3. What is the biggest barrier for an investor to
invest?
4. Milestones?
• It’s about proof to validate the earlier than
stable revenues or growth
• A milestone should reduce
market/customer, tech or financial risk
significantly
6. Understand the different requirements and
consequences
P/S-fit
P/M-fit
MVP
Growth
Verifieringsbidrag
Customer
”Utlysningar”
A-rounds
Big VC’s
Pre-seed
Incubators
Family office
Angels
Almi
Seed
Angels
Small VC’s
7. Type of milestones?
• Qualitative
– Signed partner
agreement
– Working MVP
– Proven technology
– LOI
– Problem validated
– …
• Quantitative
– 1000 sign-ups
– 1000 active users
– 10 paying customers
– 10% churn
– CAC < LTV
8. What is not a good milestone
or proof of concept?
• An article in Techcrunch (it can be a user acquisition strategy)
• Winning startup prizes
• Investor interest
• Tweets
• Market analysis made
• Segments defined
• Product plan defined
• Sold to a few customer (not necessarily, it’s about the
business model)
• …
9. How to define milestones?
Areas:
• Market (customer)
• Product
• Financial
• Team
To think about:
• B2C or B2B
• Segment
• Revenue model type
• Dependencies in the
business model
• Phase
• Tempo
10. Examples
• Proof that you can work together as a team, usually historical evidence
• Proof that you can build something, i.e. working prototype
• Proof that it’s useful to someone – first users and clients
• Proof that you can talk to investors – every financing round, even small
ones
• Proof that you can talk to audiences – 100k users or 1M users or 10M
users…
• Proof that the initial team is able to attract talent
• Proof that ecosystem agrees with your ideas – bringing respected industry
advisors or partnerships on board
• Proof that there is market – $1M annually
• Proof that you can manage your finances – cash-flow positive operation
• Proof that you can scale – $10M annually
• Proof that the market is big! – $25M annually and beyond
11. Workshop
• Define your key proofs needed (you think)
that when fulfilled CLEARLY have reduced
the market and product risk at this stage
– Is it 10 interested customers, a MVP that
can…
– Is it 1000 sign-ups and…
– Is it 2 paying customers and an indication that
there are 10000 ”look a likes”?
• 20 mins
13. The deck/the pitch
• A deck is for investors and show off’s
• A structured way to iterate and get
feedback (not a static ”pitch”)
• Connect with the audience
• Be factual
• The primary purpose is to gain interest
14. The deck - 10 slides
• Oneliner/hook
• Problem
• Solution
• Market (size)/traction
• Business model
• Unfair advantage/tech
• Competition
• Go to market/market
plan
• Team
• Roadmap (and
money)
• Use common tools
16. Oneliner/hook
• A simple way to set your company into
context
• Gain interest
• ”Tinder is how people meet. It's like real
life, but better. ”
• ”Mint is the free, easy way to manage your
money online”
26. 8. How do you reach your
customers?
How will you reach your first 100(0) customers?
27. 9. Team
Avoid degrees, what’s important to the startup?
28.
29.
30. 10. Roadmap & financials
• Where have you been
– Progress & proof points (beta sign-ups, LoI,
revenue)
• Where are you going
– Major milestones (First revenue, 100k users,
break-even, next funding round)
• Do it visually clear and simple
37. The Demoday
• It’s a show!
• The right answer vs hypothesis
• 5 minutes…. Practice, practice
• The product MUST be shown in some way
• Youtube, slideshare etc
• http://bestpitchdecks.com/ pitchenvy.com
• Google 500startups, Techstars, Y Combinator pitches
• 2-3 st practice opportunities (video recording)
Notas do Editor
We like business plans that present a lot of information in as few words as possible. The following business plan format, within 15–20 slides, is all that’s needed.
Company purpose
Define the company/business in a single declarative sentence.
Problem
Describe the pain of the customer (or the customer’s customer).
Outline how the customer addresses the issue today.
Solution
Demonstrate your company’s value proposition to make the customer’s life better.
Show where your product physically sits.
Provide use cases.
Why now
Set-up the historical evolution of your category.
Define recent trends that make your solution possible.
Market size
Identify/profile the customer you cater to.
Calculate the TAM (top down), SAM (bottoms up) and SOM.
Competition
List competitors
List competitive advantages
Product
Product line-up (form factor, functionality, features, architecture, intellectual property).
Development roadmap.
Business model
Revenue model
Pricing
Average account size and/or lifetime value
Sales & distribution model
Customer/pipeline list
Team
Founders & Management
Board of Directors/Board of Advisors
Financials
P&L
Balance sheet
Cash flow
Cap table
The deal
See also Elements of Enduring Companies