@
          www.TandemEntrepreneurs.com


Adrenaline Startups and Rapid-Fire Marketing
Where is Your Risk?




                  Private & Confidential
Conventional Funding Milestones
                                                   Based on slides from
                  ...
A Different Set of Milestones


            Customer               Partner                 Channel
            Discovery  ...
Today: Market Fit is Cheaper to Explore


  Build         Young Teams, Open Source

  Deploy        With Low Cap-Ex: The C...
Heads I win, Tails I don’t Lose Much

Burn →        $0.5M                 $1.5M                    $20M


             Cus...
Conventional Venture Capital




                                             5 yr returns are negative

                 ...
What’s Changed : Exits Are Smaller




                                        73%

          57%

                       ...
Model Supports Many Possible Exit

Burn →        $0.5M                 $1.5M                    $20M


             Custom...
Investment Models Compared

Conventional Model
 Invest in a 5% chance of creating a few 100M+ Business
 Capitalize the b...
Increasing the Probability of Success

• Redefine Success to include Smaller Exits
• Contain the Market Risk Quickly and C...
Tandem Entrepreneurs

                         Seasoned Entrepreneurs
                          working in tandem with mul...
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Adrenaline Startups

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An Alternate View to Startups

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Adrenaline Startups

  1. 1. @ www.TandemEntrepreneurs.com Adrenaline Startups and Rapid-Fire Marketing
  2. 2. Where is Your Risk? Private & Confidential
  3. 3. Conventional Funding Milestones Based on slides from Vinod Khosla Idea is Traction Product Feasible Valuation $0.5M $3.0M $8.0M $13.5M $150M Risk (ß) Capital Seed R&D Go-to-Market Expansion Funding Capital Captial Captial
  4. 4. A Different Set of Milestones Customer Partner Channel Discovery Validation Validation Customer Channel Channel Validation Discovery Scaling Product Product Product Validation Tuning Expansion Partner Pricing Pricing Discovery Discovery Opt Proven Proven Proven Proven Team Value Business Channel
  5. 5. Today: Market Fit is Cheaper to Explore Build Young Teams, Open Source Deploy With Low Cap-Ex: The Cloud Market With Social Distribution/Marketing 10x lower Cost to Establish Adoption Private & Confidential
  6. 6. Heads I win, Tails I don’t Lose Much Burn → $0.5M $1.5M $20M Customer Partner Channel Discovery Validation Validation Customer Channel Channel Validation Discovery Scaling Product Product Product Validation Tuning Expansion Partner Pricing Pricing Discovery Discovery Opt Proven Proven Proven Proven Team Value Business Channel
  7. 7. Conventional Venture Capital 5 yr returns are negative Private & Confidential
  8. 8. What’s Changed : Exits Are Smaller 73% 57% < 30M 23% 100M+ 12% Data from
  9. 9. Model Supports Many Possible Exit Burn → $0.5M $1.5M $20M Customer Partner Channel Discovery Validation Validation Customer Channel Channel Validation Discovery Scaling Product Product Product Validation Tuning Expansion Partner Pricing Pricing Discovery Discovery Opt Proven Proven Proven Proven Team Value Business Channel
  10. 10. Investment Models Compared Conventional Model  Invest in a 5% chance of creating a few 100M+ Business  Capitalize the business with US $3-5M - A Round  Success = Big Exits and founders make 10’s of millions New Model  Invest in the likely chance of creating MANY 10M+ Businesses  Capitalize the business with US $500,000 of initial capital  Success = Cash Flow or Exits where founders make millions Private & Confidential
  11. 11. Increasing the Probability of Success • Redefine Success to include Smaller Exits • Contain the Market Risk Quickly and Cheaply • Get an A+ Team Private & Confidential
  12. 12. Tandem Entrepreneurs Seasoned Entrepreneurs working in tandem with multiple Small Founding Teams applying Modest Capital to efficiently build Simple Highly Leveraged Services and take companies to High Probability Exits Private & Confidential

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