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When the Boardroom is Bits

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  • 1. When The Boardroom is Bits
    Steve Blank
    www.steveblank.com
    Twitter: sgblank
  • 2. This Talk
    • 10 Things We Learned in the Last Year ………………………
    • 3. Experienced Advice Matters
    • 4. Solving the Early Stage-Experience Gap
    • 5. The Boardroom is Bits
  • First
    10 Things We Learned in the Last Year
  • 6. #1
    Business Schools turned 300 years of business experience into an MBA
  • 7. #1
    Business Schools turned 300 years of business experience into an MBAMBA = Masters of Business Administration
  • 8. #2
    Tech Entrepreneurship + Venture Capital is ~50 Years OldStartups are Smaller Versions of Large Companies
  • 9. #2
    Tech Entrepreneurship + Venture Capital is ~ 50 Years OldStartups are Smaller Versions of Large Companies
  • 10. #2
    ×
    Tech Entrepreneurship + Venture Capital is ~ 50 Years OldStartups are Smaller Versions of Large Companies
    oops
  • 11. #3
    Companies execute business modelsStartups search for business models
  • 12. #3
    Companies execute business modelsStartups search for business models
  • 13. #3
    Companies execute business modelsStartups search for business models

  • 14. #4
    A startup is a temporary organization designed to search for a scalable and repeatable business model
  • 15. #5
    Startups need their own tools, different from those used in existing companies
  • 16. #5
    Startups need their own tools, different from those used in existing companies
  • 17. #6
    Customer Development = process to searchBusiness Model Canvas is the ScorecardAgile Engineering is How We Build Startups
  • 18. #7
    Customer Development =process to searchBusiness Model Canvas =the ScorecardAgile Engineering is How We Build Startups
    Value-Driven
  • 44. #8
    Customer Development is the process used to searchBusiness Model Canvas is the ScorecardAgile Development is How We Build Startups
  • 45. #9
    Startups that pivot 1 or 2 times:
    • raise 2.5x more money
    • 46. have 3.6x better user growth
    • 47. 52% less likely to scale prematurely
    than startups that pivot more than 2 times or not at all
    Startup Genome Report
  • 48. #9
    Startups that pivot 1 or 2 times:
    • raise 2.5x more money
    • 49. have 3.6x better user growth
    • 50. 52% less likely to scale prematurely
    than startups that pivot more than 2 times or not at all
    Startups that have:
    • helpful mentors
    • 51. listen to customers,
    • 52. learn from startup thought leaders
    Raise 7x more money and have 3.5x better user growth
    Startup Genome Report
  • 53. #10
    We’ve cracked the code in teaching entrepreneurship
  • 54. #10
    We’ve cracked the code in teaching entrepreneurship
    http://steveblank.com/category/lean-launchpad/
  • 55. What Have We Learned in the Last Year?
    Startups ≠ MBA toolset
    Startup Toolset
    Customer Development
    Business Model Canvas
    Agile Development
    We have real data that this works
    A Better Way to Teach Entrepreneurship
  • 56. What’s Next?
