The IDEA Center is excited to share the work of our team as we seek to accelerate new ventures at the University of Notre Dame. Each week, we will be sharing a new project and how our team looks to test the idea and the potential market opportunities for projects. Our goal is to run 100 market tests on University projects looking to grow and raise funding, to de-risk these projects for potential investors. We are looking to understand the metrics that matter for new companies, and gain insight into their growth potential. If you have any insights as to the test we will run or recommendations on how to improve, connect with us here!
Listen in to today's podcast as Matt Gardner and Mitchell Kokko break down the market test for a student startup called Resonado. Resonado is a student-founded consumer electronics/technology company specializing in innovative speaker technology that redefines the entire audio industry. Since its incorporation in May 2017, Resonado raised over $15,000 in October via Kickstarter, was the recipient of a High Potential Startup Grant of $25,000 from Elevate Ventures in November, and is currently raising a round of $500,000 for the 12-month runway through Elevate Ventures and the Idea Center.
Some important things to note as we discuss the test that is planning to be run for Resonado.
- The consumer electronics industry benchmark average is CAC of $20.00 for a well-established brand. If Resonado could hit this benchmark CAC, its products are scalable.
Resonado will measure the following items to validate its project:
Total number of customers acquired (by each source)
Total sales revenue generated (by each source)
Expecting 180 customers with the expense of $4,000: CAC of $22.22
At the end of this test, the goal is that Resonado has a clear understanding of their CAC and can show investors the potential for growth.