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NWEN and Founder Institute Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems

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Ideation Bootcamp - Week 1. Big Ideas, Markets and Problems. Dave Parker and Joel Espelien, Feb 6, 2013. Graham & Dunn Seattle Office

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NWEN and Founder Institute Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems

  1. 1. Ideation Bootcamp
  2. 2. About Mentors Joel Espelien Dave Parker• Entrepreneur & Founder • Director, Seattle Founder Institute• VP Strategy & General Counsel for • Entrepreneur Packet Video • Board Member Guidant Financial• Mentor for Tech Stars and • Former Board Member Founder’s Co-op Classmates.com
  3. 3. Agenda:• Week 1- Big Ideas/Markets/Problems – Introductions – Market – Problems – Ideas – Q&A – Working Groups – Homework
  4. 4. Weekly Format• 6:30 – Food/beverages• 6:45 – Introduction to topics & mentors• 7:00 – Content 1• 7:30 – Content 2• 8:00 – Q&A• 8:25 – Break• 8:45 - Working Groups• 9:15 – Home work
  5. 5. • Big Ideas – Big Markets – Big Problems – With Joel Espelien• Venture Ready Research, Target Markets & Models – With David Bluhm• Validating your idea: tools and methods – With Justin Wilcox• Communicating your idea (without getting lost in the details) – With Joanna Lord
  6. 6. Week 1
  7. 7. #SEFI @FoundingSo You Have a Startup Idea? Joel Espelien - @EspelienJB Dave Parker - @DaveParkerSEA
  8. 8. Ground Rules:• Don’t be afraid to share your idea!• Ideas don’t matter – feedback, execution and iteration do• You have more to gain than to lose• Nobody is going to steal your idea• Don’t ask an Investor to sign your NDA
  9. 9. Survey Existing Business? Tech Business? B2B? B2C?Seeking Investment?
  10. 10. What Investor Look For• Big Market/Idea/Problems• Team that can execute• Scalable Product• Traction – Customer, revenue, users
  11. 11. Markets• Who Buys from You?• Business to Business• Business to Consumer• Established vs. Immature• What is a Market?
  12. 12. Investment Falls in 2012 Deal Flow and Equity into Venture-Backed Companies 3506 3363 3116 3110 3049$50 2859 3,000 2759 2627 2462$40 $34.5 $35.1 $33.1 2,000$30 $31.1 $29.3 $29.7 $25.1 $24.3$20 $23.6 1,000$10 $0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Amount Invested ($B) Number of Deals Source: Dow Jones VentureSource
  13. 13. Industry Allocations Steady in 4Q’ 12 Deal Flow Allocation by Selected Groups100% 2% 2% 4% 5% Energy & 17% 15% Utilities 17% 16% 18%80% 20% Business & 16% 21% 20% Financial 23% Services60% Consumer Services 34% 38%40% 34% 38% Information Technology20% 29% 25% 24% Healthcare 24% 22% 0% 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 Source: Dow Jones VentureSource
  14. 14. Software Loses Pace in 4Q’ 12 IT Investment Allocation by Sector100% 3% 9% 5% 7% 10% 15% Semiconductors 16% 15% 14% 14%80% 8% 12% 18% 22% Electronics & 30% Computer60% Hardware Communications40% 70% & Networking 65% 62% 59% 47%20% Software 0% 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 Source: Dow Jones VentureSource
  15. 15. Big Markets?• Is the Market in Billions?• Specific Opportunity for VC >$100M• If you own the market how big would your be• Market Leader vs. First Mover• Known or unknown
  16. 16. Big Ideas?• Changes the world • Changes a market• Simple • Complex• “Aha” idea • Feature or tool• Transformational • Incremental
  17. 17. Big Problems• Pain Pill? Have to have it• Vitamin? Nice to have• Who wins if you win?• Do they “win big” or “save a little”?
  18. 18. It’s takes as long to build a small idea as big idea
  19. 19. • Passion! • Doesn’t make it a great business• Ideas! • Execution• Product • Company
  20. 20. Explain Your Idea
  21. 21. Idealibs for StartupsI want to develop (a defined offering) to help (a target audience) (solve a problem) (with secret sauce)
  22. 22. The Offering• Be Specific – “a social utility" vs "an ecommerce website"• Avoid Buzzwords – "mobile social CRM" vs "an iPhone application"• Skip the Adjectives and Superlatives – "a revolutionary service" vs "backend software"
  23. 23. The Audience• Identify Demographics – "female consumers" vs ”new mothers"• Specify Your Market – "artists and musicians" vs "unsigned alternative bands"• Clarify the Buyer – "large businesses" vs "purchasing managers at multinational companies"
  24. 24. The Problem• Make sure everyone can understand the offering.• Hint at a viable revenue model. – "find deals online" vs "shop for hip baby products at wholesale prices"
  25. 25. The Secret Sauce• Explain what makes your business unique. – "faster" vs "with automated ordering for diapers and other staples”
  26. 26. Q&A
  27. 27. Working Groups Homework
  28. 28. 7 Rules to Judge Your Idea
  29. 29. 7 Rules1. Simple ideas win2. You have one revenue stream3. Name your customer4. Make something explainable5. Small markets suck6. Mix in secret sauce7. Be original
  30. 30. Contact Info• Dave Parker – Dave@dkparker.com @DaveParkerSEA• Joel Espelien – joelbespelien@gmail.com @EspelienJB• Daniel Rossi – DRossi@nwen.org @nwen-org• Caitlin Goetze – Cgoetze@nwen.org

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