  • 57. Hypothesis:Experienced Advice Matters
  • 58. Hypothesis:Experienced Advice Matters
  • 59. You1board at a time
  • 60. You1board at a time
    VC’s6 - 12 boards at a time
  • 61. You1board at a time
    VC’s6 - 12 boards at a time
    X
    Avg 4 years per board
  • 62. You1board at a time
    VC’s6 - 12 boards at a time
    X
    Avg 4 years per board
    X
    2 VC’s per board
  • 63. You1board at a time
    VC’s6 - 12 boards at a time
    X
    Avg 4 years per board
    X
    2 VC’s per board
    =
    ~50-100x Pattern Recognition
  • 64. You1
  • 65. You1
    VC’s50 - 100
  • 66. You1
    VC’s50 - 100
    (Discount for 7 Deadly Sins)
  • 67. 50 - 100 ≥ 1
  • 68. 50 - 100 ≥ 1
    The Early Stage-Experience Gap
  • 69. Solving the Early Stage-Experience Gap
  • 70. Venture Funded companies have boards
    Angel Funded companies often do not
    Experienced Advice is sparse outside of technology clusters
  • 71. Venture Funded companies have boards
    Early Stage companies often do not
    Experienced Advice is sparse outside of technology clusters
  • 72. Venture Funded companies have boards
    Angel Funded companies often do not
    Experienced Advice is sparse outside of technology clusters
  • 73. Why Have a Board Meeting?Investor
    Fiduciary Responsibility
    Company has asymmetric information
    Board has legal responsibility to their Limited Partners
    Maximize Investment Potential
    Board has asymmetric knowledge 50-100x experience
    Good board asks hard questions
  • 74. Why Have a Board Meeting?Founder
    Board Guidance
    50-100x more experience = Pattern recognition
    Multiple opinions across VC’s
    Board Network
    Customers, Partners, Recruiting, Financing
    Obligation
    It came with the check
  • 75. Board Meetings Are Heavyweight Processes Antithesis of Lean
  • 76. Board Meetings Are Heavyweight Processes Antithesis of Lean
  • 77. Board Meetings Haven’t Evolved
  • 78. We Act Like It’s the 19th Century
    Why do we need to get together in one room?
    Why do we need to wait a month to see progress?
    Why don’t we have standards for what you want?
    Why haven’t we adopted the tools we build/sell?
  • 79. How to Run a Board Meeting
    Logistics
    Send out board materials 2 days before, have board dinner
    Approve minutes, stock grants
    Business Highlights/Lowlights
    summary of key events since last meeting
    Financials versus Budget
    waterfall charts
    Management asks the board to help
    strategy, markets, key hires, introductions.
    Executive session
    Meet without management to discuss performance
  • 80. How to Run a Board Meeting
    Logistics
    Approve minutes, stock grants
    Business Highlights/Lowlights
    summary of key events since last meeting
    Financials versus Budget
    waterfall charts
    Management asks the board to help
    strategy, markets, key hires, introductions.
    Executive session
    Meet without management to discuss performance
    Misc
    Send out board materials 2 days before, have board dinner
    Why?
  • 81. What’s Wrong With a Board Meeting?
    Time between meetings (every 4-6 weeks)
    Strategy-to-tactic-to implementation lag
    Often no follow-up on the outcomes
    Diffuse board member attention (sits on 6-12 boards)
    Punctuated Exec Staff Performance
    “The Get Ready for the Board Meeting” drill
    It’s often a performance rather than a snapshot
    No standards for what each side does
    What is the entrepreneur supposed to be doing?
    What are the board members supposed to be contributing?
  • 82. What’s Wrong With a Board Meeting?
    Time between meetings (every 4-6 weeks)
    Strategy-to-tactic-to implementation lag
    Diffuse board member attention (sits on 6-12 boards
    Punctuated Exec Staff Performance
    “The Get Ready for the Board Meeting” drill
    It’s often a performance rather than a snapshot
    No standards for what each side does
    What is the entrepreneur supposed to be doing?
    What are the board members supposed to be contributing?
    Why?
  • 83. Solution:Make The Boardroom Bits
  • 84. We Can Do This Via the Net
  • 85. We Can Do This Via the Net
    24/7
  • 86. We Can Do This Via the Net
    Connecting Advisors to/from Anywhere
  • 87. Focus on What’s Important
    It’s about the search for the business model
    Not income statement, cash flow, balance sheet
    Advice/Guidance about metrics around the search
    What are the Business model hypotheses?
    What are the most important hypotheses to test now?
    Progress of validating each hypotheses
    What are the iterations and Pivots – and why?
  • 88. Continuous Information Access
    Founders / mgmt team invest 1 hour a week
    Structured blog
    Unstructured data
    Formal business model canvas
    Real-time advisor/board feedback
  • 89. We Made Students Blog Their Progress
  • 90. How?
