Taking Your Startup to the Next LevelOne CEO’s Story – April 1st, 2011Doron Reuveni  |  CEO & Co-Founder  |  doronr@utest....
Who We Are<br />37,000+ professional testers from 174 countries<br />Thousands of<br />test cycles<br />Raised $20.5MM fro...
Sample Customers<br />2<br />
What We Do<br />A suite of in-the-wild testing services for startups and big brands<br /><ul><li>Real-world testing of bro...
Scalable, on-demand access to professional testers with the geographies and real-world infrastructure used by your consume...
On-demand usability experts to develop and manage usability testing </li></ul>Ux<br />Ld<br /><ul><li>Provide live load, s...
Partner with leading synthetic load tools companies (notably SOASTA)</li></ul>Sc<br /><ul><li>Utilizing white hat security...
Probing for most common security & privacy vulnerabilities</li></ul>Lc<br /><ul><li>Real-world localization validation usi...
Enables flexible and scalable addition of localization support on demand</li></ul>3<br />
<< BUT LET’S REWIND<br />
How Did We Get Here?<br />Knew testing space well<br />Understood the pain<br />Had experienced the pain, cost and frustra...
The “Aha” Moment<br />Premise:  What if we moved testing into the wild so it would be closer to the end users of an app? <...
EARLY DECISIONS ARE KEY<br />
Market To Go After First<br />1st Key Decision:  Functional or Usability Testing? Trying to do both at once was too big<br...
2nd Key Decision:  Whether to bet on something as unproven as crowdsourcing<br />9<br />
3rd Key Decision: How to turn a crowd…<br />10<br />
Into a predictable, orderly community?<br />11<br />
KEY STARTUP LESSONS<br />
1. Focus Is Critical<br />When things are going well, opportunities abound<br />Stay on the critical path<br />We say ‘no’...
2. Just Do It<br />While you’re off refining your business plan, someone else may be launching your idea<br />Finalize you...
3. Stay Lean<br />Initially, we even outsourced software development to maximize speed & minimize cost<br />15<br />
4. Expect The Unexpected<br />Business model maywill evolve<br />Be ready to iterate on all fronts<br />uTest created a ne...
5. Make Some Noise<br />17<br />Awards<br />Media Coverage<br />
FUND-RAISING:  LESSONS LEARNED<br />
Start Small<br />Consider angels – raise the money absolutely needed to safely get you to your next phase<br />Take a bigg...
Raising VC Funds<br />My Lesson:  I went to VCs too soon<br />VCs Can Help With: <br />Refine your idea, business model, g...
When Choosing VCs<br />After making good progress with your seed money, good VCs complement angels will help you<br />Make...
Negotiating With VCs<br />Create competition – to get the best terms, never rely or focus on only one VC<br />Terms matter...
ABCs of Funding Rounds (for uTest)<br />Seed & A round<br />Prove the concept (technology, basic model)<br />Find & serve ...
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uTest Dogpatch labs

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uTest CEO Doron Reuveni's presentation for Dogpatch Labs, 2011

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  • 20 seconds: We talked briefly about uTest, our community of testers, the types of apps we test, and glanced at our customer base
  • 30 seconds: We briefly introduced the types of companies we help test their web and mobile apps…From our early days working with startupsTo our more recent expansion into larger brandsTo our growth in serving retailers and e-tailersTo major media brandsTo international firms
  • 45 seconds: We briefly covered the types of testing services we offer through our community
  • First talk about your background in software development, managing large deliveries to big enterprise customers (banks to airlines). You faced these issues yourself.
  • 10 seconds
  • 10 seconds
  • 10 seconds
  • Quick story about how/why you chose outsourcing first; your experience
  • Started with a pay-per-bug model; Didn’t work well for customers or testers; Fixated on bugs instead of holistic value; Elevating the message was challenging; Packs, subscriptions, etc.
