1. When The Boardroom is Bits Steve Blank www.steveblank.com Twitter: sgblank Slides: www.slideshare.net/sblank

2. Reminder about the Speaker W.T.F.D.I K. About Angel Investing

3. Role of an Angel Dumb Money Smart Money Connections Connections to more money Advice Good Advice Wisdom

4. First Observations From Abroad

5. #1 Startups are Smaller Versions of Large Companies

6. #1 × Startups are Smaller Versions of Large Companies oops

7. #2 A startup is all about focus and execution of the business plan

8. #2 A startup is all about focus and execution of the business plan No business plan survivesfirst contact with customers ✓

9. #3 A startup is all about a great idea

10. #3 A startup is all about a great idea An A-teamwith a B-product always beats a B-team with an A-product ✓

11. #4 Companies execute business plansStartups search for business models

12. #3 Companies execute business plansStartups search for business models

13. #4 Companies execute business plansStartups search for business models ✓

14. #5 A startup is a temporary organization designed to search for a scalable and repeatable business model

15. #6 Startups need their own tools, different from those used in existing companies

16. #6 Startups need their own tools, different from those used in existing companies

17. #7 Customer Development = process to searchBusiness Model Canvas is the ScorecardAgile Engineering is How We Build Startups

19. Demo, demo, and demo!!

20. Proximity is paramount

21. Technology Design

22. Marketing

23. Demo and customer feedback

24. Research Labs

25. Equipment Manufacturers

26. Distribution Network

27. Service Providers

28. Cost Reduction

29. Remove labor force pains

30. Eliminate bio-waste hazards

31. Organic Farmers

32. Weeding Service Providers

33. Conventional Farmers

34. IP – Patents

35. Video Classifier Files

36. Robust Technology

37. Dealers

38. Direct Service

39. Indirect Service

40. … then Dealers

41. Asset Sale

42. Direct Service with equipment rental

43. … then Asset SaleValue-Driven

44. #9 Customer Development is the process used to searchBusiness Model Canvas is the ScorecardAgile Development is How We Build Startups

46. 52% less likely to scale prematurely than startups that pivot >2 times or not at all Startup Genome Report

47. Board Meetings Haven’t Evolved

48. We Act Like It’s the 19th Century Why do we need to get together in one room? Why do we need to wait a month to see progress? Why don’t we have standards for what you want? Why haven’t we adopted the tools we build/sell?

49. How to Run a Board Meeting Logistics Send out board materials 2 days before, have board dinner Approve minutes, stock grants Business Highlights/Lowlights summary of key events since last meeting Financials versus Budget waterfall charts Management asks the board to help strategy, markets, key hires, introductions. Executive session Meet without management to discuss performance

50. How to Run a Board Meeting Logistics Approve minutes, stock grants Business Highlights/Lowlights summary of key events since last meeting Financials versus Budget waterfall charts Management asks the board to help strategy, markets, key hires, introductions. Executive session Meet without management to discuss performance Misc Send out board materials 2 days before, have board dinner Why?

51. What’s Wrong With a Board Meeting? Time between meetings (every 4-6 weeks) Strategy-to-tactic-to implementation lag Often no follow-up on the outcomes Diffuse board member attention (sits on 6-12 boards) Punctuated Exec Staff Performance “The Get Ready for the Board Meeting” drill It’s often a performance rather than a snapshot No standards for what each side does What is the entrepreneur supposed to be doing? What are the board members supposed to be contributing?

52. What’s Wrong With a Board Meeting? Time between meetings (every 4-6 weeks) Strategy-to-tactic-to implementation lag Diffuse board member attention (sits on 6-12 boards Punctuated Exec Staff Performance “The Get Ready for the Board Meeting” drill It’s often a performance rather than a snapshot No standards for what each side does What is the entrepreneur supposed to be doing? What are the board members supposed to be contributing? Why?

53. Solution:Make The Boardroom Bits

54. We Can Do This Via the Net

55. We Can Do This Via the Net 24/7

56. We Can Do This Via the Net Connecting Advisors to/from Anywhere

57. Focus on What’s Important It’s about the search for the business model Not income statement, cash flow, balance sheet Advice/Guidance about metrics around the search What are the Business model hypotheses? What are the most important hypotheses to test now? Progress of validating each hypotheses What are the iterations and Pivots – and why?

58. Continuous Information Access Founders / mgmt team invest 1 hour a week Structured blog Unstructured data Formal business model canvas Real-time advisor/board feedback

59. We Made Students Blog Their Progress

60. How? Customer Development The Process Narrative Interviews Surveys Videos Prototypes Business Model Canvas Scorekeeping Real-time Feedback Physical Reality Checks Skype Face-to-face

61. We Made Students Blog Their Progress It Changed Everything

62. Interview

63. Photos Videos

64. Surveys

65. Interview & Photos

66. Competitive Analysis

67. Key Findings

68. A/B Test Results

69. Key Question

70. Strategy

71. Business Model Canvas as the Scorecard

73. Business Canvas Change Progress 1

74. Business Canvas Change Progress 2

75. Business Canvas Change Progress 3

76. Business Canvas Change Progress 4

77. Business Canvas Change Progress 5

78. Business Canvas Change Progress 6

79. Business Canvas Change Progress 7

80. Demo Ben Mappen Lean LaunchLab

81. Product Demo

83. CANVAS diagram is interactive and “stateful”

84. CANVAS diagram is interactive and “stateful” Enter your hypotheses here

85. CANVAS diagram is interactive and “stateful” Test your hypotheses and record learnings in blog format

86. CANVAS diagram is interactive and “stateful” Test your hypotheses and record learnings in blog format Interviews Surveys Videos Photos etc

87. CANVAS diagram is interactive and “stateful” Test your hypotheses and record learnings in blog format Invite your advisors and investors to your project

88. CANVAS diagram is interactive and “stateful” Test your hypotheses and record learnings in blog format Invite your advisors and investors to your project They can view progress by flipping thru your CANVAS diagrams

89. CANVAS diagram is interactive and “stateful” Test your hypotheses and record learnings in blog format Invite your advisors and investors to your project They can view progress by flipping thru your CANVAS diagrams They can post feedback and leave comments inline

90. CANVAS diagram is interactive and “stateful” Test your hypotheses and record learnings in blog format Invite your advisors and investors to your project They can view progress by flipping thru your CANAVAS diagrams They can post feedback and leave comments inline Get email alert when new feedback comes in

91. CANVAS diagram is interactive and “stateful” Test your hypotheses and record learnings in blog format Invite your advisors and investors to your project They can view progress by flipping thru your CANAVAS diagrams They can post feedback and leave comments inline Get email alert when new feedback comes in The Lean Board Meeting

92. Sign up for private beta (FREE) http://www.leanlaunchlab.com @leanlaunchlab Ben Mappen benmappen@gmail.com

93. What Does this Change?For Angel-Funded Startups Angel funded startups can now get experienced advice No longer requires board commitment for involvement Encourages investors who need visibility Ends repetition at each investor coffee Turns adhoc startups into strategy-driven startups Invites investor participation in the process Professionalize the “throw it against the wall and see if it sticks” Highly time-efficient for investor and founders Eliminates Geography as a barrier to investment!

94. What Does this Change?For VC’s and Angels For the first time a structure for “search” Real-time monitoring of startup progress Zero-lag for coaching and course-correction Immediate follow-up on board meeting outcomes Allows a single VC to multiply their reach and/or depth Eliminates Geography as a barrier to investment!

95. Thanks