1.
Product – Market Fit<br />Jeff Bussgang, Flybridge Capital<br />Angel Boot Camp<br />June 14, 2011<br />

2.
Breakout Objectives<br />Explain what people mean when they use the phrase, “Product Market Fit” (PMF), plus:<br />Customer Development Process<br />Lean Start-Up Theory<br />Help you devise your approach to achieving PMF<br />Making sure you don’t waste a lot of money before you find PMF<br />

3.
Leading Thinkers<br />Geoffrey Moore: Crossing the Chasm<br />Steve Blank: Customer Development Process<br />Eric Ries: Lean Startups<br />Mark Leslie: Sales Learning Curve<br />Sean Ellis: Lean Startup Marketing<br />Tom Eisenmann: Launching Tech Ventures (HBS)<br />

4.
Where Are You?<br />After-Product Market Fit<br />Before-Product Market Fit<br />Building a robust, feature-rich product<br />Crossing the chasm<br />Metrics, analytics, funnels<br />Designing for virality & scalability<br />Scaling a sales force<br />Challenges with corporate partnerships<br />Building a brand<br />Scaling the exec team<br />Minimum viable product (MVP)<br />Customer development process<br />Selling to early adopters<br />Pivoting<br />Bootstrapping<br />Small, founding team<br />Product-centric culture<br />Source: HBS Prof. Tom Eisenmann, J.Bussgang<br />

5.
Crossing The Chasm<br />

6.
Lean Startup Principles<br />Nail it then scale it<br />Rapid hypothesis testing about market, pricing, customers (customers & markets unknown)<br />MVP (Minimum viable product)<br />Low burn by design (no scaling until revenue)<br />Metrics, iteration, agile development<br />Learn fast (fail fast)<br />Source: Eric Ries, Sean Ellis<br />

7.
Customer Developmentvs. Product Development<br />Concept/Bus. Plan<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />Product Development<br />Customer Development<br />CustomerDiscovery<br />Company<br />Building<br />CustomerValidation<br />Customer Creation<br />Source: Steve Blank<br />

8.
“Lessons Learned” Drives Funding<br />Test <br />Hypotheses<br />Concept<br />Business Plan<br />Lessons <br />Learned<br />Series A<br />Do this first instead of fund raising<br />Source: Steve Blank<br />

9.
foursquare Case Study<br />From inception, best practices in PMF:<br />MVP<br />Product-centric culture and founding team<br />$1.35m Series A<br />Responded to every email, tweet<br />Hunch-driven, not metrics-driven<br />The founders were the target customer<br />Contextual factors<br />Tech trends enabled success: iPhone/apps, LBS/GPS, social media<br />Impact of geography (NYC), launch (SXSW) and VC (Fred Wilson)<br />Game mechanic, playful, entertaining<br />Source: Pikorski, Eisenmann, Bussgang, HBS Case Study: “foursquare”<br />

10.
foursquare Case Study (2)<br />Post PMF Challenges:<br />Tech founder as scalable CEO<br />$20m Series B - expectations<br />Pressure to be more analytical<br />Competitive response to Facebook, Yelp<br />The founders no longer can do it all<br />Monetization pressures – when to run experiments? How scale?<br />Questions:<br />Who is foursquare’s customer – the consumer or the business?<br />What social failure is foursquare solving?<br />When should foursquare focus on monetization vs. consumer scale?<br />Has foursquare crossed the chasm?<br />Source: Pikorski, Eisenmann, Bussgang, HBS Case Study: “FourSquare”<br />

11.
Product – Market Fit<br />Jeff Bussgang, Flybridge Capital<br />Angel Boot Camp<br />June 14, 2011<br />