Kobkrit Viriyayudhakorn, Ph.D.
kobkrit@gmail.com
http://www.kobkrit.com
Lecture 14 @ kobkrit.com
React-Native Course
Startup Pitching

Mobile App Startup
Important Links
• Source Codes 

https://github.com/kobkrit/learn-react-native
• Course Materials

http://www.kobkrit.com/category/programming/react-
native/
• Score Announcement

http://bit.ly/its484quizscore
• Facebook Group

https://web.facebook.com/groups/ReactNativeThai/

Pitch Deck
Cover Problem Solution Traction
Market Business
Team
Expertise
Vision
Competition
< Demo goes here
Ask
Cover
• Nice Teaser Picture
• Having your Company Logo,
Company Name.
• Elevator Pitch (High Concept
Pitch)
• What? How? Why?
• Youtube: Filckr for Video.
• Contact and Date
Problem
• What is the problem?
• How significant it is?
• Who has it? Who is the
most pain receivers for this
problem?
• How big it is?
Slidebean
Solutions
• How we solve the
problem?
• Why it make your
customers happy?
• Why we are better and
different?
FourSquare
Demo
• Money Shot Moment!
• Show Killer Feature.
• Demo Screen Shots
Video.
• Demo will FAILED.
Have a Backup.
https://www.youtube.com/watch?v=R0AoOvXxI4o
Traction
• How much money you can
make?
• How many active user?
• Testimonial
• Goal: We have valid
problem and valid
solution.
• Problem-Solution Fit.
Mixpanel
If you has no traction, your problem and solution is
just a fantasy — Peter Browne
Facebook
Map me
Man packs
Market Size
• Bigger is better!
• Estimate size of your
customer
• Top-down approach
• Bottom up approach
• What is their characteristic?
• Estimate your revenue?
Airbnb
Top-down approach
Square
Kibin
Top-Down approach
• Some research institute said Logistic market is
about 100billion USD.
• 10% of that deliveries item via motorcycle.
• We aimed to get 20% of that the total market size.
• Woot! Our business is 100billion x 10% x 20% =
2billion!!
Bottom-Up approach
• More reasonable.
• Right now, Our transaction size is 100USD
• We have 100,000 customer in Thailand
• Our customer purchases 2 time a year.
• Market Size is 100USD x 100K x 2 = 20mil USD
• Our market growing at 200% per year!
Business Model
• How do you make money?
• Unit economic
• Customer Acquisition Cost (CAC) <
Customer Lifetime Value (CLV)
• Top 1-3 source of revenue.
• Revenue Models
• Ecommerce? Subscription?
Adventising? Affilate?
Four Square
Youtube
Linked in
Expertise
• What is your unfair
advantage?
• Proprietary
Technology
• Patent
• Big Makes Lead
• Experienced Team
Square
Competition
• List all of your
competitors.
• Show how you’re better or
different.
• Find the most 2 values of
your customers care and
you are best on it.
Vision
• What is your future
plan?
• What is your ultimate
goal?
• What is your roadmap?
• How can you win
customer and win
market?
Team
• Who are you?
• What make you so
interesting?
• Geeks with deep tech
knowledge
• Entrepreneurs, who just
sold the company
• Sales/Marketing, who
bring a lot of customer.
Ask
• How much money do
you want?
• What will you do with
that?
• New Hires
• Marketing
• Infrastructure
Tourist Eye
Square
Recap
Cover Problem Solution Traction
Market Business
Team
Expertise
Vision
Competition
< Demo goes here
Ask
Normally ~5 minutes
Startup Metric
AARRR Metric
• AARRR Metric (from Dave McClure 500 Startup)
• Acquisition
• Activation
• Revenue
• Retention
• Referral
Unit Economics
• Getting a new customer, make us richer or
poorer?
• CLTV (Customer Lifetime Value) - Contribution
Margin (Profit) created by a customer in their life
time.
• CAC (Customer Acquisition Cost) - Cost to make
an visitor experience to our service.
• CLTV >> CAC
4 Stages of Startup
1. Hypothesis
• Have at lease five customers pay (revenue), Move next.
2. Problem/Solution Fit
• Have at least 40% retention rate, Move next.
3. Product/Market Fit
• Raise Fund now! Scaling up time!
• Positive Unit economics, CLTV >> CAC. Move next.
4. Product/Economy Fit
Hypothesis Stage
• Planning your business on your business model
canvas (or lean canvas)
• 9 Important sections in the business.
• Prove each section one-by-one until we got the
valid business model.
• Qualitative interview customer for problem and
solution.
General Development
Process
First 6 months
• Development of 3-D world graphics
• Make plug-in to connect with 15 existing chat apps.
• ICQ
• MSN
• …
• Invest time, staff, effort and a lot of money
• Yahoo Messenger
• AOL
0 customers
• Customer said: I don’t want to use imvu to chat with my
friends, because my friend don’t use imvu. I chat with
my friends with existing chat app.
• Another Customer said: We want to find a new friend
via imvu. Not want to talking with the old one.
• Founder of IMVU said: Why we invest 6 month to
make plugin to 15 existing chat app!?
• This worth nothing. Giving everybody in company for
6 months vacation is better!
How can we test the market
earlier without invest a lot of
efforts in making product?
We don’t want to build a
product that nobody
wants.
Lean Startup Methodology
Testing Problem
Making MVP
• Learn insight from the previous product interview.
• Start making an demo by making the MVP
(Minimum viable product)
• Simple web/app that can solve a problem for
customer
• Make it as fast as possible.
2 hours investment
Testing Solution
What next?
Make + Release your product.
Measure by AARRR
Learn / Pivot
Loop
Problem/Solution Fit
• Requirement
• Customer have strong demand to pay for your
product.
• At least 5 paying customers.
• Your solution can solve your customer’s problem.
Product/Market Fit
• Sean Ellis Test: At least 40% people feel disappointed
when you said they could no longer use the product.
• AARRR: At least 40% Retention Rate
• Depend on industry
• Social Network, at least 60%
• E-commerce, at least 20%
• Raise fund now! Time to scale.
Growth Hacking Now!
Investors want to see at least 20%
growth month-over-month