    Customer Development
    The Process
    Narrative
    Interviews
    Surveys
    Videos
    Prototypes
    Business Model Canvas
    Scorekeeping
    Real-time Feedback
    Physical Reality Checks
    Skype
    Face-to-face
  • 91. We Made Students Blog Their Progress
    It Changed Everything
  • 92. Interview
  • 93. Photos
    Videos
  • 94. Surveys
  • 95. Interview
    & Photos
  • 96. Competitive Analysis
  • 97. Key Findings
  • 98. A/B Test Results
  • 99. Key Question
  • 100. Strategy
  • 101. Business Model Canvas as the Scorecard
  • 102.
  • 103. Business Canvas Change Progress
    1
  • 104. Business Canvas Change Progress
    2
  • 105. Business Canvas Change Progress
    3
  • 106. Business Canvas Change Progress
    4
  • 107. Business Canvas Change Progress
    5
  • 108. Business Canvas Change Progress
    6
  • 109. Business Canvas Change Progress
    7
  • 110. Demo
    Ben Mappen
    Lean LaunchLab
  • 111. Product Demo
  • 112.
  • 113. CANVAS diagram is interactive and “stateful”
  • 114. CANVAS diagram is interactive and “stateful”
    Enter your hypotheses here
  • 115. CANVAS diagram is interactive and “stateful”
    Test your hypotheses and
    record learnings in blog format
  • 116. CANVAS diagram is interactive and “stateful”
    Test your hypotheses and
    record learnings in blog format
    Interviews
    Surveys
    Videos
    Photos
    etc
  • 117. CANVAS diagram is interactive and “stateful”
    Test your hypotheses and
    record learnings in blog format
    Invite your advisors and investors to your project
  • 118. CANVAS diagram is interactive and “stateful”
    Test your hypotheses and
    record learnings in blog format
    Invite your advisors and investors to your project
    They can view progress
    by flipping thru your CANVAS diagrams
  • 119. CANVAS diagram is interactive and “stateful”
    Test your hypotheses and
    record learnings in blog format
    Invite your advisors and investors to your project
    They can view progress
    by flipping thru your CANVAS diagrams
    They can post feedback and leave comments inline
  • 120. CANVAS diagram is interactive and “stateful”
    Test your hypotheses and
    record learnings in blog format
    Invite your advisors and investors to your project
    They can view progress
    by flipping thru your CANAVAS diagrams
    They can post feedback and leave comments inline
    Get email alert when new
    feedback comes in
  • 121. CANVAS diagram is interactive and “stateful”
    Test your hypotheses and
    record learnings in blog format
    Invite your advisors and investors to your project
    They can view progress
    by flipping thru your CANAVAS diagrams
    They can post feedback and leave comments inline
    Get email alert when new
    feedback comes in
    The Lean
    Board Meeting
  • 122. Sign up for private beta (FREE)
    http://www.leanlaunchlab.com
    @leanlaunchlab
    Ben Mappen
    benmappen@gmail.com
  • 123. What Does this Change?For Angel-Funded Startups
    Angel funded startups can now get experienced advice
    No longer requires board commitment for involvement
    Encourages investors who need visibility
    Ends repetition at each investor coffee
    Turns adhoc startups into strategy-driven startups
    Invites investor participation in the process
    Professionalize the “throw it against the wall and see if it sticks”
    Highly time-efficient for investor and founders
    Eliminates Geography as a barrier to investment!
  • 124. What Does this Change?For VC’s and Angels
    For the first time a structure for “search”
    Real-time monitoring of startup progress
    Zero-lag for coaching and course-correction
    Immediate follow-up on board meeting outcomes
    Allows a single VC to multiply their reach and/or depth
    Eliminates Geography as a barrier to investment!
  • 125. Show Me the Money
  • 126. It’s about time!
    Email me
    jdf@mdv.com
  • 127. Great Experiment
    Email me
    ann@floodgate.com
  • 128. This Solves A Real Problem
  • 129. This Solves A Real Problem
    I thought it was such a good idea I Just funded the Lean LaunchLab
    Email me:
    shawn@menloventures.com
  • 130. Lets experiment with the idea
    Now at Gould Investments
    Email me:
    Kathryn@gouldinvestments.com
  • 131. Wouldn’t miss trying this!
    Email me:
    eric@ingroup.com
  • 132. Thanks

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