Startsmart Startup event presentation

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This presentation was made for StartSmart event about angel investing and angels perspective to the investment target (ie. startup).

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Startsmart Startup event presentation

  1. 1. StartSmart ! Petri Lehmuskoski Co-Founder – Gorilla Ventures Oy @Petrileh
  2. 2. >85 % <10 %
  3. 3. • Petri Lehmuskoski, portfolio entrepreneur – Toptronics 1983 (exit 2005) – Topsoft 1985 – Turun Tietokeskus 1989 – Diggibag AB 2000 (exit 2005) – Gorilla Ventures 2012 • Education – Business College 1989 – eMBA (partially) 2004-2005 – Harvard Business School 2010
  4. 4. • Experience – Building turnover from 0€ to 120M€ – Managing organization from 1 person to 180 persons – Expanding operations from 1 country to 7 countries – Running multiple companies simultaniously – Largest singel deal 14M€ – Three time hours away from bankruptcy • Startup relevance – First ”angel” investment in 1988 – Seen x.xxx pitches – Analyzed 1.000+ startups – Invested in 30+ companies – Active in operational level in 6 startups
  5. 5. My mission: ”I am going to help 30 succesfull companies to be formed every year”
  6. 6. Areas to be covered • Why startups fail ? • What investors look at startups ? • What kind of investors there are ?
  7. 7. Startups five stages • Idea/Invention => Hallucination => Externally shared vision => Business validation => Innovation There are no shortcuts to success ! And money can distract you…
  8. 8. Each stage requires • Loads of learning – Product thingking – Customer development – Business model development – Team development – Different KPI’s (old metrics become vanity metrics) – Administration • And financing
  9. 9. Before you can run, you need to learn to crawl !
  10. 10. Theory Problem Solution Competition Market
  11. 11. Reality Problem Solution Competition Market
  12. 12. Competition 1. Do nothing 2. Other way to solve the problem 3. Do ourselves 4. Direct competition
  13. 13. ”The difference between the winning startups and those who lose is that the winners understand why customers buy. The losers never do.” Steven Blank
  14. 14. Areas to be covered • Why startups fail ? • What investors look at startups ? • What kind of investors there are ?
  15. 15. Problem • Whose problem is it ? – Users or customers ? • How many customers in major markets have the problem ? • Are there other ways to solve the problem ? • Has the problem been validated ?
  16. 16. Different worlds, different things Corporation Start-up Execution - ”Good sales person” - - Product/Market Fit - Can it work in theory ?
  17. 17. Added value • • • • How big is the pain ? How much money is involved if problem solved ? What are drawbacks (solving the problem) ? Do you meet one of the three ”must have conditions in value added ?
  18. 18. 3 ”must-have” conditions (G Moore, Crossing the Chasm, pg 102-103) • It enables a previously unavailable strategic capability that provides a dramatic competitive advantage in an area of prime operational focus • It radically improves productivity on an already wellunderstood critical success factor • It visibly, verifiably, and significantly reduces current total overall operating costs
  19. 19. Solution • Is you solution scalable in all areas – Technology, logistics, sales, team etc. • Is the solution solving the real problem • What does the solution need to be implemented ? • What does the execution require from team
  20. 20. Team • • • • • • • Do you have a team ? How experienced is your team ? Teams relevance to the problem ? How long you have been together ? Ownership split ? Do you understand what you need next in your team ? Are you capable of learning and evolving ?
  21. 21. Business potential • What is the actual business potential ? • How much money do you need to reach the potential – VC’s need >20M€ investments • What are your customer aquisition costs vs. customer lifetime value
  22. 22. Ask • • • • What stage are you at ? What are you going to achieve with the money ? How long will money last – can you deliver in time ? What is the long term financing plan ?
  23. 23. Areas to be covered • Why startups fail ? • What investors look at startups ? • What kind of investors there are ?
  24. 24. Different kind of investors • • • • • • Goverment Family, Friends, Fools Angel Investor Industrial VC VC Stock market
  25. 25. Different investor profiles • • • • Fools – nice hobby/I got rich Industry agnostic Industrial/Business investor Spray and pray
  26. 26. Know your investor • • • • What kind of exit strategy do they have ? What is their investment perspective (really) ? What kind of investments have they made ? Can they make additional investments ? – Investment period – Cash available • Who would be the manager responsible ? – How many companies in portfolio
  27. 27. Active investors role Find Build Exit • Securing to be DD ready • Product-market-fit development • Creating sence of urgency and execution excellence • Helping prioritisation and optimal market position • Educating founders to be business managers and recruiting key personnel • Funding • Strategy development and build professional board • Creating exit opportunities • Finding and managing M&A partners • Deal execution
  28. 28. Few tools
  29. 29. Validation board
  30. 30. The Petri Model Canvas Paying Customer Your Body text Problem Your Body text XYZ Company Unfair advantage Your Body text KPI’s Your Body text Early Buyers Your Body text Solution Your Body text Iteration #1 Market Your Body text Channels Your Body text Costs Your Body text 04-Jan-2013 Unique Value Proposition Your Body text Existing Alternatives Your Body text Customer Aqusition Cost Your Body text Customer Lifetime value Your Body text
  31. 31. Thank you ! Email: petri.lehmuskoski@gorillaventures.fi Twitter: @Petrileh www.gorillaventures.fi

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