2. Startups are like Subprime Loans
Low Risk, 3‐5 % yield
Medium Risk, 6‐10 % yield
Value: Known!
? Risk – Unknown!
Yield – Unknown!
Value – ???
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3. How Investors Win – Bundling Risk
• One investment with
a 10% chance of a
20x ROI is a gamble
• Ten investments with
a 10% chance of a
20x ROI doubles your
money
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4. How You Win – Get Included!
To be included in the bundle, you need to help investors
quanAfy your risk (low is good!) and yield (high is good!).
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The lean canvas helps you do that! Why? Because…
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5. Investors Unconsciously Think in Lean
Phase Investors Running Lean
by Ash Maurya
Phase 1 Prove you have a Business Problem / SoluPon Fit
Phase 2 Prove you have a Product SoluPon / Market Fit
Phase 3 Prove you can Execute Scale
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6. Lean Canvas to the Lean Pitch
• Prove you have a Business
• Prove you have a Product
• Prove you can Execute
Each proof requires the prior.
Execu:on can be improved if
you have a good product.
Product issues can be solved if
you have a good business.
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7. Prove you have a Business
Needs to be rock solid Slides
• They are buying into you as much as the idea! Intro &
You! • What makes you more likely to succeed? Agenda
Market
Customer • What is your target market? Overview
Segments • How big is it and who parPcipates in it?
Business
Drivers
• What problem are you trying to solve?
Problem • How do you know it’s a problem & how big is Market
it?
Challenges
• How much do they pay for soluPons today?
Revenue Impact by
• If they don’t pay now, why in the future?
Segment
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8. Prove you have a Product
Needs to be highly credible Slides
• What are you selling and for how much? SoluPon
SoluPon • Who are you compePng against? Overview
Pricing
Unique Value • How do you differenPate yourself? Strategy
ProposiPon • What’s the impact on your compePPve posiPon
CompePPve
Assessment
Unfair • Why won’t company X ‐ who is bigger, more
Advantages mature, and beaer funded ‐ simply copy you? MarkePng
Strategy
• How are you going to reach the customer? Sales
Channels • What is the sales and markePng strategy? Strategy
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9. Prove you can Execute
Except for the end-game, this will change! Slides
ExecuPon • How are you going to structure your team? ExecuPon
Plan • How are you going to grow? Plan
Key Dates
• What are your key tasks & milestones? & Metrics
Key Metrics • How should your progress be judged?
Financial
Plan
Cost • How much will it take to fund your acPviPes?
Structure • What are your financial projecPons? Funding
Strategy
What’s in it
• What’s the end‐game: go public or sell out?
for the Q&A &
• How much do you need and what do we get?
investor? Feedback
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10. Closing Thoughts
• Investors are looking for high yield with controllable risk
• For a start‐up, Business > Product > ExecuPon
• The lean canvas helps you think through your pitch
• Three things are missing:
• Their end‐game – whens the payout & how much?
• Your execuAon plan – how do you deliver the goods?
• The value of you – why are you a beaer bet than the next guy?
• You can present your pitch in 15 to 20 slides
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