1. Team Mailmate/Kasteko
INTERVIEWS
Total: 78
Roi Chobadi
Emily Steinberg
Gil Shotan
Rafael Moreno

2. Video
http://www.youtube.com/watch?v=JCaOL6kKwhk&feature=youtu.be

3. MailMate
History and Lessons

4. Elevator Pitch What we had in mind
Do you panic after hitting “send”, wondering what typos or cultural faux-
pas you’ve made?
Next time, use Mail.Mate, for fast, accurate, personalized email
proofreading so you can hit “send” with confidence.

5. MailMate Canvas #1
For proofreaders: With proofreaders: Proofreaders:
- Develop seamless, user-
- Additional source of - Automated sign-up and - Native English
- Payment Processor (PayPal) friendly simple easy-to-use
income that is flexible transaction process speaking students or
- English lessonscontent service for sending proof-
in terms of working - Online Community young adults
provider read emails for all platforms
hours, location & - Live Help / Support - Freelance workers
- PR/Marketing Firm - Develop easy tools and
duration of work - Training / Vetting (native English
software for proofreading
- Online Discussions speaking) looking for
- Process fees
- Provide live support For users: extra cash
- Communicating With users: - English Teachers
- Sign up paying users
professionally in - Automated sign-up and /Tutors
- Sign up proofreaders
foreign language transaction process
- Removing - Live Help / Support Users:
awkwardness of - Immigrants living in a
asking friends to help country with local
- Learning a language in language different
For proofreaders:
- R&D resources to develop a personal way than their mother
- Universities -> Students
product tailored to user’s - Schools – English teachers tongue
- Marketing resources to specific needs without - Online tutorsforums - People doing business
reach users and having to dedicate - Onlinesocial ads internationally and
proofreaders time and resources for - Offering money to add friend communicating in a
- Community of proofreaders language learning foreign language
- Support For users: - Exchange foreign
- Biz Dev Sales to sell - Onlinesocial ads students
- Language forums
service to companies - People with Dyslexia
- Universities
- Brand or other language
- Companies
- Offering refunds to existing challenges
users that add new users
• Paying proof-readers • Monthly subscription that allows for X proof-read emails per
• Paying salaries (R&D, Marketing, Support, Management) month. Several packages (25, 100, 1000 emails…)
• ServerHosting costs • Premium paid feature for tailored English lessons
• Marketing campaigns • Translation services
• Paying transaction fees (PayPal credit card)

6. First week – 20
interviews – collected
What people want data and analyzed it
40%
CUSTOMER NEED
Workplace (B2B)
Recruiting
First intro / Networking
30%
School Application
% OF TOTAL RESPONDENTS
American Culture
Communication Coach
Personal emails
20% Important people
Organizing Events Emails to groups
10%
0%
GREATEST NEED: B2B CORRESPONDENCE
(37% of interviewees to-date)

7. Learning Week #1
• We were not “hypothesis” driven in term of customer
archetype/segment – we spoke with everyone
(immigrants, internationals, students, professionals…)
• The students we spoke with were interested but not
passionate about it (those people could be mainstream
late adopters, not early adopters)
• Many people mentioned working environment as the
main use case – we started thinking about B2B
• Many people mentioned communication and cultural
challenges, we started considering these too

8. MailMate Class 2 (following week #1)
Proofreaders: Proofreaders: Proofreaders:
Recruiting and training
Get – Online ads, University Native English speaking
Companies that teach
Payment Processor (PayPal) proofreaders
Flexible Income Source job posts students /young adults
Grow – Referral program
English for foreign
English tutorials from content Developing software Translation Keep – Seniority pay rates
English Teachers /Tutors
providers Users:
Communication services Users: International students
employees at other Providing quality control
Websites for expats to reach
coaching
Proofreading emails in the US
Users:
companies
potential users
Get – Free trial,
Grow – Referrals,
Language Learning Adult immigrants in the US
Keep – attractive long term
Companies that teach English
Translation services packages International students in
to foreign employees at
companies
Companiesthe US
Communication coaching
employingInternational professionals
non-native
Proofreaders: English speakers emailers
Typo-prone
Software development University job boards
team Busy language learners
Referral program
Companies employing non-
Online advertising
native English speakers
Users:
Online advertising
University Career &
International Centers
Paying proof-readers
Employers paying for
Pay per email
employees
Software development Email packages, Monthly packages
ServerHosting costs Premium added for feedback
Paying transaction fees (PayPal credit card) Employers paying for employees

9. We launched our
WHAT IS MAIL.MATE? MVP early week #2
• CURRENT HYPOTHESIS: MECHANICAL TURK SERVICE

10. Here’s the initial
traffic we saw. Mostly
Traffic through FB and LI

11. Some numbers and
Launched MVP comments from
people reacting to
84 visitors, 72 unique visitors from 10 MailMate
countries, 97 pageviews, 90% bounce rate
4 signed up users, 2 emails proofread

12. Learning Week #2
• We were not “hypothesis” driven in term of customer
archetype/segment – we spoke with everyone
(immigrants, internationals, students, professionals…)
– This resulted in us ADDING hypothesis and not removing/testing
hypothesis
– Also, we added just 1-2 more data points per segment. You can
make any deduction based on 1-2 data points !
– We were targeting interviews based on what’s easy for us and
not what makes sense.
• People did respond to our FB, LI posts (both friends who
weren’t in the inns, and strangers). People signed up for the
service.
• We were OPTIMISTIC, but CONFUSED (aka all over the
place).

