Lean start-ups successes and failures

1. Learnings from
startup best
practices
Antti Kosunen
Nestholma Accelerator
Butterfly Ventures
antti@butterfly.vc

2. An# Kosunen – Co-­‐Founder, Investor
• Butterfly Ventures
• Nesthoma Accelerator
• Several succesful exits, 2 IPOs, raised
+€100m, Invested in +30 companies,
managed 18 patent litigations
• 2-years in the US, 2-years in Asia

3. How do you build great
products in startups?

4. Screw it,
just do it
- Richard
Branson

5. Half of what separates
the successful
entrepreneurs from the
non-successful ones is
pure perseverance.
- Steve Jobs, Co-founder, Apple

6. That’s all
you need.
Right? Well…

7. Fact is that
most startups fail.
What can we
learn from them?

9. DON’T SCALE TOO EARLY
Don’t focus on Scalability
Don’t add too many Features
Validate… Validate… Validate

10.
Startup
genome
infographic

11. What are some of the
best practices for
startups?

12. You need a
great idea,
but…

13. Most people think it’s
all about the idea.
It’s not. EVERYONE
has ideas. The hard
part is to execute on
the idea.
- Mark Cuban, serial
entrepreneur

14. An idea
can be done in
million+ ways
There were tens of social media
network services before Facebook

15. Trust your
instincts or
ask advice
from an
expert?

16. What about
asking customers?

17. If I had asked people
what they wanted,
they would have said
faster horses.
-Henry Ford

18. Want
Faster horses
Problem
Traveling takes too long
Need
Better and faster transportation
Solution
Mass-produced car

19. Make sure
you really understand
what is the problem
that is worth solving
Ie. customers think that it’s worth their time and/or money

20. 1
Validate
your understanding
of the problem

21. 2
Validate
your solution
to the problem

22. 3
Validate the
value and scalability
of your solution

23. Validate
1
2
your understanding your solution to
of the problem
the problem
3
the value and
scalability of your
solution

24. IDEAS
And this is
how you do it
BUILD
LEARN
Repeat as
many times
as needed
Lean Startup
Build-Measure-Learn -loop
CODE
DATA
MEASURE

25. There’s no need to
be
feature complete

26. If you are not
embarrassed by the
first version of your
product, you’ve
launched too late.
- Reid Hoffman, LinkedIn
founder

27. Minimum
Viable Product
Maximum amount of
validated learning
about customers
with the least effort

28. Video showing what
the user experience
will be
Simple WordPress
blog with daily deals
and minimal backend
running on a Mac.
Hand-collected links
to the world wide
web
Single plane, single
route, no routing, but
with great service
in
ly
(Well, maybe an MVP on
spirit)
MVP’s come big and small

29. The Pivot:
Sometimes
it’s good to
change direction

31. The pivot.
It used to be
called
‘the fuck-up.’
- Marc Andreessen,
Netscape Founder, VC

32. Some of the
fuck ups:

33. Are you making a
difference?

34. “How disappointed would you
be if you could no longer use
our product?“
“Very Disappointed”
needs to be more than
Source: Mariya Yao, Xanadu
Mobile
40
%

35. “How likely are you to
recommend us to your friends?"
Net
Promoter
Score
(-100 to +100)
Source:
Mariya Yao, Xanadu Mobile
+70
+50
Top companies
Google, Amazon
etc.
Successful
companies

36. Are you?

37. There are good
tools to help you
along the way

38. Here’s what
your notes
should say

39. NISP
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