Intro to story

1. Intro – Think big
@hekovnik / @filipdobranic

2. “Build it and they will come”
idea -> investment -> product -> #swag
idea -> prototype -> testing

3. Customer Development
Source: Steve Blank
Problem/Solution Fit
Product/Market Fit

4. Product-market fit
a continuously changing target
why market?
why product-market?
what about founder-market?

6. Identify
The most oportunistic market willing to fork out
cash
A market that has a need
A market that fits with the current state of the
product
A market that you can expand

7. The Three Markets
Product markets
Resource / factor markets
Financial markets

8. Market Timing & Value
New market Segmented market Existing market
t
$
Eearly adopters Early majority Late majority Laggards

9. The Magic Chart
How are you going to finance
and survive this?

10. TAM, SAM,
SOM
TAM
SAM
SOM
TA
M

11. Price tag
It's not about the money, money, money
We don't need your money, money, money
We just wanna make the world dance
Forget about the price tag
Ain't about the (uh) cha-ching, cha-ching
Ain't about the (yeah) ba-bling, ba-bling
We just wanna make the world dance
Forget about the price tag

12. The Three Markets v2
Consumer markets
Capital markets
Exit markets

13. Venture capital
Funds, not individuals
VCs are their LPs’ employees
90% of investments fail

14. Life of a VC
“Please sir, could I have some more?”
Autumn
Winter
Spring
Summer

15. Pitchers, pots and pans
@hekovnik / @filipdobranic
http://www.sequoiacap.com/ideas

16. Startup timing: Wait until the
world changes so that an
important problem goes from
impossible to just really hard.
Then execute.
@plibin

17. A quick word on investors
Being human
Livelihood
Trust
Opportunity

18. Bird-eye view
PURPOSE
PROBLEM + SOLUTION
TEAM + PRODUCT + MARKET + FINANCIALS

19. This is not just a piece of paper
Elements of sustainable companies
Clarity of Purpose
Large Markets
Rich Customers
Focus
Pain Killers
Think Differently
Team DNA
Agility
Frugality
Inferno

20. 1. Company Purpose
● Define the company/business in a single
declarative sentence
● Vision
● Mission
● Values

22. 2. Problem
Describe the pain of the customer (or the
customer’s customer).
Outline how the customer addresses the
issue today.
Explicitly state your value proposition!
[fabulousness]

24. 3. Solution
● Demonstrate your company’s value
proposition to make the customer’s life
better.
● Show where your product physically sits.
● Provide use cases.

26. 4. Why Now
● Set-up the historical evolution of your
category.
● Define recent trends that make your solution
possible.

28. 5. Market Size
● Identify/profile the customer you cater to.
● Calculate the TAM (top down), SAM (bottoms
up) and SOM.

30. 6. Competition
● List competitors
● List competitive advantages

33. 7. Product
● Product line-up (form factor, functionality,
features, architecture, intellectual property).
● Development roadmap.

35. 8. Business Model
● Revenue model
● Pricing
● Average account size and/or lifetime value
● Sales & distribution model
● Customer/pipeline list
● [awesomeness]

37. 9. Team
● Founders & Management
● Board of Directors/Board of Advisors

39. 10. Financials
● P&L
● Balance sheet
● Cash flow
● Capitalization table
● The deal