13. CANVAS: WEEK 3 (FOLLOWING WEEK 2)
Proofreaders: Proofreaders: Proofreaders:
Recruiting and training
Get – Online ads, University Native English speaking
Payment Processor (PayPal) proofreaders
Flexible Income Source job posts students /young adults
Grow – Referral program
English tutorials from content Developing software
Users: Keep – Seniority pay rates English Teachers /Tutors
providers
Providing quality control
Proofreading emails Users: Users:
Websites for expats to reach
Get – Free trial,
potential users
Language Learning Grow – Referrals, Adult immigrants in the US
Keep – attractive long term
Companies that teach English
Communication coaching packages International students in
to foreign employees at
companies
Companiesthe US
employingInternational professionals
non-native
Proofreaders: English speakers emailers
Typo-prone
Software development University job boards
team Busy language learners
Referral program
Foreign freelancers / Companies employing non-
Online advertising
entrepreneurs living native English speakers
in the US
Users:
Online advertising
Foreign freelancers /
entrepreneurs living in the US
University Career &
International Centers
Paying proof-readers Pay per email
Software development Email packages, Monthly packages
ServerHosting costs Premium added for feedback
Paying transaction fees (PayPal credit card) Employers paying for employees

14. Some numbers from
So far…
1 repeat customer
end of week #3
6 email jobs
32 registered users

15. Some numbers from
week #3. Mind
Traffic report you, the website is
just an email
aggregator

16. Learning Week #3
• A company named Linguatech offers language learning to immigrant
employees in companies in bay area. They focus more on Language
Learning (we never went there)
• FB and such companies hire that company
– We spoke with head of Linguatech and team leader at FB
• We expected more than 6 emails proofread in 1.5 weeks. Expected more
than 32 registered users, and were disappointed. Should we have
expected more??
– We’ve sent it to very few people (~20-30)
– Had allocated $40 for Google ad-words
– Posted on our FB walls
• This was the first week we were “focused” on SMB foreign entrepreneurs
and independent contractors.
– While we were more focused than always, we were still not focused entirely
(some unrelated interviews on the expense of more related interview… it was
tough getting to the right people)
– Also, we learned how difficult it was to target people based on non-
demographic characteristics

17. CANVAS: WEEK 4
Entrepreneur / small
business owner
immigrants in the
U.S.
Paid search

18. Pivot
Why Pivot:
• Passion - Some of us were never really passionate about
the idea, others lost passion in frustration from not moving
forward.
• Difficulty to target customers – how do you find and
interview a dyslexic person ?? How do you find and
interview an immigrant who is a high-end freelancer?
• Mixed reviews from customers. Few very enthusiastic.
Some somewhat enthusiastic. Some don’t care
• Mismatch between our expectations for MVP’s results and
real results. Also mismatch between our expectations and
the effort we put in.
• Out of difficulties moving forward with “right”
interviews, and in attempt to re-energize the team we

19. Kasteko
History and Lessons

20. Elevator Pitch
• Kasteko is an online service that connects prospective college
students to current students at the universities they are
interested in. It arranges 30 minute video chats to talk about
admissions advice, student life, etc.

22. Learning #1: Customer Segments
Domestic International
- Supply is harder to - Supply is harder to
get get
Graduate
- No extra decision - No extra decision
makers makers
- Supply easy
- Supply easy
- Willingness to pay
- High willingness to
depends on distance
Undergraduate pay but niche market
- Have to deal extra
- Have to deal with
decision makers:
extra decision makers:
parents
parents
Decided to go with Undergraduate Internationals

23. Learning #2: Value Proposition
Experience VS Admissions
- Students mainly would use it to assess - People really care about where they
their fit to the school. can get in and how to get in.
- They need to feel a close human - Would be on the bad side of college
connection to the person who is admissions offices (not possible
informing them. partners)
- They feel comfortable enough with the - High willingness to pay in the
current substitutes: FB, relatives, etc. international market
- Many demographics do not care about
the fit, just increasing admission chance
Our service is not a morphine painkiller
in this arena, more like a nice to have.
Decided to go with admissions

24. Decision Process: Where we fit?
Kasteko

26. Learning #3: Channels
Directly to customers via search:
- Targeting via SEO directly to consumers is very
ineffective (0 signups)
- Low customer lifetime value
Via partners:
- International high schools interested in buying
service in bulk for their students
- Easier customer acquisitions and higher customer
lifetime value
Decided to partner with American high schools

27. Metrics that Matter

28. Metrics that Matter: Domestic / Int’l Schools
• 1-Session Price: $20 (market price)
• $15,000 / international school
• Y1 Breakeven Wage: Not possible
• Y3 Breakeven Wage: $4/session ($8/hour)
• Stanford student wage ($13/hour): breakeven in Y5
– Minimum efficient scale: 25,463 users (1.08% of eligible applicants)
Average customer acquisition 5-Year Projection
cost $5,000,000
$120
$4,000,000
$100
$80 $3,000,000 ANNUAL
REVENUE
$60 $2,000,000
ANNUAL
$40 COSTS
$1,000,000
$20
TOTAL
$0
$0 PROFIT
1 2 3 4 5
1 2 3 4 5
-$1,000,000

29. Metrics that Matter: Int’l Market / Int’l Schools
• 1-Session Price: $200 (market price)
• $30,000 / international school
• Y1 Breakeven Wage: $31/session ($62/hour)
• 2x current Stanford student wage ($26/hour):
– Minimum efficient scale: 890 users (0.5% of potential)
Average customer acquisition cost 5-Year Projections
$600 $8,000,000
$500 $7,000,000
$6,000,000
$400
$5,000,000 ANNUAL
$300 $4,000,000 REVENUE
$200 $3,000,000 ANNUAL
$2,000,000 COST
$100
$1,000,000 TOTAL
$0 PROFIT
$0
1 2 3 4 5
1 2 3 4 5

30. Lessons Learned
• Got passion?
• Meet often and all together
• Interviews:
– “right” v. “easy”
– Know how to interpret results
• Pain = business (product/market fit?)