  • 30 secondsAs a start-up, it’s critical that we spread the word about uTest and crowdsourced testing.Fortunately for us, our story has been well-received by opinion-leaders from TechCrunch, Wired, Forbes and USA Today.We’ve also received awards in the past year from Gartner, InformationWeek, Mashable and AlwaysOn
  • Tell the story of how you originally wanted to raise 750K but it became a 2.2MM round
  • Anecdote – tell the story of how the first VCs all turned you down at the beginning for different reasons (can build community, but customers won’t come; can get customers, but can’t build community, etc.)
  • Late 2008, NASDAQ crashed - Fortunate to be in late stages with 3 VC firms
  • Always involve a lawyer when negotiating; There are firms that are entrepreneur friendly and some that are not
  • We now know that if we increase our marketing &amp; sales spend by X, then we can achieve Y revenue growth
  • 15 seconds: We introduced the idea of crowdsourcing and how it’s disrupting a number of different industries
  • uTest Dogpatch labs

    1. 1. Taking Your Startup to the Next LevelOne CEO’s Story – April 1st, 2011Doron Reuveni | CEO & Co-Founder | doronr@utest.com<br />
    2. 2. Who We Are<br />37,000+ professional testers from 174 countries<br />Thousands of<br />test cycles<br />Raised $20.5MM from top VCs<br />Hundreds of elite recurring customers<br />Public-facing web, desktop & mobile apps<br />Enterprises, startups, universities & NPOs<br />1<br />
    3. 3. Sample Customers<br />2<br />
    4. 4. What We Do<br />A suite of in-the-wild testing services for startups and big brands<br /><ul><li>Real-world testing of browser, device, OS and security tool compatibility
    5. 5. Scalable, on-demand access to professional testers with the geographies and real-world infrastructure used by your consumers</li></ul>Fn<br /><ul><li>Focus groups selected based on demographic, socioeconomic, technical and geographic criteria
    6. 6. On-demand usability experts to develop and manage usability testing </li></ul>Ux<br />Ld<br /><ul><li>Provide live load, synthetic load and a combination of the two, utilizing uTest’s community of testers and performance engineers
    7. 7. Partner with leading synthetic load tools companies (notably SOASTA)</li></ul>Sc<br /><ul><li>Utilizing white hat security experts from the uTest community to provide automated and manual dynamic penetration testing
    8. 8. Probing for most common security & privacy vulnerabilities</li></ul>Lc<br /><ul><li>Real-world localization validation using native speakers for languages such as Spanish, Italian, French, German, Japanese and Mandarin
    9. 9. Enables flexible and scalable addition of localization support on demand</li></ul>3<br />
    10. 10. << BUT LET’S REWIND<br />
    11. 11. How Did We Get Here?<br />Knew testing space well<br />Understood the pain<br />Had experienced the pain, cost and frustration of testing software via traditional means<br />I was doing everything right<br />In-house testing<br />Outsourced partners<br />Test automation<br />Documentation<br />Yet, unexpected defects still emerged when we launched our apps and put them in users’ hands <br />5<br />
    12. 12. The “Aha” Moment<br />Premise: What if we moved testing into the wild so it would be closer to the end users of an app? <br />Conclusion: Best way to achieve was via crowdsourcing<br />This would (theoretically) enable firms to launch apps:<br />Tested “in-the-wild”<br />Vetted by real users<br />Ready for primetime<br />6<br />
    13. 13. EARLY DECISIONS ARE KEY<br />
    14. 14. Market To Go After First<br />1st Key Decision: Functional or Usability Testing? Trying to do both at once was too big<br />8<br />
    15. 15. 2nd Key Decision: Whether to bet on something as unproven as crowdsourcing<br />9<br />
    16. 16. 3rd Key Decision: How to turn a crowd…<br />10<br />
    17. 17. Into a predictable, orderly community?<br />11<br />
    18. 18. KEY STARTUP LESSONS<br />
    19. 19. 1. Focus Is Critical<br />When things are going well, opportunities abound<br />Stay on the critical path<br />We say ‘no’ more than we say ‘yes’<br />We started with functional test and focused on our community<br />We knew functional better<br />More pain-driven than usability<br />Larger market opportunity<br />Promise-keeping (community) is vital<br />13<br />
