Presentation delivered on June 27 to new AlphaLab class

1. ... Demo OR Die
Sean Ammirati
@SeanAmmirati
Partner, Birchmere Ventures
Adjunct Professor, Carnegie Mellon University
June 27, 2013
PLANNING FOR SUCCESS

2. 9 120

3. Most Startups FAIL
The Reason

4. NO ONE WANTS
what they’ve built.
IS BECAUSE...

5. WHY IS THIS
IMPORTANT?

6. Dec 2006
Conviction to
build FeedHub
Aug 2007
Private Beta of
FeedHub
Launch FeedHub
@ Demo 2007
Sept 2007
10 MONTHS
“STEALTH MODE”

10. Dec 2006
Conviction to
build FeedHub
Aug 2007
Private Beta of
FeedHub
Launch FeedHub
@ Demo 2007
Sept 2007
10 MONTHS
“STEALTH MODE”
Wasted Time

11. “Launch early enough to be
embarrassed by your
product’s first version”
~ Reid Hoffman
Co-Founder & Chairman
LinkedIn

12. Known
Problem
Known
Solution
Waterfall
Development
Requirements
Design
Implementation
Verification
Maintenance

13. Known
Problem
Unknown
Solution
Agile
Development
Requirements
Design
Implementation
Product Backlog
Sprint Backlog
Released
Code

14. Unknown
Problem
Unknown
Solution
Lean
Startup
Customer
Discovery
Customer
Validation
Product Backlog
Sprint Backlog
Released
Code
Customer
Creation
Company
Building

15. Known Solution
Lean
Startup
Agile
Development
Waterfall
Development
Kanban
Unknown Solution
KnownProblemUnknownProblem

16. 1. Customer
Discovery
A product solves a problem for
an identifiable group of users
2. Customer
Validation
The market is saleable &
large enough that a viable
business might be built
3. Customer
Creation
The business is scalable
through a repeatable sales and
marketing roadmap
4. Company
Building
Company departmental
and operational processes
are created to scale
THE CUSTOMER DEVELOPMENT MODEL

17. BUILD
MEASURE
LEARN
IDEAS
CODEDATA
Minimally
Viable
Product

18. BUILD
MEASURE
LEARN
IDEAS
CODEDATA
Minimally
Viable
Awesome
Product

19. “NON-SOFTWARE”
EXAMPLE
Innovation Happens

20. GOALS FOR
INNOVATION HAPPENS

21. 1. Provide networking events connecting
entrepreneurs & large corporations

22. 2. Encourage entrepreneurs to
focus more on getting customers

23. 3. Create a culture of
“buying local” in Pittsburgh

26. ~ 12 concepts
~ 6 scale
~ 3 - 4 companies
concepts
scale
spin
out
~ 15 “Classic” Seed Investments
All Community Driven Commerce Focused
STUDIO SEED
+
IDEAS ~25 ideas

27. EXAMPLE STUDIO:
LEGAL SIFTER
TURNING LEGAL DOCUMENTS INTO DATA

28. Adapted From : The Entrepreneur's Guide to Customer Development
MAP #1
Table at IH
Landing Page
Features / Benefits
description
‘More info’
Call to Action
Market insight
Find early adopters
Customer
Interaction
Objective
MAP #1 > Concept
Investment $

30. Adapted From : The Entrepreneur's Guide to Customer Development
MAP #1
Table at IH
Landing Page
MAP #2
Product UI
& Spec
Features / Benefits
description
‘More info’
Call to Action
Informational
Interviews
Market insight
Find early adopters
Locate Strategic
partners
Customer Discovery
Customer
Interaction
Objective
MAP #1 > Concept MAP #2 > P-M Eval
Investment $ $$

32. Adapted From : The Entrepreneur's Guide to Customer Development
MAP #1
Table at IH
Landing Page
MAP #2
Product UI
& Spec
MAP #3
Concierge
Test
Features / Benefits
description
‘More info’
Call to Action
Field Pilot
Market insight
Find early adopters
Locate Strategic
partners
Customer Discovery
Customer Validation
Customer
Interaction
Objective
MAP #1 > Concept MAP #2 > P-M Eval MAP #3 > P-M Fit
Investment $ $$ $$$
Informational
Interviews

33. ELLIOTT@LEGALSIFTER.COM

34. APPLICATION
EXERCISE
What is your MAP?
• Minimally Awesome Product
• Customer Interaction
• Objective

36. 2004
2006
2010450+

37. Key
Partnerships
Cost
Structure
Revenue
Streams
Key
Activities
Key
Resources
Value
Proposition
Customer
Relationships
Channels
Customer
Segments
???
???
???
???
???
???
???
???
???
VALIDATE HYPOTHESIS ...

38. Key
Partnerships
Niche
Content
Cost
Structure
Revenue
Streams
Key
Activities
Key
Resources
Value
Proposition
Customer
Relationships
Customer
Segments
Niche
Customers
Channels

39. Key
Partnerships
Cost
Structure
Revenue Free
Streams Paid
Key
Activities
Key
Resources
Value
Proposition
Basic
Usage
Premium
Usage
Customer
Relationships
Customer
Segments
Casual
High
Volume
Channels

40. THANK YOU
@SEANAMMIRATI

41. PHOTO CREDITS
Slide 7: http://www.flickr.com/photos/nasa_goddard/8434074140/
Slide 9: http://www.flickr.com/photos/data70/4748860721/
Slide11: http://www.flickr.com/photos/joi/1431818434/
Slide 35: http://www.flickr.com/photos/yodelanecdotal/3329778720/