Se ha denunciado esta presentación.
Utilizamos tu perfil de LinkedIn y tus datos de actividad para personalizar los anuncios y mostrarte publicidad más relevante. Puedes cambiar tus preferencias de publicidad en cualquier momento.

BDV Webinar Series - Tony - Help to Get Investors Ready

82 visualizaciones

Publicado el

The webinar intends to provide some tips to help start-ups involved in Big Data and data-driven economy to successfully face the investment phase and to maximize their chances to get external funding for their future endeavor.

Publicado en: Datos y análisis
  • Sé el primero en comentar

  • Sé el primero en recomendar esto

BDV Webinar Series - Tony - Help to Get Investors Ready

  1. 1. Webinar: Help to get investor ready Tonny Velin (CEO Answare) 03/12/2019
  2. 2. Goal ▪ Help START-UPS and SMEs involved in Big Data and data-driven economy to successfully face the INVESTMENT PHASE and to maximize their chances to get external funding for their future endeavor. ▪ Note: difference between a SME and a start-up -> scalability.
  3. 3. Some tips ▪ The ability to learn from missteps distinguishes a successful startup. ▪ Failure is an integral part of the search for a business model. ▪ No business plan survives first contact with customers. ▪ For an investor, what is important is not the product but how to sell it on the market. Source: The Startup Owner’s Manual
  4. 4. Traditional models for product development Source: The Startup Owner’s Manual New Product Introduction Diagram
  5. 5. Traditional models for product development Product Development “Waterfall” Model
  6. 6. 9 Sins of the new Product Introduction Model 1. Assuming “I know what the customer wants”. 2. The “I know what features to build” Flaw. 3. Focus on launch date. 4. Emphasis on Execution instead of Hypotheses, Testing, Learning and Iteration. 5. Traditional business plans presume no trial and no errors. 6. Confusing traditional job titles with what a startup needs to accomplish. 7. Sales and Marketing execute to a plan. 8. Presumption of success leads to premature scaling. 9. Management by crisis leads to a death spiral. Source: The Startup Owner’s Manual
  7. 7. 1. Assuming “I know what the customer wants” ▪ One Day 1: Faith-based initiative based on guesses. oNo customers oGuess about the customer, problem and business model oGo design a product and start spending money to build it to race to “first customer ship” all before talking to a single customer ▪ To succeed, founders need to: oTurn hypotheses or guesses into facts as soon as possible oGet out of the building, ask customers if the hypotheses are correct oQuickly change hypotheses into fact Source: The Startup Owner’s Manual
  8. 8. 2. The “I know what features to build” Flaw ▪ Founders presume they know their customers and assume they know the features customers need. ▪ Proceed with waterfall development process for a year or two without interruption and without customer contact. ▪ Progress is measured by lines of code written. ▪ Fixing the inevitable product mistakes is costly and time-consuming. Source: The Startup Owner’s Manual
  9. 9. 3. Focus on launch date ▪ Traditional product introduction model focuses engineering, sales and marketing on the inmovable launch date. ▪ Neither management nor investors tolerate “wrong turns” that result in delays. ▪ Test cycles alpha, beta and release but no time to improve the product. ▪ Product launch and first customer ship dates in mind. ▪ But the company has to understand WHO it’s selling to and WHY they’ll buy. Source: The Startup Owner’s Manual
  10. 10. 4. Emphasis on Execution instead of Hypotheses, Testing, Learning and Iteration ▪ Startup cultures emphasize “get it done and get it done fast”. ▪ But Startups should not focus on the execution of a business plan. ▪ Startups need to operate in a “search” mode and they test and prove everyone of their initial hypotheses. ▪ In practice, startups begin with a set of initial hypotheses (guesses) that might be wrong. ▪ The ability to learn from missteps distinguishes a successful startup. Source: The Startup Owner’s Manual
  11. 11. 5. Traditional business plans presume no trial and no errors ▪ Traditional product development model: oprovides boards and founders an unambiguous path with clearly defined milestones. oEngineers know what alpha test, beta test and first customer ship mean. oIf the product fails to work, everyone stops to fix it. oFinancial progress is tracked using metrics like income statement, balance sheet and cash flow (even if there is no revenue to measure). ▪ Should ask specific questions about results of the tests and experiment to validate all components of the business model. Source: The Startup Owner’s Manual
  12. 12. 6. Confusing traditional job titles with what a startup needs to accomplish ▪ Most startups have borrowed job titles from established companies. ▪ But target customers, product specs and product presentations may change daily. ▪ Early-stage startup executives need different skills from traditional ones. ▪ Customer discovery: people comfortable with change, chaos, risk, unstable situations and learning from failure and can work without a roadmap. Source: The Startup Owner’s Manual
