How to Build & Fund an Enterprise Startup in Today’s Tech Environment Tae Hea Nahm: Storm Ventures From Dropbox to Smartsheet, enterprise startups are having a banner year for exits. Learn what funding options exist to get your enterprise startup idea successfully off the ground and if venture capital is the right step for you.

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Funding the Startup Journey
Tae Hea Nahm, Managing Director & Author
Funding options exist to get your enterprise startup idea
successfully off the ground. Is venture capital the right step
for you?

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Tae Hea Nahm
Airespace founding CEO

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VC: THN
CEO’s: B Tinker
Join the conversation @S2THRIVAL
Help entrepreneurs
succeed now
&
anticipate
what’s next

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How does understanding the startup journey
impact my financing decision?

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Funding options exist to get your
enterprise startup idea successfully off
the ground.

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Funding options exist to get your
enterprise startup idea successfully off
the ground.
Is venture capital the right step for you?

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What do venture capitalists want?
1) High growth
2) Board seat to drive high growth and
the ultimate exit
Are you ok with both?

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If I were an entrepreneur today and
If I have multiple funding choices,
How would I raise money?
Funding source does not matter.
Pick investors to help find Go-To-Market
Fit.

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Why is Go-To-Market Fit so important for
financing?

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GTM Fit is the missing link to unlock growth
Join the conversation @S2THRIVAL
Product &
Technology
Go-To-
Market
GTM
Fit
GTM Fit also drives the company’s financing

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
FOUNDING PMF

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Reality
FOUNDING PMF
Unlock Growth

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
FOUNDING PMF
Feel stuck Reality

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
FOUNDING PMF
Feel stuck
• Missed expectations
• High frustration
• Question the people, product
• Running out of time and $
Reality
Feel Highly Stressed

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
andCapital
FOUNDING PMF GTM FIT
Reality
PMF is not enough
to unlock growth
Named it GTM Fit

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
andCapital
FOUNDING PMF GTM FIT
Reality
GTM Fit delivers
Predictable, Repeatable,
Scalable growth
Raises a strategic
question:
How fast should I grow?

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
andCapital
FOUNDING PMF GTM FIT
Reality
Growth Rate
(high)
Capital efficient
(patience)
(low)
death

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
andCapital
FOUNDING PMF GTM FIT
Reality
What is High Growth?
Battery Ventures’ Neeraj Agrawal:
“Triple, triple, double, double, double”
>$20m ARR – 2x/year
<$20m ARR – 3x/year

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
andCapital
FOUNDING PMF GTM FIT
Reality
“all about momentum”,
defined as:
• crossing $2-3M ARR
and projecting ~$8-10M,
• doing $10-20M+ ARR
and growing 100%”
Another VC said:

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
andCapital
FOUNDING PMF GTM FIT
Reality
What happens after GTM Fit?

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The Startup Journey
Valuation &
Fundraising
Ease
Founder Perception
Founders
Great team
Product
Some
Customers
Unlock Growth
andCapital
FOUNDING PMF GTM FIT
Reality
Virtuous Cycle

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The Startup Journey

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How should finding GTM Fit influence
my fundraising strategy?
1. Raise enough money to find GTM Fit
2. Pick investors who can help you find GTM Fit
3. Pick board members to help guide you
on your startup journey

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Advice #1 Raise enough money to find GTM Fit
Don’t run out of $ just before next funding oasis
GTM Fit oasis

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Beware of the disappearing oasis
due to market changes and sector rotation
(only permanent oasis is GTM Fit)

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Avoid one shot investors
Some VC’s may provide emergency water (inside
round)

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Avoid investors who are free riders
Inside rounds usually require everyone to do their pro
rata

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No Follow-on is a VC taint
Avoid investors who leave a ”mark”
No follow-on sends a strong negative signal

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Advice #2 Pick investors to help find GTM Fit

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What GTM Fit is not?
Join the conversation @S2THRIVAL
Founder Hero Selling
Relationship Selling Customers find you
Growth Machine with
regular people

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Product Led
Marketing LedSales Led
Storm helps find GTM Fit
Through 130+ enterprise investments
Portfolio –Guidespark/Aptrinsic, AtScale/Engagio, BNYM/LogicHub
Partners –Samsung/MobileIron, Cisco/SwiftStack
StormSummits –PRStrategy, Digital Health, Security
GTM Fit Thought Leadership GTM Consulting
GTM/Customer Relationship GTM Investments
WBD + Marketo/Engagio cofounder
with Storm portfolio

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BOOK SAMPLES VIDEOS TALKS
www.GTMFit.com
Business Schools
Industry
Accelerators/Incubators
Storm as Thought Leader on GTM Fit
Product-Led
Sales-Led
Marketing-Led
GTM playbooks

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GTM Model
Match how buyer decides to buy
Pick
GTM Playbook
Find & Win Same Customers
What’s The Wow?
Create
Repeatable
How find Go-To-Market Fit?
Urgent Wave
Why buy now?
Part of larger wave?
Line up
Join the conversation @S2THRIVAL

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Finding Go-To-Market Fit: Part 1
Urgent Wave
Lineup
Be open to----and test----adjacencies
Overcome founder bias
Founding
Idea
U rgent pain
Ideal C ustom er
Profile
Finding Urgency
Cast a slightly wider net during PMF
Join the conversation @S2THRIVAL
Why buy now?
Part of larger wave?

