This is a presentation delivered at Product Development Days in which I discuss the criteria used by investors who evaluate software created by startups. It's all about traction, not features!

1. You need more traction!!
Investor criteria when assessing a product
Adam Komarnicki
Product Development Days conference, 20 October 2015, Kraków

2. Innovation Nest
#venturecapital #startups #investing
Fundacity
#SaaS #product #fundraising
Freebee
#loyalty #mobile #customers #analytics
@AKomarnicki

3. Disclaimer:
All comments here refer
to evaluating a PRODUCT

4. PRODUCT – a piece of software
you can sell at scale

5. Investors don’t care
about your product

6. Investors – they may be cool and friendly…

7. But make decisions with one simple objective

8. Whereas you see a set of features

9. Investors want to see…

10. Give them what they want

12. Not all numbers make good metrics
Not all numbers make good metrics

13. Be careful with
vanity metrics

14. Numbers with no direct relation to revenue are
„vanity metrics”
App downloads Visitors Press mentions Social media activity

15. Number of paying customers
MRR, Revenue growth rate
LTV/CAC
Key operating metrics
Product metrics that matter

16. Growth of key metrics = TRACTION

17. Presenting a product

18. FORGET ABOUT THIS, BUT…

19. TELL A STORY, NOT FEATURES

20. AVOID DEATH BY PRESENTATION,
ENGAGE IN THE CONVERSATION

21. AVOID TECHNICAL DETAILS - DON’T
MAKE INVESTOR FEEL STUPID

22. RANDOM TIPS
• Not having a product person in a team is a disadvantage
• “We need to see more traction” can mean lots of things
• If investor does not ask to see your product around the first meeting, it’s
not smart money
• It’s null until you ship - traction for a feature used in another product is
not an indication of success of the new product

23. IS GOOD, ANY QUESTIONS?