  13. 13. 7. Sales and Marketing execute to a plan ▪ Hiring VPs and execs with wrong skills leads to startup trouble as high- powered sales and marketing people arrive on the payroll to execute the plan. ▪ For majority of startups, measuring progress against a product launch or revenue plan is false progress because of absence of customer feedback. ▪ Search for an understanding of customers and their problems and replace assumptions with facts. Source: The Startup Owner’s Manual
  14. 14. 8. Presumption of success leads to premature scaling ▪ Business plan, revenue forecast and product introduction model gives little room for error, learning, iteration or customer feedback. ▪ Stop and slow down hiring until you understand customers/Pause to process customer feedback. ▪ Hiring and spending should accelerate after sales and marketing have become predictable, repeatable and scalable processes. Source: The Startup Owner’s Manual
  15. 15. 9. Management by crisis leads to a death spiral ▪ Sales start to miss its numbers and the board becomes concerned. ▪ Board meetings become tense. ▪ Sales VP is fired and a new one is hired. ▪ A new sales plan buys the new sales VP a few more months. ▪ The problem is that no business plan survives first contact with customers. ▪ Failure is an integral part of the search for a business model. Source: The Startup Owner’s Manual
  16. 16. Customer Development Process Source: The Startup Owner’s Manual
  17. 17. Customer development Source: The Startup Owner’s Manual ▪ Customer discovery: oCaptures the founder’s vision and turns into a series of business model hypotheses. oDevelops a plan to test customer reactions to those hypotheses and turn them into facts. ▪ Customer validation tests whether the resulting business model is repeatable and scalable. If not return to customer discovery. ▪ Customer creation is the start of execution. It builds end—user demand and drives it into the sales channel to scale the business. ▪ Company building transitions the organization from a startup to a company focused on executing a validated model.
  18. 18. Customer Discovery (1/2) Source: The Startup Owner’s Manual ▪ Get out of the building and into conversations with your customers to test customer reaction to each hypothesis, gain insights from their feedback and adjust the business model. ▪ Learn in depth customers problems, product features they believe will solve those problems and the processes for recommending, approving and purchasing products -> useful to build a successful product, highlight unique differences and propose reasons why customers should buy it. ▪ In a startup, the founders define the product vision and then use customer discovery to find customers and a market for that vision.
  19. 19. Customer Discovery (2/2) Source: The Startup Owner’s Manual ▪ Two outside-the building phases: ▪ 1. Test customer perception of the problem and the customer’s needs to solve it. ▪ 2. Shows the customer the product for the first time, assuring the product (Minimum Viable Product) at this stage solves the problem or fills the needs to persuade customers to buy. ▪ When customers confirms the importance of both the problem and the solution, customer discovery is complete. ▪ Pivots may happen. Failure will happen. It is normal in the startup process.
  20. 20. Minimum Viable Product (MVP) ▪ Early version of a new product that allows a team to collect the maximum amount of validated learning about customers. ▪ You decide what’s Minimum, the customers decides if it’s Viable. ▪ Many types of MVPs: o Fast cycle sketch tests: a physical simulation of an experience, often created with ordinary objects such as paper, cardboard, etc o Front door tests: presenting a minimal “pitch” of the Customer Benefit where the Customer is invited to indicate interest, e.g. a simple online landing page. o Fake-O backend tests: techniques where real people or other manual workarounds are used to mimic eventual backend or automated systems. Often combined with “front-door” test.
  21. 21. Customer Validation Source: The Startup Owner’s Manual ▪ Customer validation proves that the business tested and iterated in customer discovery has a repeatable, scalable business model that can deliver the volume of customers required to build a profitable company. ▪ The company tests its ability to scale (i.e. product, customer acquisition, pricing, channel activities, …) against a large number of customers with another round of tests, larger in scale and more rigorous and quantitative. ▪ Develops a sales roadmap for the sales and marketing team. ▪ Validation is measured by “test sales” that get customers to hand over their money.