at this point.
Product/Economy Fit
• Be able to achieve attractive economics at scale.
• CLTV >> CAC
Failed to Product/Economic Fit
https://hackernoon.com/why-startups-fail-after-product-market-fit-f8c558e4f1f8#.wnsjo1y8r
Startup Funding
• Pre-Startup / Early Stage - Hypothesis
• Family & Friends
• Seed Round - Problem/Solution Fit
• Incubators, Angle Investors
• Series A, B,… - Product/Marketing Fit
• VC, At least 1 million USD
• Exit - Product/Economy Fit
• IPO, Sale
Techsauce

Startup Pitching and Mobile App Startup

  • 1.
    Kobkrit Viriyayudhakorn, Ph.D. kobkrit@gmail.com http://www.kobkrit.com Lecture14 @ kobkrit.com React-Native Course Startup Pitching
 Mobile App Startup
  • 2.
    Important Links • SourceCodes 
 https://github.com/kobkrit/learn-react-native • Course Materials
 http://www.kobkrit.com/category/programming/react- native/ • Score Announcement
 http://bit.ly/its484quizscore • Facebook Group
 https://web.facebook.com/groups/ReactNativeThai/

  • 4.
    Pitch Deck Cover ProblemSolution Traction Market Business Team Expertise Vision Competition < Demo goes here Ask
  • 5.
    Cover • Nice TeaserPicture • Having your Company Logo, Company Name. • Elevator Pitch (High Concept Pitch) • What? How? Why? • Youtube: Filckr for Video. • Contact and Date
  • 6.
    Problem • What isthe problem? • How significant it is? • Who has it? Who is the most pain receivers for this problem? • How big it is? Slidebean
  • 7.
    Solutions • How wesolve the problem? • Why it make your customers happy? • Why we are better and different? FourSquare
  • 8.
    Demo • Money ShotMoment! • Show Killer Feature. • Demo Screen Shots Video. • Demo will FAILED. Have a Backup. https://www.youtube.com/watch?v=R0AoOvXxI4o
  • 9.
    Traction • How muchmoney you can make? • How many active user? • Testimonial • Goal: We have valid problem and valid solution. • Problem-Solution Fit. Mixpanel If you has no traction, your problem and solution is just a fantasy — Peter Browne
  • 10.
  • 11.
    Market Size • Biggeris better! • Estimate size of your customer • Top-down approach • Bottom up approach • What is their characteristic? • Estimate your revenue? Airbnb Top-down approach
  • 12.
  • 13.
    Top-Down approach • Someresearch institute said Logistic market is about 100billion USD. • 10% of that deliveries item via motorcycle. • We aimed to get 20% of that the total market size. • Woot! Our business is 100billion x 10% x 20% = 2billion!!
  • 14.
    Bottom-Up approach • Morereasonable. • Right now, Our transaction size is 100USD • We have 100,000 customer in Thailand • Our customer purchases 2 time a year. • Market Size is 100USD x 100K x 2 = 20mil USD • Our market growing at 200% per year!
  • 15.
    Business Model • Howdo you make money? • Unit economic • Customer Acquisition Cost (CAC) < Customer Lifetime Value (CLV) • Top 1-3 source of revenue. • Revenue Models • Ecommerce? Subscription? Adventising? Affilate? Four Square
  • 16.
  • 17.
    Expertise • What isyour unfair advantage? • Proprietary Technology • Patent • Big Makes Lead • Experienced Team Square
  • 18.
    Competition • List allof your competitors. • Show how you’re better or different. • Find the most 2 values of your customers care and you are best on it.
  • 20.
    Vision • What isyour future plan? • What is your ultimate goal? • What is your roadmap? • How can you win customer and win market?
  • 22.
    Team • Who areyou? • What make you so interesting? • Geeks with deep tech knowledge • Entrepreneurs, who just sold the company • Sales/Marketing, who bring a lot of customer.
