This document provides advice on how startups can improve their chances of obtaining funding. It discusses four categories that investors evaluate - intangibles, traction, execution, and concept viability. It emphasizes the importance of proving product-market fit before launching by getting early customer feedback through iterative testing and metrics tracking. Additional tips include focusing on the most engaged users and key metrics, killing underperforming features, and addressing problems in management, product development, and marketing. The overall message is that startups need to demonstrate real customer need, value proposition, and ability to execute before expecting to receive funding.

1. How to Become Fundable?
vs.
How to Get Funding?
Observations from a Silicon Valley Nerd

2. About Apaxys Ventures
USA Russia
Belarus
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3. How Good Is This Opportunity?
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4. 4 Categories of Investor Evaluation:
Intangibles: team, ego, appearance
Traction: scorecard of accomplishments
Execution: the ability to “get shit done”
Concept Viability: can this make money?
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5. 4 Categories of Investor Evaluation:
Intangibles: team, ego, appearance
Traction: scorecard of accomplishments
Execution: the ability to “get shit done”
Concept Viability: can this make money?
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6. What Affects Traction?
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7. What Affects Traction?
Startups have problems in 3 key areas:
•Management: Set Priorities, Define Key Metrics
•Product: Build “Right” Features. Measure, Iterate.
•Marketing: Distribution, Distribution, Distribution.
(Search, Social, Mobile)
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8. Exposure to a Problemneed 3rd Confirm need L Prove concept
P A
demographic or U
A
industry with Gap  unmet R
Identify test users N Get testimonial
C
monetizable T
Define rev model Y Refine value prop H Exchange value
problems & gaps
Founder(s)
Committed
Able
Scope Project Triage Concept
Milestones Scalable need exists
MVTeam ITER We can deliver
MVTimeline FIN. Let’s do v 2.0
MVResources SALES Team built
UX Prep v 2.0
Litmus Test
DEV Ops in place
Gauge Metrics
Runway in place
Prove Team
MKTG
Public Launch!
OPS
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9. Exposure to a Problemneed
demographic or
industry with Gap  unmet Ready to go?
monetizable
Define rev model
problems & gaps
Founder(s)
Committed
Able
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10. Exposure to a Problemneed 3rd Confirm need
demographic or
industry with Gap  unmet
P
A
R
Discover Customers
Identify test users
monetizable T
Define rev model Y Refine value prop
problems & gaps
Founder(s)
Committed
Able
Scope Project
Milestones
MVTeam
MVTimeline
MVResources
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11. Discover Customers
(Steve Blank, SteveBlank.com)
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12. Exposure to a Problemneed 3rd Confirm need L Prove concept
P A
demographic or U
A
industry with Gap  unmet R
Identify test users N Get testimonial
C
monetizable T
Define rev model Y Refine value prop H Exchange value
problems & gaps
Founder(s)
Committed
Able
Scope Project
Milestones
MVTeam ITER
MVTimeline FIN.
MVResources SALES
UX
Litmus Test
DEV
Gauge Metrics
Prove Team
MKTG
OPS
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13. Before “Launch”- Product/Market Fit
(Sean Ellis, Startup-Marketing.com)
Growth
Transition to
Growth
Product/Market Fit

14. Before “Launch” - The Lean Startup
• Talk to Customers; Discover Problems
• Progress ≠ Features (Less = More)
• Fast, Frequent Iteration (+ Feedback Loop)
• Measure Conversion; Compare 2+ Options
• Focus on Product/Market Fit (don’t “launch” before)
• Keep it Simple & Actionable
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15. Before “Launch”- Iterate!
(Eric Ries, StartupLessonsLearned.com)
IDEAS
LEARN BUILD
DATA
CODE
MEASURE

16. Before “Launch” - Metrics
• Acquisition: users come to site from various channels
• Activation: users enjoy 1st visit: "happy” experience
• Retention: users come back, visit site multiple times
• Referral: users like product enough to refer others
• Revenue: users conduct some monetization behavior

17. Before “Launch” - Metrics
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18. Just Give me the GOOD Metrics.
Users, Pages, Clicks, Emails, $$$...?
Q: Which of these is best? How do you know?
• 1,000,000 one-time, unregistered unique visitors
• 500,000 visitors who view 2+ pages / stay 10+ sec
the
good • 200,000 visitors who clicked on a link or button
stuff.
• 20,000 registered users w/ email address
• 2,000 passionate fans who refer 5+ users / mo.
• 1,000 monthly subscribers @ $5/mo
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19. Kill a feature
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20. Kill a feature
• Something Sucks. Find It. KILL It.
• Find the ONE THING that users LOVE.
• How to figure out? TAKE. SHIT. AWAY.
• When they SCREAM, you’ve FOUND it.
• Then Bring it Back… Only Better.
• Tip: KILL a Feature Every Week.

21. Exposure to a Problemneed 3rd Confirm need L Prove concept
P A
demographic or U
A
industry with Gap  unmet R
Identify test users N Get testimonial
C
monetizable T
Define rev model Y Refine value prop H Exchange value
problems & gaps
Founder(s)
Committed
Able
Scope Project Triage Concept
Milestones Scalable need exists
MVTeam ITER We can deliver
MVTimeline FIN. Let’s do v 2.0
MVResources SALES Team built
UX Prep v 2.0
Litmus Test
DEV Ops in place
Gauge Metrics
Runway in place
Prove Team
MKTG
Public Launch!
OPS
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22. What Does Silicon Valley Have that Russia Doesn’t?
• Good food?
• Good weather?
• Good programmers?
• Good businessmen?
• $ for ideas?
• Better access to information?
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23. What Does Silicon Valley Have that Russia Doesn’t?
• Good food?GREAT FOOD BOTH PLACES.
• Good weather?COLD MAKES YOU WORK HARDER!
• Good programmers? PLENTY!
• Good businessmen?SERGEY BRIN AND HOST OF
OTHERS ORIGINATE FROM RUSSIA
• $ for ideas? US GOV’T PROVIDES NO FUNDING.
• Better access to information?PACKETS DON’T TAKE
YEARS TO CROSS THEBORDER.
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24. I Thought Silicon Valley Funded Ideas!
(Kinda true in late 1990’s, but…)
Angels Today? Looking for:
–Validated idea & team
–Fanatical, paying customers.
Ideas are worthless. The value is in execution.
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25. You Need To:
• Stop playing at entrepreneurship and start
some real companies.
• Stop waiting for government grants or money
from investors.
• Start selling to international market.
• Start shooting for billion dollar opportunities.
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26. Russia Needs…
Successful & visible Internet
entrepreneurs.
Role models.
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27. Russia Needs…
You.
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28. Russia Needs…
You.
to be rich, successful, visible, popular,
supportive, and awesome.
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29. So…
Get Started.
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30. 30

31. Thank You.
Renat Khasanshyn
renat.k@apaxys.com
@renatkhasanshyn
Skype: renatk
+1 (650) 395-7002
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