Are you an entrepreneur bidding for investment? What metrics and factors do you need to consider to get ready for investment? We will talk about team, product and market considerations that can help grow your idea into a successful business.
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Lean startups metrics fo investment darabos
1. Lean Startup Metrics
a.k.a How to get your business
investment ready?
Andrea Darabos
Director of LEAN ADVANTAGE
Twitter: @Adarabos www.leanadvantage.co.uk
2. LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
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9 out of 10 new products fail
Steve Blank: Four Steps to Epiphany
6. Acceptance Criteria
Understand 3 key considerations of investors
Ideas how to work on your team
Understand Investment Readiness
Define your metrics linked to your goals
Why experimentation is key to improving metrics
7. How do Investors Decide to Invest?
Jeff Clavier,
Founder & Managing Partner of SofttechVC
9. LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
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The Three Assess Rule:
Big Market
Smart Team
Kick Product
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Team
Team ≠ 1 individual
Strategy/Business Expert, Developer, Designer
Entrepreneurial traits
Relevant industry experience
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Entrepreneurial Traits
Leadership
Perseverance
Confidence
Work ethic
Values
+1
”Canoe-test”
(Can we work together 5-7 years?)
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Team Metrics, Next Steps
Do Personality tests
MBTI, Enneagram,
Gallup Strenghts Finder®
Find gaps in team
Build on strengths
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Team Metrics, Next Steps
Write Your Value Stories and
find shared Values in team
Start building your team’s
shared purpose
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Team Metrics, Next Steps
Hiring?
Go on a ”Canoe-test”
Date before you marry! =)
15. Acceptance Criteria
Understand 3 key considerations of investors
Ideas how to work on your team
Understand Investment Readiness
Define your metrics linked to your goals
Why experimentation is key to improving metrics
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Lean Startup
”A startup is an organisation designed
to search for a repeatable and scalable
business model.”
/Steve Blank
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Business Model Pitching
Source: Uxbooth.com
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All Assumptions!
Are you explicit
about your
team’s
assumptions?
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Investment Readiness
9 Proof of scalable business model
8 Sufficient market opportunity
7 Product Market fit
6 Left side of canvas validation
5 Right side of canvas validation
4 Problem/solution validation
3 Low Fi MVP
2 Canvas with Hypotheses
1 Committed Founding Team See more about IRL in
practice:
John Selep, Sacramento
Angels investment
group
22. Prove 3 Things
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Image: Osterwalder:
Value Proposition Design
Prove that target customers are interested in
solving the problem
Provide evidence that they are
willing to pay for a solution
Provide evidence that you have a
scalable business model
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IRL 1-5: User Assumptions
User centered design
Users and Customers
Fine Grain Roles
Personas = Assumption
Research and Validate: Interview, Observe, …
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Key Metric: TTYFU!
Pre-MVP validation - TTYFU
Post-MVP validation - TTFYU
Iterate your assumptions via fast,
cheap user experiments
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A Video
Nordstrom Innovation Lab
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Actionable Metrics
Metrics should hurt
A change of metric should cause ourselves to do something
Everything we do should be an attempt to move a metric
34. Acceptance Criteria
Understand 3 key considerations of investors
Ideas how to work on your team
Understand Investment Readiness
Define your metrics linked to your goals
Why experimentation is key to improving metrics
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Be careful
Not everything that counts can be counted
Be careful with analysis paralysis
Correlation is NOT causation
Don’t cargo cult metrics!
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Investment Readiness
9 Proof of scalable business model
8 Sufficient market opportunity
7 Product Market fit
6 Left side of canvas validation
5 Right side of canvas validation
4 Problem/solution validation
3 Low Fi MVP
2 Canvas with Hypotheses
1 Committed Founding Team See more about IRL in
practice:
John Selep, Sacramento
Angels investment
group
37. LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
Say hello at: hello@leanadvantage.co.uk
Product-Market Fit?
It is a process not a singular point!
Heuristics such as
at least 20% of users complain if you close the
product/service
Users start ”selling” for you
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Big Market
”Scalability”
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Big Market
A large # of potential users
High growth in # of potential users
Ease of user aquisition
Total Available market/Addressable/Target market
Be ready to pivot in your business model!
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Experimentation is Key to
Success
Set up an Experiment Board
Track #pivots, store learning
Track your speed of learning
TTYFU!
41. Build Metrics into your Tests
We believe that (target users)
Have (type of problem),
That can be solved by (solution).
We will know we are right when
(quantitative metric outcome is x)
and
(qualitative metric outcome is y).
Test Name:
Date: Test ID:
Person responsible:
43. Acceptance Criteria
Understand 3 key considerations of investors
Ideas how to work on your team
Understand Investment Readiness
Define your metrics linked to your goals
Why experimentation is key to improving metrics
44. Thanks! and Read
@ADarabos
Team: Management 3.0 Workout by Jurgen Appelo
Product: Value Proposition Design by Alex Osterwalder
Market: Business Model Innovation by A. O.
Video: What an Angel Investor Recquires – Michael Blakey
Contact: Hello @ leanadvantage.co.uk
Check out our Agile Kaizen Workshop
and our Management 3.0 Workshop!