    20. 20. 2. Just Do It<br />While you’re off refining your business plan, someone else may be launching your idea<br />Finalize your business plan in parallel to:<br />Actual prototyping<br />Engaging with prospects<br />Interviewing stakeholders<br />Getting market feedback<br />14<br />
    21. 21. 3. Stay Lean<br />Initially, we even outsourced software development to maximize speed & minimize cost<br />15<br />
    22. 22. 4. Expect The Unexpected<br />Business model maywill evolve<br />Be ready to iterate on all fronts<br />uTest created a new category, so we had no one to follow – high risk & high reward<br />Listen to your customers<br />Get feedback from the market<br />They will tell you:<br />How they want to interact<br />What features they want<br />What’s “good enough”<br />16<br />
    23. 23. 5. Make Some Noise<br />17<br />Awards<br />Media Coverage<br />
    24. 24. FUND-RAISING: LESSONS LEARNED<br />
    25. 25. Start Small<br />Consider angels – raise the money absolutely needed to safely get you to your next phase<br />Take a bigger round (if necessary) when you’re getting market traction<br />Get revenue in the door ASAP<br />19<br />
    26. 26. Raising VC Funds<br />My Lesson: I went to VCs too soon<br />VCs Can Help With: <br />Refine your idea, business model, go-to market strategy<br />Give you perspective (they see lots of business plans)<br />Honestly set expectations (theirs and yours)<br />VC Do Not Help With:<br />Jump into completely new business models with no proof points or tail lights to follow<br />Making the ultimate decisions – it’s your baby<br />20<br />
    27. 27. When Choosing VCs<br />After making good progress with your seed money, good VCs complement angels will help you<br />Make connections with prospects<br />Grow management team<br />Build the brand<br />Do your research<br />Go with your gut<br />21<br />
    28. 28. Negotiating With VCs<br />Create competition – to get the best terms, never rely or focus on only one VC<br />Terms matter – its not just about the money but the terms that come with the deal<br />Every round is an opportunity to improve terms<br />You’re dealing with people at the end of the day:<br />You need to feel comfortable with terms andthe people<br />They need to believe in your core idea<br />They need to believe in you<br />22<br />
    29. 29. ABCs of Funding Rounds (for uTest)<br />Seed & A round<br />Prove the concept (technology, basic model)<br />Find & serve customers<br />Identify competencies which will differentiate you<br />B round<br />Bring core competencies in house: dev, sales, marketing<br />Understand key metrics (LTV, CAC, ROI)<br />Build out management team<br />C round<br />Scale operations<br />Increase spend<br />Drive customers & revenue<br />23<br />
    30. 30. ARE YOU READY TO SCALE?<br />
    31. 31. Predictability & Visibility<br />From single solution to a suite of testing services<br />Model has become highly predictable<br />Crack the code on marketing, sales, retention, etc<br />Understand the KPI of your business<br />Can you put $100 in and take $200 out?<br />Customer retention continues to rise<br />Customer LTV continues to rise<br />Greater predictability  greater willingness to invest<br />Since C round, investing aggressively in growing mindshare and marketshare<br />25<br />
    32. 32. And Now Crowdsourcing Is Accepted<br />26<br />
    33. 33. Summary<br />Entrepreneurship is a journey <br />Every biz has peaks and valleys<br />Don’t get hung up on mistakes or failures – learn from them<br />Tap your network<br />Find CEOs and advisors who’ve been there<br />No one knows everything – but you can find people to help<br />Know thyself<br />Play in spaces you know<br />Understand your individual strengths & weaknesses<br />Surround yourself with smart, passionate people<br />Have some fun<br />It’s an adventure… If you can’t enjoy that, it might not be for you<br />Seek out kindred spirits as your co-founders and early hires<br />27<br />
    34. 34. QUESTIONS?<br />Doron Reuveni | CEO & Co-Founder | uTest, Incw: www.utest.com e: doronr@utest.comp: 1.800.445.3914<br />
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