  22. 22. Customer Discovery & Customer Validation Source: The Startup Owner’s Manual ▪ Refine, corroborate and test a startup’s business model: oVerify the product’s core features oVerify the market’s existence oLocate customers oTest the product’s perceived value and demand oIdentify the economic buyer oEstablish pricing and channel strategies oCheck out the proposed sales cycle and process. ▪ Adequate sized group of customers + repeatable sales process that yields to profitable business model -> scaling up (Customer creation). ▪ Limit the amount of money a startup spends.
  23. 23. Customer Creation Source: The Startup Owner’s Manual ▪ Builds on the company’s initial sales success. ▪ Spends sums to scale by creating end-user demand and driving it into the sales channel. ▪ Varies by startup types: oEnter existing markets well-defined by their competitors. oCreate new markets where no product or company exists. oRe-segment an existing market as low-cost entrant by creating a niche. ▪ Each market-type strategy demands different customer creation activities and costs.
  24. 24. Company-building Source: The Startup Owner’s Manual ▪ The startup finds a scalable, repeatable business model -> now a company! ▪ Refocus the team’s energy away from “search” mode to focus on execution. ▪ Structured departments: sales, marketing, business development, VPs, … ▪ The passionate visionary entrepreneur is no longer the right person to lead the now-successful company…
  25. 25. Customer development manifesto Source: The Startup Owner’s Manual ▪ The startup finds a scalable, repeatable business model -> now a company! ▪ Refocus the team’s energy away from “search” mode to focus on execution. ▪ Structured departments: sales, marketing, business development, VPs, … ▪ The passionate visionary entrepreneur is no longer the right person to lead the now-successful company…
  26. 26. Rule#1. There no facts inside your building, so get outside Source: The Startup Owner’s Manual ▪ On Day 1, the startup is a faith-based entreprise built on its founder’s vision and a notable absence of facts. ▪ Founder’s job is to translate this vision and hypotheses into facts. ▪ Facts live outside the building, where future customers live and work so that’s where you need to go. ▪ Hard but fundamental -> separates winners from losers. ▪ To be performed by founder (not by employees or consultants).
  27. 27. Rule#2. Pair Customer Development with Agile Development Source: The Startup Owner’s Manual ▪ Customer development is useless unless the product development organization can iterate the product with speed and agility. ▪ Use agile methodology to continually take customer input and deliver a product that iterates around a MVP or a minimum feature set. ▪ Before the company starts, the founders need to reach a commitment to the customer/agile development partnership.
  28. 28. Rule#3. Failure is an integral part of the search Source: The Startup Owner’s Manual ▪ Failures in an existing company are an exception. ▪ Startups go from failure to failure. ▪ In a startup you are searching, not executing. ▪ You try experiments – lots of wrong turns. ▪ Failure are not truly failures, but an integral part of the startup learning process. ▪ When something does not work, successful founders orient themselves to new facts -> frequent, agile iteration followed by testing the iteration that often leads to another iteration or pivot, which leads to more testing, etc.
  29. 29. Rule#4. Make continuos iterations and pivots Source: The Startup Owner’s Manual ▪ A pivot is a substantive change in one or more than the nine boxes of the business model canvas. ▪ Pivots are driven by the learnings from a continuous stream of “pass/fail” tests you run through discovery and validation. ▪ The best startup founders don’t hesitate to make the change. They admit when hypotheses are wrong and adapt.
  30. 30. Rule#5. Use business canvas (instead of business plan) Source: The Startup Owner’s Manual ▪ There is only one reason for a business plan: some investor coming from business school does not know any better and wants to see one. ▪ But once it has delivered financing, the business plan is useless. ▪ Business plan is a collection of unproven assumptions. ▪ The difference between a static business plan and a dynamic business model could be the difference between flameout and success.
  31. 31. Business model canvas
  32. 32. Business model canvas ▪ WHAT ? o Value proposition: which the company offers (product/service, benefits) ▪ HOW ? o Key partners: participate in the business and their motivations for doing so o Key activities: necessary to implement the business model o Key resources: needed to make the business model possible ▪ WHO ? o Customer relationships: to create demand o Customer segments: users and payers o Channels: to reach customers and offer them the value proposition ▪ HOW MUCH ? o Cost structure: resulting from the business model o Revenue streams: generated by the value proposition(s) Source: Alexander Osterwalder: Business Model Generation