  • 23.
    Ask • How muchmoney do you want? • What will you do with that? • New Hires • Marketing • Infrastructure Tourist Eye Square
  • 24.
    Recap Cover Problem SolutionTraction Market Business Team Expertise Vision Competition < Demo goes here Ask Normally ~5 minutes
  • 25.
  • 26.
    AARRR Metric • AARRRMetric (from Dave McClure 500 Startup) • Acquisition • Activation • Revenue • Retention • Referral
  • 28.
    Unit Economics • Gettinga new customer, make us richer or poorer? • CLTV (Customer Lifetime Value) - Contribution Margin (Profit) created by a customer in their life time. • CAC (Customer Acquisition Cost) - Cost to make an visitor experience to our service. • CLTV >> CAC
  • 29.
    4 Stages ofStartup 1. Hypothesis • Have at lease five customers pay (revenue), Move next. 2. Problem/Solution Fit • Have at least 40% retention rate, Move next. 3. Product/Market Fit • Raise Fund now! Scaling up time! • Positive Unit economics, CLTV >> CAC. Move next. 4. Product/Economy Fit
  • 30.
    Hypothesis Stage • Planningyour business on your business model canvas (or lean canvas) • 9 Important sections in the business. • Prove each section one-by-one until we got the valid business model. • Qualitative interview customer for problem and solution.
  • 33.
  • 36.
    First 6 months •Development of 3-D world graphics • Make plug-in to connect with 15 existing chat apps. • ICQ • MSN • … • Invest time, staff, effort and a lot of money • Yahoo Messenger • AOL
  • 37.
    0 customers • Customersaid: I don’t want to use imvu to chat with my friends, because my friend don’t use imvu. I chat with my friends with existing chat app. • Another Customer said: We want to find a new friend via imvu. Not want to talking with the old one. • Founder of IMVU said: Why we invest 6 month to make plugin to 15 existing chat app!? • This worth nothing. Giving everybody in company for 6 months vacation is better!
  • 38.
    How can wetest the market earlier without invest a lot of efforts in making product? We don’t want to build a product that nobody wants.
  • 39.
  • 40.
  • 42.
    Making MVP • Learninsight from the previous product interview. • Start making an demo by making the MVP (Minimum viable product) • Simple web/app that can solve a problem for customer • Make it as fast as possible.
  • 43.
  • 44.
  • 46.
    What next? Make +Release your product. Measure by AARRR Learn / Pivot Loop
  • 47.
    Problem/Solution Fit • Requirement •Customer have strong demand to pay for your product. • At least 5 paying customers. • Your solution can solve your customer’s problem.
  • 48.
    Product/Market Fit • SeanEllis Test: At least 40% people feel disappointed when you said they could no longer use the product. • AARRR: At least 40% Retention Rate • Depend on industry • Social Network, at least 60% • E-commerce, at least 20% • Raise fund now! Time to scale.
  • 49.
    Growth Hacking Now! Investorswant to see at least 20% growth month-over-month
 at this point.
  • 50.
    Product/Economy Fit • Beable to achieve attractive economics at scale. • CLTV >> CAC
  • 51.
    Failed to Product/EconomicFit https://hackernoon.com/why-startups-fail-after-product-market-fit-f8c558e4f1f8#.wnsjo1y8r
  • 52.
    Startup Funding • Pre-Startup/ Early Stage - Hypothesis • Family & Friends • Seed Round - Problem/Solution Fit • Incubators, Angle Investors • Series A, B,… - Product/Marketing Fit • VC, At least 1 million USD • Exit - Product/Economy Fit • IPO, Sale
  • 55.