CTO Role in Early Seed VenturesDavid Rashty | Jan 2013           JumoStartCTO.com
Early Seed Ventures     Need a strong leadership to navigate and grow the idea into a viable    product.     Maneuver be...
Lean Startup Methodology     Lean startup is a methodology for product development and a business    approach for buildin...
What is a Minimal Viable Product (MVP)     The Minimal Viable Product is that version of a new product which    allows a ...
Defining your Minimal Viable Product     Defining the target audience and understanding    their needs     Transforming ...
Testing the Product     Testing the product needs to start before developing     Walk through with potential audience is...
Building the Team     Key factor of successful ventures is the team behind the ventures and    not only the idea     Col...
Outsourcing     Outsourcing can be a good solutions for ramping your venture quickly     Outsourcing does not tie the ve...
What is the CTO Role     Traditional CTO Role is different in early seed venture than in post    seed start-ups and estab...
Common Early Seed Mistakes     Frictions between founders - Founders must be able to overcome    disagreements between th...
Approaching Seed Investors     Seed investors are easy to find but hard to approach.     Each seed investors has his own...
CTO Role in Early Seed Venture     Understand technology in the extent of being able to choose the right    solution to r...
How JumpStartCTO Can Help You ?     JumpStartCTO has proven leadership strategies and management    skills.     JumpStar...
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CTO role in early seed ventures

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JumpStartCTO (www.jumpstartcto.com) is a NYC based consulting firm that helps entrepreneurs with the early stages of ventures. Their goal is to help build working partnerships between entrepreneurs who have ideas for products and those professionals who have the knowhow and ability to productize their ideas and bring them to the market. This video is about the first stages of

Approaching investors is not an easy process. While finding investors may be easy, the hard part comes when you have to approach them. There are many kinds of investors, so there isn't only one right way to approach an investor, but there are proper ways of anticipating and coping with some of the feedback you might receive.

What to expect when approaching business seed investors.

To start with, remember that each investor is different. Their given hunger for risk, their net worth, their previous experiences and even the amount of money he is willing to risk, are all factors that make each investor unique. Consequently, there is some basic information that you need to collect prior to approaching an investor, in order for you to answer his questions and also for you to understand his preferences

Investors have different criteria and values. When analyzing his investment, for example, an investor might juxtapose the importance of the venture idea itself with the quality of the team of people behind it. Some people will place more importance on the team rather than the idea itself and hence they would rather invest in the ability of the team to deliver the goods than assume that the idea, if good enough, will be successful no matter what.

Another insight when planning to approach an investor is to count on his ability to help you with the process of building your startup. Money is not the only thing he can help you get, some investors may be more valuable if they were more actively involved in the process - while keeping eye on their investment they can help get the right people involved to make sure the capital is being used in the right way. This prove to make your team more productive, because experienced investors often have lots of know how that can be useful in certain areas and can benefit the process as a whole.

For more on this and to read other articles related to using a CTO in a part-time consulting capacity, go to http://jumpstartcto.com. For comments and inquiries, you can write David directly at david.rashty@gmail.com