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GTM Model
Pick
Finding Go-To-Market Fit: Part 2
Urgent Wave
Lineup
Full
touch
Low-
touch
Zero-
touch
Product-
Led
Sales-
Led
M arketing-
Led
How do you pick one?
Join the conversation @S2THRIVAL
Match how buyer decides to buyWhy buy now?
Part of larger wave?

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Finding Go-To-Market Fit: Part 3
Join the conversation @S2THRIVAL
GTM Model
Match how buyer decides to buy
Pick
GTM Playbook
Find & Win Same Customers
What’s The Wow?
Urgent Wave
Why buy now?
Part of larger wave?
Line up
The Key
Create
Repeatable

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Not 30 page
document
Fits on 1 Page
(Maybe 2)
Join the conversation @S2THRIVAL

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Lay out customer journey1
Automated Manual
Product-led (self service)
Website Freetrial Drive
usage
Self-serve
topaid
Expand
withusage
NurtureQuality
Digital
Marketing
Marketing-
generatedlead
Sales-led
1st
meeting 2nd
meeting Evaluate
Exec
meeting Win
Quality
Marketing-led with inside sales (recurring)
Examples

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1 Lay out customer journey
Marketing-
generated lead 1st meeting 2nd meeting Eval Exec meeting Win
Quality
Represent the physics of the customer journey
Everyone must have same view
Don’t use the salesforce forecasting stages

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1 Lay out customer journey
Marketing-
generated lead 1st meeting 2nd meeting Eval Exec meeting Win
Quality
Product team doesn’t decide the wow…customers do
Harder than seems. Requires sacrifice & distillation
Ask for 2nd mtg Ask for Eval Boss to table Ask for Order
Have mobile devices and apps?
Users want to pick own device or
BYOD?
Are you worried about security of
your data?
Explore needs and
motivation
We solve security for
apps and devices
Innovative mobile
security platform for
BYOD or corporate
while protecting
privacy
Peer references and
product deep dive
Why beat competition
Future proof platform
Get eval approval
Get boss to table
Present test plan
results and customer
success plan
Initial pricing and
executive references
Turn up live instance
Customer execute test
plan and document
results
Find challenges
Initial order
Convert eval to live
Introduce customer
success team
What to ‘Do & Say’ at each stage?
What are the ‘wow’s?
2

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1 Lay out customer journey
Marketing-
generated lead 1st meeting 2nd meeting Eval Exec meeting Win
Quality
Have mobile devices and apps?
Users want to pick own device or
BYOD?
Are you worried about security of
your data?
Explore needs and
motivation
We solve security for
apps and devices
Innovative mobile
security platform for
BYOD or corporate
while protecting
privacy
Peer references and
product deep dive
Why beat competition
Future proof platform
Get eval approval
Get boss to table
Present test plan
results and customer
success plan
Initial pricing and
executive references
Turn up live instance
Customer execute test
plan and document
results
Find challenges
Initial order
Convert eval to live
Introduce customer
success team
What to ‘Do & Say’ at each stage?
What are the ‘wow’s?
2
SEO/M programs and website
landing
SDR outbound email and calls
Channels and ecosystem
referrals
1
st
meeting
presentation
Supporting videos and
product information
WOW #1
2nd meeting
presentation with
deep dive and
competitive
Key features for
differentiation
WOW #2
Exec summary talking
points and exec
references
Eval results in nice
dynamic dashboard
Executive calls
Easy eval turn-on and
tutorial
Eval checklist
Competitive traps
Engineer hotline for
issues
Quick quoting tool
Click thru legal
agreements
Welcome kits and
training video
What’s the rest of Company do to
support the playbook?3
Powerful for
Team

