More Related Content Similar to Steve Barsh Of Dream It Ventures On De Risking For Wharton Entrepreneurship Club February 2009 (20) Steve Barsh Of Dream It Ventures On De Risking For Wharton Entrepreneurship Club February 20091. De-Risking and
Acceleration
Steve Barsh, Managing Partner
steveb@dreamitventures.com * 215.888.2101
dreamitventures.com
barshbits.com sbarsh
1
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2. Agenda
• DreamIt Ventures
• De-risking & discovery
• Q&A
2
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3. Help great people
with great ideas
build great companies
• 3 month Startup
Accelerator
• Pre-Seed investment
• Expertise
• Mentorship
3
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4. Entrepreneurs Receive
Mentoring Professional Services
Expert Speakers Team Members
Community
Software + Resources
Capital
4
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5. Premises & Observations
• Money too early
• Validation from investors
• Key risks
• Out-of-box techniques
• De-risk before
• Pitching
• Building the product
5
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6. 3 – 7 Key Assumptions
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7. De-Risking Goals
• Convert assumptions into
knowledge
• At lowest cost
• As quickly as possible
• Decrease assumptions
to increase value
• Consume intellectual capital
before significant outside
capital
• Succeed or fail quickly
7
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8. Common Assumptions
Positioning / dierentiation
Demand
Market size
Feature set
Competition
Pricing / business model
Sales / adoption cycle
Team
Product development
Execution
Marketing
Financials forecasts
Financial needs
Enterprise value
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9. Common Problems
Key assumptions not
captured and no time
table
Little discussion with
potential customers
Little primary research
Weak demand
Pricing a guess
Marketing field of
dreams
Strategy alignment
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10. Stop Waving, Start Pointing!
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11. 100% Sure?
• Plans
• Presentations
• Pitches
• Financial models
• Forecasts
• Estimates
• Things with numbers or
graphs
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12. Experiment
• Hypotheses
• Prove or Disprove
• Build -- Release,
measure, learn,
iterate
• Research
• Valid proxies
12
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13. Key Investment Questions
• Key assumptions, dependencies,
and timetable?
• Evidence we are looking for?
• Assumptions de-risked before
further investment?
• Success criteria (e.g., market
uptake; revenue; impact,
financials, etc.)?
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14. 3 Main Takeaways
1. Key assumptions
2. Experiments
3. Convert assumptions
into knowledge
14
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15. More Info
• Redeye VC Blog: Failing Cheaper by Josh
Kopelman, First Round Capital.
• Common Mistakes Made by Entrepreneurs by
Mark Henricks.
• How To: Raise Money in a Down Economy by
Eric Ries at KPCB.
• Discovery-Driven Growth: A Breakthrough
Process to Reduce Risk and Seize
Opportunity (March 2009) by Rita McGrath and
Ian MacMillan (Wharton)
15
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16. Agenda
• DreamIt Ventures
• De-risking discovery
• QA
16
Dreamitventures.com Copyright © 2008-2009 by DreamIt Ventures LLC. All Rights Reserved.
17. De-Risking and
Acceleration
Steve Barsh, Managing Partner
steveb@dreamitventures.com * 215.888.2101
dreamitventures.com
barshbits.com sbarsh
Supporters
17
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