Anatomy of a (un)fundable startup
Upcoming SlideShare
Loading in...5
×
 

Anatomy of a (un)fundable startup

on

  • 272,389 views

Naval Ravikant's talk at the 7th Founder Showcase. More at http://angel.co and http://venturehacks.com.

Naval Ravikant's talk at the 7th Founder Showcase. More at http://angel.co and http://venturehacks.com.

Statistics

Views

Total Views
272,389
Views on SlideShare
40,615
Embed Views
231,774

Actions

Likes
135
Downloads
1,486
Comments
7

118 Embeds 231,774

http://venturehacks.com 223123
http://tempofeng.tumblr.com 2121
http://www.steamfeed.com 1393
http://jimmyroyal.no 1065
http://www.liubinskas.com 1035
url_unknown 371
http://2012.jimmyroyal.no 304
http://bernardhor.wordpress.com 214
http://cofounder.tv 177
http://justinbarrett.tumblr.com 173
http://venturehacks.wpengine.com 163
http://rocketscience.jimmyroyal.com 150
http://translate.googleusercontent.com 121
http://www.linkedin.com 112
http://startupu.herokuapp.com 110
http://tempo.tw 106
http://jeev.in 86
http://sohoincubator.blogspot.com 85
http://mccbtd.com 62
http://www.terrencebrown.net 52
http://localhost 49
http://www.clipboard.com 48
http://paper.li 44
http://www.newsblur.com 42
http://blog.how-to-web.net 37
http://venturehacks.staging.wpengine.com 34
https://twitter.com 33
http://lanyrd.com 31
http://newsblur.com 27
http://soulstyse-staging.herokuapp.com 24
http://www.nagpurentrepreneurs.com 23
http://whiteshark.ap01.aws.af.cm 21
http://www.fydserver.com 20
http://webcache.googleusercontent.com 20
http://venturehacks.com. 18
http://www.slideshare.net 18
http://feeds.feedburner.com 17
http://feeds.venturehacks.com 16
http://ideasbrillantes.org 15
http://theblankcoder.tumblr.com 12
http://abtasty.com 8
http://twitter.com 8
http://www.networkedblogs.com 8
http://www.sohoincubator.blogspot.com 7
http://sohoincubator.blogspot.in 7
http://ranksit.com 6
http://blog.howtoweb.co 6
http://crazyaboutstartups.com 6
http://wikibulary.ru 6
http://venturehacks.wpengine.netdna-cdn.com 5
More...

Accessibility

Categories

Upload Details

Uploaded via as Apple Keynote

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • \n
  • \n
  • \n
  • \n
  • \n
  • Bifurcated fundings - can’t raise money until you’re suddenly oversubscribed.\nIt’s an emotional decision, so you often get funded on the basis of your single best attribute\nNot like college where they weigh everything equally.\nLooking for that one thing that makes you the best in the world\n
  • It’s like the number of times a song gets played. No average outcome - statistically meaningless. Because of network effects, leverage. Winner take all. Graph is of book popularity, only of top 5K books!\n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n

Anatomy of a (un)fundable startup Anatomy of a (un)fundable startup Presentation Transcript