  33. 33. Rule#6. Design experiments and Test to validate hypotheses Source: The Startup Owner’s Manual ▪ How do you test ? And what do you want to learn from these tests? ▪ Ask yourself: oWhat insight do I need to move forward? oWhat is the simple test I can run to get it. oHow do I design and experiment to run this simple test? ▪ Examples: mock-up a web page or create a demo/prototype to elicit valuable learning.
  34. 34. Rule#7. Agree on market type. It changes everything Source: The Startup Owner’s Manual ▪ Product/market relationships: oBring a new product into an existing market oBring a new product into a new market oBring a new product into an existing market and try to: • Re-segment that market as a low-cost entrant • Re-segment that market as a niche entrant • Clone a business model that is successful in another company ▪ Majority of startups are not pursuing known markets and don’t really know what their customers will be. ▪ Market types influences everything a company does. Strategy and tactics that work for one market type seldom work for another.
  35. 35. Rule#8. Startup metrics differ from those in existing companies Source: The Startup Owner’s Manual ▪ Startup metrics should focus on tracking the startup’s progress converting guesses and hypotheses into facts rather than measuring execution of a static plan. oHave the customer problem and product features ben validated? oDoes the minimum feature set resonate with customers? oWho in fact is the customer? Have the initial customer-related hypotheses (value proposition, customer segments, channels) been validated through face-to-face interaction? oAverage order size, customer lifetime value, average time to first order, rate of sales pipeline growth, revenue per sales person, … ▪ Also: cash burn rate, number of months’ worth of cash left, short-term hiring plans, when reaching the break-even,…
  36. 36. Rule#9. Fast decision making. Cycle time, speed and tempo Source: The Startup Owner’s Manual ▪ Pivoting but … speed matters inside the company. ▪ Most startup decisions are made in the face of uncertainty. ▪ Adopt plans with an acceptable degree of risk. ▪ Make decisions quickly based on facts, not no faith. ▪ Startups decisions are reversible or irreversible: oReversible: Add or drop a product oIrreversible: fire an employee, launch a product, … ▪ Learning to make decisions quickly is just part of the equation. ▪ Speed and tempo (agile) are integral parts of startup DNA.
  37. 37. Rule#10. It is all about passion Source: The Startup Owner’s Manual ▪ Startup people think different. ▪ It is not 9 to 5. It is 24/7.
  38. 38. Rule#11. Startup job titles are very different from a large company’s Source: The Startup Owner’s Manual ▪ Startups demand execs who are comfortable with uncertainty, change and chaos: oOpen to learning and discovery – highly curious, inquisitive and creative oEager to search for a repeatable and scalable business model oAgile enough to deal with daily change and operating “without a map” oReadily able to wear multiple hats, often on the same day oComfortable celebrating failure when it leads to learning and iteration ▪ Customer development team: Company’s founder then sales closer
  39. 39. Rule#12. Preserve all cash until needed, then spend Source: The Startup Owner’s Manual ▪ Preserve cash: when money is tight, it is crucial to minimize waste. Do not hire sales and marketing staff until the founders turn hypotheses into facts and discover a viable product/market fit. ▪ While searching: Preserve cash while searching for the repeatable and scalable business model. ▪ Repeatable: Search for a pattern that can be replicated. ▪ Scalable: Does the addition of one more salesperson or more marketing dollars bring in more gross profit? ▪ Spend like there’s no tomorrow: when management and board agree that they’ve found a repeatable and scalable sales model, then invest the dollars to create end-user demand and drive customers into sales channel.
  40. 40. Rule#13. Communicate and share learning Source: The Startup Owner’s Manual ▪ Share everything that is learnt outside the building with employees, co- founders and even investors. ▪ Weekly company meetings to keep employees informed and board meetings to let investors understand the progress made in the search for the business model.
  41. 41. Rule#14. Customer development success begins with buy-in Source: The Startup Owner’s Manual ▪ Everyone on the team – from investor to engineers, marketeers and founders – need to understand and agree the Customer Development process. ▪ Customer development is a fluid, nonlinear search for a business model that can sometimes last for years.
  42. 42. Pitch Deck ▪ A pitch deck is a 10-20 slide presentation designed to give a short summary of your company, your business plan and your startup vision. ▪ It serves very different purposes, from trying to get a meeting with a new investor, to presenting in front of a stage, and each one of them should follow a different structure. ▪ A demo day presentation should be very visual and contain very little text. It is going to be seen from by a wide audience (projector) and you will do all the talking. ▪ A pitch presentation that you are planning to email should be completely self-explanatory (and it is going to be seen on a laptop monitor).
