision to buy a product is not made by a single department or individual, so this should be taken into account when making a pitch.
• It is important to think of the different departments in a company where the product can be applied. Afterwards, pitches should be made to each of these departments to show them how they can use the product.

Research Strategy

1. Invest in B2B Digital Marketing Platforms

• Digital marketing platforms bring together manufacturers, service providers and buyers in one place. While manufacturers and providers get to showcase their products, services and reputation; buyers get a comprehensive view of the different companies and can check which one fits their needs.
• "74% of B2B buyers prefer to buy online" through self-service websites, so a digital platform is the best way to reach new customers. Having access to a community that brings all the stakeholders together makes marketing easier because companies can easily and quickly access their target audiences.

2. Interact With Customers Across Multiple Channels

• 89% of all B2B buyers do their research online before they make a final purchase decision. It is important for marketers to meet them where they are, across different channels such as blogs, social media, mobile and web, among others; so that they can get a consistent experience no matter which channel they choose to access the information from.
• Content marketing is important because it provides a promotional channel for oil and gas companies. In addition to a website, having a detailed blog about the company's oil and gas products and how they solve specific problems of the target audience has a higher chance of grabbing the target audience's attention. It also verifies a company's expertise, builds its brand and sets it apart from the competition, which is stiff in the oil and gas industry where different companies offer very similar products. 
• Social media is a great way to launch and promote products and solutions, and also to engage directly with target audiences.

Research Strategy

Perimeter Security

• The use of DAS fiber optic sensing is common and used in multiple applications, primarily due to its cost-effectiveness, immunity from electromagnetic interference and use of a single interrogator.
• Sensing is one of the most common features of distributed acoustic sensing (DAS) and is based on coherent Rayleigh scattering. DAS fiber optic sensing is common in perimeter security and is widely used at airports, other civilian assets, seaports, government installations, military installations, oil refineries, power plants, hazardous areas, and game reserves.
• The use of DAS is particularly common among security personnel because of its real-time detection mechanism that helps deter intruders. More importantly, when combined with relevant technologies, DAS fiber sensing enables security personnel to respond and prevent attempts of intruders from gaining unauthorized access.
• The use of DAS fiber products is also common in border environments, such as Tijuana and San Diego in the United States and Mexico. DAS fiber products are also widely used in urban areas to provide subterranean activity detection in high-risk areas, especially those with high incidences of contraband trafficking.
• The use of DAS fiber optic and its products is being adopted by other industries because of its ability to operate even after a fiber cut.  

Transport Monitoring and Tracking Solutions

• DAS fiber optic has important applications in the transport industries, especially for the rail transport industry, where it is used to observe the health of track and trains.
• The products are widely used as monitoring based solutions in the transport industries. The use of DAS fiber optic in transport industries is based on DAS technology’s unique ability to convert fire optic cable into an array of distributed sensors, often used to monitor road and rail networks.
• In the railway transport sector, DAS fiber optic and products are used to improve railway security. This includes the detection of third party activities and the intrusion linked to cable theft. Railway companies also uses DAS fiber optic technology to detect landslide events, rockfall, and train condition monitoring.
• DAS fiber optic is used in the road industry to deliver real-time traffic. With the help of monitoring applications, it is easier for those working in the road industry to monitor the average traffic speed, detect congestion, and count vehicles and flow rate.
• The DAS fiber optic products offer significant operational advantages and performances to those in the transport industries.

FIRE DETECTION

• Industry: Fire and security 
• Distributed temperature sensing fiber products are used in the detection of fire hazards to prevent human casualty and asset damage. The installed DTS helps in detecting different types of fast fires, traces the precise location of the fire, and monitors fire size and spreading accurately.

Usage

• The DTS is installed in required special hazard locations such as tunnels and conveyor belts to track rapid changes in the temperature level in real-time.
• When the system detects a fire hazard, it sends a signal by raising alarm as well as provides actionable data.
• Depending on the length of the heat sensing cable, the DTS can detect fire hazards from multiple kilometers.

POWER CABLE MONITORING

• Industry: Power, energy, & utilities 
• Distributed temperature sensing fiber products are typically used in the areas of buried cable monitoring, tunnel cable monitoring, subsea power cable monitoring, and overhead cable monitoring.

Usage

• The applications for distributed temperature sensing in power cable monitoring includes real-time thermal rating of cables or dynamic cable ratings, hot-spot detection, fire detection for cables, delivering operational status, and condition assessment.
• The DTS is either placed inside the power cable itself or connected to the surface of the power cable configuration for observation or detection.

RESEARCH METHODOLOGY

Seismic Activity Monitoring

• Distributed acoustic sensing (DAS) can be used as seismic activity monitors according to a study done by a team at Lawrence Berkeley National Laboratory in 2019. According to the research, DAS technology can be used to detect earthquakes thousands of miles away. DAS is an easy method of monitoring earth's near-surface. The study was done on a 27-kilometer stretch for seven months, where seismic data was obtained at 500 times every second per every two meters. DAS has a sensitivity to earthquakes with a magnitude between M4.4 to M8.1.
• The hair-thin glass fibers used in DAS technology serve as seismic detectors. DAS can sample seismic waves every few meters and monitor seismic activities up to 7757 kilometers. The use of DAS technology can do geophysical monitoring of offshore seismic activities. Across the globe, DAS the development of seismic networks up to continental scales.
• Studies indicate that DAS provides similar data to above-ground seismic stations at a cheaper cost. DAS technology can be used as an early and faster means of detecting earthquakes. Many regions around the world that are earthquake-prone do not have expensive seismic stations making the DAS technology a low-cost way of monitoring seismic activities in these regions as millions of kilometers of fiber-optic cables are found across the world.
• The use of DAS technology to monitor for seismic signals generated ocean waves can help predict offshore seismic hazards, ocean movements, and underwater volcanoes according to research done at California’s Monterey Bay. The study discovered geological faults that were not known previously and could detect seismic signals formed by ocean waves.

Soil Temperature Sensors

•  Soil temperature is vital in the regulation of hydrobiogeochemical processes. Soil temperature is affected by various climatic factors such as surface water, snow insulation, and water and heat fluxes in the subsurface. The acquisition of soil temperature is limited by difficulties in data management, expensive equipment, and complexities in deployment. Distributed temperature sensing (DTS) offers a promising alternative for soil temperature monitoring, according to numerous studies carried out.
• DTS can offer continuous measurement for many kilometers over thirty years as the cables can withstand repeated use and temperatures up to 150°c. Temporal resolution can be set in seconds or hours, depending on the required thermal precision.
• The technology was able to establish permafrost temperature in a study conducted in the Arctic. DTS can monitor soil temperature in extreme and remote environments.
• The self-testing aspect by DTS eliminates the need to take soil to the laboratory to verify recorded results. The DTS fiber cable is 3mm in diameter; hence it can respond quickly to any temperature changes.

Research Strategy