CTO role in early seed ventures

  1. 1. CTO Role in Early Seed VenturesDavid Rashty | Jan 2013 JumoStartCTO.com
  2. 2. Early Seed Ventures  Need a strong leadership to navigate and grow the idea into a viable product.  Maneuver between budget, product, team and technology issues.  Entrepreneurs Need experience and guidance in this process .  JumpStartCTO is a New York based consulting firm that helps entrepreneurs with the early stages of ventures.  JumpStartCTO build working partnerships between entrepreneurs who have ideas for products and those professionals who have the knowhow and ability to productize their ideas and bring them to the market. 2David Rashty | Jan 2013 JumoStartCTO.com
  3. 3. Lean Startup Methodology  Lean startup is a methodology for product development and a business approach for building new products.  It is valid when the product can be developed in cycles and can be validated with the basic offering.  Target audience feedback is the engine which drive each development cycles and needs to be collected and analyzed repeatedly.  Starting lean sometimes means using external on-demand resources rather than building a robots operation and hiring a team from start .  CTO role includes balancing between the target audience needs and the possible product offering while moving in small cycles each time 3David Rashty | Jan 2013 JumoStartCTO.com
  4. 4. What is a Minimal Viable Product (MVP)  The Minimal Viable Product is that version of a new product which allows a CTO’s team to collect the maximum amount of validated learning about customers with the least effort.  MVP is a Process and strategy which start with launching the product at the beginning with ”just enough” features and functionality to engage your target audience.  Continues product development is done by collecting the users feedback and enhancing the product based on that feedback from one cycle to another.  CTO responsibility may include collecting the customers needs and defining the basic functionality to engage the users when product launches 4David Rashty | Jan 2013 JumoStartCTO.com
  5. 5. Defining your Minimal Viable Product  Defining the target audience and understanding their needs  Transforming target audience needs into product requirements  Prioritizing requirements  Translating requirement into product functionality and Testing product assumptions  CTO responsibility includes managing the process and being able to understand the coherence to the technology in use 5David Rashty | Jan 2013 JumoStartCTO.com
  6. 6. Testing the Product  Testing the product needs to start before developing  Walk through with potential audience is an important tool for pre developed product testing  Heuristic evaluation and user testing is essential while the product is being developed and before it is launched  Post launch testing can be collected automatically using log analysis tools and other automatic testing tools as well as usability lab testing  CTO needs to understand which tools to use and how to analyze the input from the testing and turn it back into the product cycle while prioritizing the findings 6David Rashty | Jan 2013 JumoStartCTO.com
  7. 7. Building the Team  Key factor of successful ventures is the team behind the ventures and not only the idea  Collaborative and out of the box thinking is essential for growing the venture  Team players are more important than members with extraordinary abilities but lack of communications  CTO responsibility need to include leading the team, listening to their ideas and inputs, collaborating requirements and defining the expectations 7David Rashty | Jan 2013 JumoStartCTO.com
  8. 8. Outsourcing  Outsourcing can be a good solutions for ramping your venture quickly  Outsourcing does not tie the venture into unneeded expenses and allows gradual growth  Managing virtual workers needs experience and knowhow in setting expectations and working remotely  Outsourcing can be a starting strategy and not necessary an on going approach  CTO abilities to manage external remote resources is a key in being able to outsource development and aspects of the product design 8David Rashty | Jan 2013 JumoStartCTO.com
  9. 9. What is the CTO Role  Traditional CTO Role is different in early seed venture than in post seed start-ups and established ventures.  CTO Expertise needs to be diverse.  CTO Experience is essential.  CTO responsibility may include product, team building & technology.  On Demand or Part Time Consulting CTO is a good solutions for ramping up fast and having an experienced CTO on board. 9David Rashty | Jan 2013 JumoStartCTO.com
  10. 10. Common Early Seed Mistakes  Frictions between founders - Founders must be able to overcome disagreements between them in a way that best serve the product and the company.  Misplaced Marketing – Know the product audience and the market !  Not planning ahead – Understand the target audience needs, and focus the product offering.  Not testing the product – Test and test again through the process  Spending money in the wrong places  Being technology oriented rather than product oriented 10David Rashty | Jan 2013 JumoStartCTO.com
  11. 11. Approaching Seed Investors  Seed investors are easy to find but hard to approach.  Each seed investors has his own test for risk taking and ability to invest  Friends & Family are not seed investors ! They don’t have the ability to evaluate the investment and not the experience needed to assist  Seed investors which can provide assistance in growing the product are better than those which only have the money  Seed investors commonly look at the people behind the venture rather than just the idea.  Research and prepare for each investor to adjust your offering to his taste and requirements. 11David Rashty | Jan 2013 JumoStartCTO.com
  12. 12. CTO Role in Early Seed Venture  Understand technology in the extent of being able to choose the right solution to rapidly build the product.  Make research to understand what technologies can be reused or used as external resources rather than developed.  Be able to manage external resources as well as lead the internal team.  Be responsible for initial product requirements definitions.  Be able to collect and analyze feedback from target audience and continuously inject it back into the development process. 12David Rashty | Jan 2013 JumoStartCTO.com
  13. 13. How JumpStartCTO Can Help You ?  JumpStartCTO has proven leadership strategies and management skills.  JumpStartCTO help to streamlines the processes needed to develop a product.  JumpStartCTO is efficient at identifying the required framework and IT infrastructure essential for taking ideas and making them into a minimal viable product.  Visit us at www.jumpstartcto.com  More information can be found in the description of this video 13David Rashty | Jan 2013 JumoStartCTO.com

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