  • Anatomy of a fundable startup Naval Ravikant Venture Hacks / AngelList✌ angel.co
  • Anatomy ofan unfundable startup Naval Ravikant Venture Hacks / AngelList✌ angel.co
  • Exceptional Fundings
  • Exceptional Outcomes LinkedIn Pandora Facebook You are here
  • The Age of Free Leverage
  • The Age of Free Leverage • Capital, Labor, Machines
  • The Age of Free Leverage • Capital, Labor, Machines • Intellectual “Property” - Code, Books, Movies, Music
  • The Age of Free Leverage • Capital, Labor, Machines • Intellectual “Property” - Code, Books, Movies, Music • IP Platforms (iOS, S3, LAMP, FB Connect)
  • The Age of Free Leverage • Capital, Labor, Machines • Intellectual “Property” - Code, Books, Movies, Music • IP Platforms (iOS, S3, LAMP, FB Connect) • Labor Platforms - Mech Turk, Communities (YouTube, Quora, Wikipedia)
  • The Age of Free Leverage • Capital, Labor, Machines • Intellectual “Property” - Code, Books, Movies, Music • IP Platforms (iOS, S3, LAMP, FB Connect) • Labor Platforms - Mech Turk, Communities (YouTube, Quora, Wikipedia) • Capital Platforms (AngelList, KickStarter, SecondMarket,YC, TechStars)
  • Traction
  • Traction You
  • Traction You Product
  • Traction You Product Social Proof
  • Traction You Product Social Proof Market
  • Traction You Product Social Proof Market High Concept Pitch
  • Traction You Product Social Proof Market High Concept Pitch Elevator Pitch
  • Traction You Product Social Proof Market High Concept Pitch Elevator Pitch Presentation
  • A Note on Location
  • A Note on Location• Silicon Valley, New York
  • A Note on Location• Silicon Valley, New York• Seattle, Austin, LA, Boston, Chicago, London
  • A Note on Location• Silicon Valley, New York• Seattle, Austin, LA, Boston, Chicago, London• Estonia, Chile, India, Croatia, Poland
  • A Note on Location• Silicon Valley, New York• Seattle, Austin, LA, Boston, Chicago, London• Estonia, Chile, India, Croatia, Poland• Capital is mobile, but capitalists are lazy
  • A Note on Location• Silicon Valley, New York• Seattle, Austin, LA, Boston, Chicago, London• Estonia, Chile, India, Croatia, Poland• Capital is mobile, but capitalists are lazy• Funding markets develop backwards
  • Markets andApproaches
  • Markets and Approaches• Services, multiple products
  • Markets and Approaches• Services, multiple products• Small Markets (obviously)
  • Markets and Approaches• Services, multiple products• Small Markets (obviously)• Desktop software / Dead Platforms
  • Markets and Approaches• Services, multiple products• Small Markets (obviously)• Desktop software / Dead Platforms• Conquered Markets with Network Effects
  • Markets and Approaches• Services, multiple products• Small Markets (obviously)• Desktop software / Dead Platforms• Conquered Markets with Network Effects• High atom content
  • Markets and Approaches• Services, multiple products• Small Markets (obviously)• Desktop software / Dead Platforms• Conquered Markets with Network Effects• High atom content• Not too large, not too small
  • Team?
  • Team?• “Functional visionary and project manager”
  • Team?• “Functional visionary and project manager”• “I have no ego. Currently my role is visionary / strategist”
  • Team?• “Functional visionary and project manager”• “I have no ego. Currently my role is visionary / strategist”• Outsourced development, business-heavy
  • Team?• “Functional visionary and project manager”• “I have no ego. Currently my role is visionary / strategist”• Outsourced development, business-heavy• Sole founder
  • Team?• “Functional visionary and project manager”• “I have no ego. Currently my role is visionary / strategist”• Outsourced development, business-heavy• Sole founder• Part-timers
  • Team?• “Functional visionary and project manager”• “I have no ego. Currently my role is visionary / strategist”• Outsourced development, business-heavy• Sole founder• Part-timers• “High Tech Sales Exec who loves his family and loves to run”
  • Team?• “Functional visionary and project manager”• “I have no ego. Currently my role is visionary / strategist”• Outsourced development, business-heavy• Sole founder• Part-timers• “High Tech Sales Exec who loves his family and loves to run”• 12 years experience in...
  • Exceptional Team
  • Exceptional Team
  • Exceptional Team
  • Exceptional Team
  • Team Guidelines
  • Team Guidelines• No adjectives / opinions of yourself
  • Team Guidelines• No adjectives / opinions of yourself• Show, not tell
  • Team Guidelines• No adjectives / opinions of yourself• Show, not tell• Quantitative and precise, not qualitative and vague
  • Team Guidelines• No adjectives / opinions of yourself• Show, not tell• Quantitative and precise, not qualitative and vague• Branded or measurable output
  • Team Guidelines• No adjectives / opinions of yourself• Show, not tell• Quantitative and precise, not qualitative and vague• Branded or measurable output• Recruit only the best. And if you can’t, you’re not ready