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Marketing-
generated lead 1st meeting 2nd meeting Eval Exec meeting Win
Quality
Have mobile devices and apps?
Users want to pick own device or
BYOD?
Are you worried about security of
your data?
Explore needs and
motivation
We solve security for
apps and devices
Innovative mobile
security platform for
BYOD or corporate
while protecting
privacy
Peer references and
product deep dive
Why beat competition
Future proof platform
Get eval approval
Get boss to table
Present test plan
results and customer
success plan
Initial pricing and
executive references
Turn up live instance
Customer execute test
plan and document
results
Find challenges
Initial order
Convert eval to live
Introduce customer
success team
What to ‘Do & Say’ at each stage?
What are the ‘wow’s?
2
SEO/M programs and website
landing
SDR outbound email and calls
Channels and ecosystem
referrals
1
st
meeting
presentation
Supporting videos and
product information
WOW #1
2nd meeting
presentation with
deep dive and
competitive
Key features for
differentiation
WOW #2
Exec summary talking
points and exec
references
Eval results in nice
dynamic dashboard
Executive calls
Easy eval turn-on and
tutorial
Eval checklist
Competitive traps
Engineer hotline for
issues
Quick quoting tool
Click thru legal
agreements
Welcome kits and
training video
What’s the rest of Company do to
support the playbook?3
Metrics “come for free”
4

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Marketing-
generated lead 1st meeting 2nd meeting Eval Exec meeting Win
Quality
SEO/M programs and website
landing
SDR outbound email and calls
Channels and ecosystem
referrals
1
st
meeting
presentation
Supporting videos and
product information
WOW #1
2nd meeting
presentation with
deep dive and
competitive
Key features for
differentiation
WOW #2
Exec summary talking
points and exec
references
Eval results in nice
dynamic dashboard
Executive calls
Easy eval turn-on and
tutorial
Eval checklist
Competitive traps
Engineer hotline for
issues
Quick quoting tool
Click thru legal
agreements
Welcome kits and
training video
Final Result: GTM PLAYBOOK
Have mobile devices and apps?
Users want to pick own device or
BYOD?
Are you worried about security of
your data?
Explore needs and
motivation
We solve security for
apps and devices
Innovative mobile
security platform for
BYOD/corporate while
protecting privacy
WOW #1: Sel Wipe
Peer references and
product deep dive
Why beat competition
Future proof platform
Get eval approval
WOW #2: Enterprise
AppStore
Get boss to table
Present test plan
results and customer
success plan
Initial pricing and
executive references
Turn up live instance
Customer execute test
plan and document
results
Find challenges
Initial order
Convert eval to live
Introduce customer
success team
Ask for 2nd mtg Ask for Eval Boss to table Ask for Order

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GTM Model
Direct, Channel, Web,
Freemium, Trial & Upsell
Marketing-led, Sales-led
Decide
GTM Playbook
Find & Win Same Customers
What’s The Wow?
Create
Repeatable
GTM Fit: 3 parts working together
Urgent Wave
Why buy now?
Part of larger wave?
Lineup
Join the conversation @S2THRIVAL

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©2018, BobTinker &TaeHeaNahm
What does GTM-Fit
feel like?
Momentum

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©2018, BobTinker &TaeHeaNahm
Leads & pipeline grow
Deals close predictably
Additional sales & marketing
investment grows pipeline
New reps quickly learn to win
Company knows what to do
With GTM Fit
Growth Unlocks

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#3 Pick board members to help guide
you on the startup journey

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Picking a board member = Picking a boss

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Change
CEO
Exit
Next
Round
Potential tension points
…or Δ the people

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Company
Δ
People
Δ
…or Δ
the people
Growth drives change
Role
Δ

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Company
Δ
People
Δ
…or Δ
the people
Growth drives change
New Role
Changing Role with no Δ in title
Old Role
Unlearn Learn

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Painful challenge
A B
The very things that made you
successful
B C
can hold you back
or kill you
© 2017, Bob Tinker

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©2018, BobTinker &TaeHeaNahm

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Join the conversation @S2THRIVAL
Captain America
One of the Troops
Avengers
Band of Superheroes
Professor Xavier
University President
CEO: 3 very different roles over time

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Captain America
One of the Troops
Avengers
Band of Superheroes
Unlearn Moment CEO
Unlearn
Relinquish control…
….while maintain control
Change execution:
Organic to organized

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Join the conversation @S2THRIVAL
Davy Crocket
Path through woods
And the VP Sales
Dwight Eisenhower
Architect & execute
Joan of Arc
Braveheart
Lead great warriors!

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Joan of Arc
& Braveheart
Warrior Leader
Dwight
Eisenhower
Sales Architect
Unlearn Moment: VP Sales
Unlearn
Warrior à War Room
Change execution
Win deals à Win war
(playbook) (machine)
Join the conversation @S2THRIVAL

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©2018, BobTinker &TaeHeaNahm
Really Hard
It’s hard

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Spectacular Learning
and Unlearning
for you and the team
Join the conversation @S2THRIVAL

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Fundraising advice for early startups
Raise enough money to Find GTM Fit
Pick investors who can help you Find GTM-Fit
Pick board members who can help guide
through the startup journey

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…and most importantly
Just get to GTM Fit
THANK YOU!