This document discusses the low odds of startup success and reasons why startups fail. It emphasizes the importance of having a compelling reason to buy, which is a must-have value proposition that provides customers with a strategic competitive advantage, significantly improves productivity, or reduces costs. The document urges startups to identify their compelling reason to buy and offers help to realize their full potential and win.

1. The Compelling Reason to Buy
MobileMonday Oulu 9.1.2012
Risto Rautakorpi
Co-Founder
Gorillaventures Oy

2. Odds for Startup success
50 % of starters gets seed funding
50 % of seed funded pitches to VC
50 % VC analyses of offered cases
1% VC invests of analysed cases
10 % VC success rate
0.0125 %

3. Why Startups fail?
F
G2M G2M
F G2M
1.Finance (2 of top 6)
2.Go To Market (3 of top 6)

4. ”The only thing that matters”
16.11.2010 G2M 4

5. Make your message clear
1. What do you do?
2. What problem do you solve?
3. Who is your customer?
4. Why should they care?

6. The Compelling Reason to Buy
• Only a Must Have Value Prop is strong enough
• Should-have propositions won’t normally cut it

7. 3 sources of must-have conditions
(G Moore, pg 102-103)
• It enables a previously unavailable strategic capability that
provides a dramatic competitive advantage in an area of
prime operational focus
• It radically improves productivity on an already well-
understood critical success factor
• It visibly, verifiably, and significantly reduces current totaö
overall operating costs

8. What is your compelling reason to
buy?

9. Advertising section

10. Finland has many promising
start-ups
• Very few of them ever reach international scale and success
• Why not better than that?
• We want to understand the reasons and help the startups to
fix them

11. Do you want to realize your full
potential and win?
Email: risto.rautakorpi@gorillaventures.fi
Twitter: @risto_r