  • Product?
  • Product?• “We will disclose more under NDA”
  • Product?• “We will disclose more under NDA”• “I am raising money to build the product”
  • Product?• “We will disclose more under NDA”• “I am raising money to build the product”• “Launching next month”
  • Product?• “We will disclose more under NDA”• “I am raising money to build the product”• “Launching next month”• “Sign up for the beta here...”
  • Product?• “We will disclose more under NDA”• “I am raising money to build the product”• “Launching next month”• “Sign up for the beta here...”• “Building second version now”
  • Exceptional Product
  • Exceptional Product
  • Product Guidelines
  • Product Guidelines• No promises / vision
  • Product Guidelines• No promises / vision• Show, not tell
  • Product Guidelines• No promises / vision• Show, not tell• Quantitative and precise, not qualitative and vague
  • Product Guidelines• No promises / vision• Show, not tell• Quantitative and precise, not qualitative and vague• Something hard with specific knowledge
  • Product Guidelines• No promises / vision• Show, not tell• Quantitative and precise, not qualitative and vague• Something hard with specific knowledge• Expect competition
  • Product Guidelines• No promises / vision• Show, not tell• Quantitative and precise, not qualitative and vague• Something hard with specific knowledge• Expect competition• Build only the best. And if you can’t, you’re not ready
  • Traction
  • Traction• Markets are efficient - individuals cannot predict traction
  • Traction• Markets are efficient - individuals cannot predict traction• Amount varies by product
  • Traction• Markets are efficient - individuals cannot predict traction• Amount varies by product• Incremental not cumulative
  • Traction• Markets are efficient - individuals cannot predict traction• Amount varies by product• Incremental not cumulative• Know your microeconomics
  • Traction• Markets are efficient - individuals cannot predict traction• Amount varies by product• Incremental not cumulative• Know your microeconomics• If you can’t generate traction, do you really want to raise money?
  • Traction• Markets are efficient - individuals cannot predict traction• Amount varies by product• Incremental not cumulative• Know your microeconomics• If you can’t generate traction, do you really want to raise money?• How much is enough? 10% per month? 20%?
  • Social Proof
  • Social Proof• “Get referred to us by someone we know”
  • Social Proof• “Get referred to us by someone we know”• Entrepreneurs and committed investors best
  • Social Proof• “Get referred to us by someone we know”• Entrepreneurs and committed investors best• Herd mentality is rational
  • Social Proof• “Get referred to us by someone we know”• Entrepreneurs and committed investors best• Herd mentality is rational• Why? What did they like that you can’t show in the other metrics?
  • Real Hacks
  • Real Hacks• Advisory Round (Notable Founder, Operator)
  • Real Hacks• Advisory Round (Notable Founder, Operator)• Cast a Broad Net, move simultaneously
  • Real Hacks• Advisory Round (Notable Founder, Operator)• Cast a Broad Net, move simultaneously• Easier to pitch a new investor than to convert one
  • Real Hacks• Advisory Round (Notable Founder, Operator)• Cast a Broad Net, move simultaneously• Easier to pitch a new investor than to convert one• Equity, not notes
  • Real Hacks• Advisory Round (Notable Founder, Operator)• Cast a Broad Net, move simultaneously• Easier to pitch a new investor than to convert one• Equity, not notes• Sell an option
  • Real Hacks• Advisory Round (Notable Founder, Operator)• Cast a Broad Net, move simultaneously• Easier to pitch a new investor than to convert one• Equity, not notes• Sell an option• But if you’re having a hard time, re-start, not push
  • In Summary
  • In Summary• Get to a funding hub
  • In Summary• Get to a funding hub• Recruit an exceptional team.
  • In Summary• Get to a funding hub• Recruit an exceptional team.• Build something that you are passionate and knowledgeable about
  • In Summary• Get to a funding hub• Recruit an exceptional team.• Build something that you are passionate and knowledgeable about• Test it against customers
  • In Summary• Get to a funding hub• Recruit an exceptional team.• Build something that you are passionate and knowledgeable about• Test it against customers• Get social and customer validation
  • In Summary• Get to a funding hub• Recruit an exceptional team.• Build something that you are passionate and knowledgeable about• Test it against customers• Get social and customer validation• Raise on at least one exceptional characteristic
  • In Summary• Get to a funding hub• Recruit an exceptional team.• Build something that you are passionate and knowledgeable about• Test it against customers• Get social and customer validation• Raise on at least one exceptional characteristic• PS - Assume fierce competition