  43. 43. Structure 1. Cover 2. Problem 3. Solution 4. Market (with TAM (Total Adressable Market), SAM (Serviceable Available Market), SOM (Serviceable Obtainable Market ) 5. Product 6. Business model (key point) 7. Metrics up to date 8. Strategy for growth 9. Main competitors 10. Difference/Competitive advantages 11. Team 12. Needs for investment 13. Thanks and contact details
  44. 44. TAM (Total Adressable Market) ▪ Total size of the market = how much turnover our business opportunity represents. ▪ Very interesting for investors because it gives an idea of the financial possibilities of the project and its possibilities to scale. ▪ To get a value, we can sum up the turnover of our main competitors at global level or look at existing studies. Source: https://thepowermba.com/2018/12/11/como-calcular-el-tamano-de-mercado-tam-sam-som/
  45. 45. SAM (Serviceable Available Market) ▪ Represents the available market or the market volume that we are able to serve with the definition of our current business model and with the sales channels we have developed for the launch of our product and / or service. ▪ When we start our first sales, we have to size our capacity very well and figure out if we can reach the market we want to cover. ▪ This calculation also indicates our growth potential by offering the services and products that we have defined. ▪ The calculation of the SAM will be done taking as reference the maximum number of units that our current business model is able to sell in a year. It is advisable to take our competitors as an example. Source: https://thepowermba.com/2018/12/11/como-calcular-el-tamano-de-mercado-tam-sam-som/
  46. 46. SOM (Serviceable Obtainable Market) ▪ Serves to assess the potential in the short / medium term that we can obtain with the resources that we are going to invest, that is, we must take into account not only the size of the current market but the percentage of the market that we can capture with our strategy of recruitment and resources. ▪ The SOM will offer us an estimate of who will be the buyers of our product and / or service. A very important fact when validating our business idea. Source: https://thepowermba.com/2018/12/11/como-calcular-el-tamano-de-mercado-tam-sam-som/
  47. 47. Top-Down ▪ Makes the investment decisions based on the most global or international variables to gradually go down progressively until reaching the most specific. ▪ The process to follow would be the following: oAnalyze the situation of the international economic cycle oAnalyze national economies oAnalyze the sectors to know which will grow more than the economy as a whole oAnalyze the aspects of each company taking into account their competitive situation. ▪ This approach is intended for the analysis of large macroeconomic figures, such as potential client trends, demographic data, GDP evolution, trade balance, raw material prices, surveys, industrial activity, energy consumption, etc. From these data, we try to guess what behaviors different markets can register. Source: https://thepowermba.com/2018/12/11/como-calcular-el-tamano-de-mercado-tam-sam-som/
  48. 48. Bottom-up ▪ Is the reverse process. ▪ Start with the details and the smallest parts trying to solve the smaller problems that together are giving solutions to other problems. In this case, companies are not analyzed, but values, investment opportunities, regardless of economic prospects or sectors as a whole. ▪ Three basic elements are involved for decision-making: business, valuation and risk (business or market). ▪ To carry out their calculation, the analysts study the concrete reality of the companies that are under their monitoring with: financial statements, investment plans of new markets, annual reports, financial restructuring plans, etc. ▪ Based on the detailed knowledge of the companies and comparing them with their competitors, we try to guess the behavior that can be expected from the price of their shares in the medium and short term. Source: https://thepowermba.com/2018/12/11/como-calcular-el-tamano-de-mercado-tam-sam-som/
  49. 49. Build up a powerful team (1/2) Team “Solution” (inside the building) – coding, testing, versioning, etc Source: yoemprendo – José Antonio de Miguel Team “Problem” (outside the building) – interviews, customers, Ux, etc
  50. 50. Build up a powerful team (2/2) 2 or 3 persons Easier communication You build less, you spend less Burn rate under control Source: yoemprendo – José Antonio de Miguel Development Design Marketing
  51. 51. Some links https://smallbusiness.chron.com/difference-between-seed- funding-earlystage-funding-33038.html https://fundingsage.com/startup-funding-rounds-and-the-funding- life-cycle/growth-stage/ https://slidebean.com/blog/startups-pitch-deck-examples Source: yoemprendo – José Antonio de Miguel
  52. 52. Some reading …
  53. 53. Next steps and contact ▪ A handbook is coming with the steps to follow ! ▪ Tonny Velin ▪ Email: tvelin@answare-tech.com ▪ Mobile phone: +34 661 727 951

×