Derisking A Business Venture - TechAviv - January 2009

De-Risking A Business Venture Increasing Value by Decreasing Assumptions Steve Barsh stevebarsh.com  blog.stevebarsh.com steve@barsh.com  +1.215.888.2101  twitter: sbarsh

3 – 7 Key Assumptions stevebarsh.com

Common Assumptions
Demand (huge problem)
Market size
Feature set
Positioning / differentiation
Product development
Pricing
Sales cycle
stevebarsh.com
Competition
Team
Execution
Marketing
Financials & forecasts
Capital
Exit value

Stop Waving, Start Pointing! stevebarsh.com

De-Risking
Identify risks & assumptions
Before or while developing product
Before pitching
De-risk the risks
stevebarsh.com

De-Risking Goals
Convert assumptions into knowledge
At the lowest cost
As quickly as possible
Consume intellectual capital before venture capital
Decrease assumptions to increase value
stevebarsh.com

Experiment / Test & Research! stevebarsh.com
Hypotheses to prove
Valid experiments to prove or disprove
Release early, measure, learn, iterate
Research
Valid proxies you can use
So, it’s / were just like ____
Be ready to defend

3 Main Takeaways
Key assumptions
“ Experiments” to test
Convert assumptions into knowledge
Low capital
Increase value
stevebarsh.com

See Also
Redeye VC Blog: Failing Cheaper by Josh Kopelman, First Round Capital.
Common Mistakes Made by Entrepreneurs by Mark Henricks.
How To: Raise Money in a Down Economy by Eric Ries at KPCB.
stevebarsh.com

De-Risking A Business Venture Increasing Value by Decreasing Assumptions Steve Barsh stevebarsh.com  blog.stevebarsh.com steve@barsh.com  +1.215.888.2101  twitter: sbarsh

Derisking A Business Venture - TechAviv - January 2009

by Steve Barsh on Jan 07, 2009

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Derisking A Business Venture - TechAviv - January 2009 — Presentation Transcript