Surfer = The TeamThe team is the most important aspect forearly stage startups.Your team must be smart, passionate withthe idea, dedicated, and focused.
Qualities of a great team • Tenacity (Don’t give up easily) • Street smart (Go out talk to customers with the right questions) • Resiliency (Entrepreneurs don’t die, they commit suicide) • Willingness to accept risk (Go all in or go home get a job) • Competitiveness (There are competitions. Play to win) • Decisiveness / Gets things done (Get s&*t done fast) • Ability to pivot (Best entrepreneurs ﬁne tune their biz model) Source: From Mark Suster’s Entrepreneur’s DNA
Experienced = $$$Entrepreneurs Sure no Give me $30M for problem my next startupEntrepreneur VC
Wave = MarketVC’s want entrepreneurs tackling big problems(≠hard problems) with big market opportunity
Baby apparelBig Market Baby professional sports apparel Pivot Small Market Pivot
Market Size Understand what market you are addressing • What’s the market for my product? • How many people are gonna pay for it? • How much are they gonna pay for it? • When are they gonna pay?Addressable Market size for your business
Surfboard = ProductThe surfboard analogy is all about what yourproduct does and how it serves your marketYou need a product that’s a 10x painkillerWhy?Because it has to be compelling enough tochange the way your customers normally dothings and pay money to use your product
Surfboard = Product The surfboard analogy is all about what your product does and how it serves your market You need a product that’s a 10x painkiller Why? Because it has to be compelling enough to change the way your customers normally do things and pay money to use your productProviding new value to customers = hard
Your productWhat does my product do?What pain point does it address?How is this different from other products? Why should someone use this? What product does the market currently use? Can your product beat your competitor’s?
# users/ customers time $$$People love it so much, we are experiencing a hockey stick growth!
Fail points Immature Market Product is great,but the market is not ready for it
Fail points Saturated MarketThere are too many players in the market (Groupons)
Why Now?You have to have a good understanding ofwhy this product hasn’t been built before andwhy now is the best time the world needsthis.
The VC DealIn addition to the market, the deal itself hasto be fair: The valuation of your company’sworth and the structure of the term sheet. (Will go more into details in later presentations)
I want 50% of your company for $100k Oh and I want you outYou need to check if the VCs have reputable investment background, understand your industry, and are friendly to founders with fair terms (I’ll cover more on this in detail later)