The question Leandro Finol (Executive Director @ The Idea Center) put to me was what gets me interested in investing in a given startup. The slides were my attempt to synthesize the last 3 years into a response.

1. Miami Idea Center
Sean Ammirati
@SeanAmmirati
Partner, Birchmere Ventures
Adjunct Professor, Carnegie Mellon University
February 19, 2015
RAISING VENTURE CAPITAL

2. Most Startups FAIL
The Reason

3. NO ONE WANTS
what they’ve built.
IS BECAUSE...

4. WHY IS THIS
IMPORTANT?

5. Dec 2006
Conviction to
build FeedHub
Aug 2007
Private Beta of
FeedHub
Launch FeedHub
@ Demo 2007
Sept 2007
10 MONTHS
“STEALTH MODE”

9. Dec 2006
Conviction to
build FeedHub
Aug 2007
Private Beta of
FeedHub
Launch FeedHub
@ Demo 2007
Sept 2007
10 MONTHS
“STEALTH MODE”
Wasted Time

10. “Launch early enough to be
embarrassed by your
product’s first version”
~ Reid Hoffman
Co-Founder & Chairman
LinkedIn

11. BUILD
MEASURE
LEARN
IDEAS
CODEDATA
Minimally
Viable
Product

12. BUILD
MEASURE
LEARN
IDEAS
CODEDATA
#CMULean
Minimally
Viable
Awesome
Product

13. Source: The Entrepreneur's Guide to Customer Development
MAP #1
PPC Campaign
Landing Page
MAP #2
Product Drawings
Detailed Spec
MAP #3
Prototype
Functional Output
Features / Benefits
description
‘More info’
Call to Action
Face-to-face
technology demo
Field Pilot
Market insight
Find early adopters
Locate Strategic
partners
Seed Funding
Paid-beta customers
Revenue
Customer Validation
Capital Investment
Customer
Interaction
Objective
MAP #1 > Concept MAP #2 > P-M Eval MAP #3 > P-M Fit

14. Past:
Research Fellow, CMU Software Industry Center
Director Business Development, Peak Strategy
(sold to Morgan Stanley)
CEO & Co-Founder, mSpoke (sold to LinkedIn)
COO, ReadWriteWeb (sold to SAY Media)
Now:
Partner, BirchmereVentures
Adjunct Professor of Entrepreneurship,
Carnegie Mellon University

15. A VC’s Job:
Step 1: Find the best companies
Step 2: Invest on rational terms
Step 3: Help them grow

16. 1 Investment:
100 - 150 Pitches

17. The Relevant Question ...

18. What makes a GREAT
Investment?
The Relevant Question ...

19. 1 Fantastic Team
2 Large Market
3 True Differentiation
4 MarketValidation
5 Fit with the Fund
What makes a GREAT
Investment?

20. Hustler
+
Hacker
(full time)
The Team ...

21. VC
vs
Angel
(not necessarily a reflection on the biz)
Large Market ...

22. Patents
Engaged Community,
Strategic Relationships,
etc ...
True Differentiation ...

23. MarketValidation
MAP #1
PPC Campaign
Landing Page
MAP #2
Product Drawings
Detailed Spec
MAP #3
Prototype
Functional Output
Features / Benefits
description
‘More info’
Call to Action
Face-to-face
technology demo
Field Pilot
Market insight
Find early adopters
Locate Strategic
partners
Seed Funding
Paid-beta customers
Revenue
Customer Validation
Capital Investment
Customer
Interaction
Objective
MAP #1 > Concept MAP #2 > P-M Eval MAP #3 > P-M Fit

24. MarketValidation
MAP #1
PPC Campaign
Landing Page
MAP #2
Product Drawings
Detailed Spec
MAP #3
Prototype
Functional Output
Features / Benefits
description
‘More info’
Call to Action
Face-to-face
technology demo
Field Pilot
Market insight
Find early adopters
Locate Strategic
partners
Seed Funding
Paid-beta customers
Revenue
Customer Validation
Capital Investment
Customer
Interaction
Objective
MAP #1 > Concept MAP #2 > P-M Eval MAP #3 > P-M Fit
$ $$ $$$$Funding

25. Fit with the Fund ...
Sector
Stage
Partner can
add value

26. 1 Fantastic Team
2 Large Market
3 True Differentiation
4 MarketValidation
5 Fit with the Fund
What makes a GREAT
Investment?

27. THANK YOU
@SEANAMMIRATI
SUBSCRIBE TO EMAIL NEWSLETTER:
SEANAMMIRATI.COM

28. PHOTO CREDITS
Slide 6: http://www.flickr.com/photos/nasa_goddard/8434074140/
Slide 8: http://www.flickr.com/photos/data70/4748860721/
Slide10: http://www.flickr.com/photos/joi/1431818434/