1. How to Become Fundable?
vs.
How to Get Funding?
Observations from a Silicon Valley Nerd

2. About Apaxys Ventures
USA Russia
Belarus
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3. How Good Is This Opportunity?
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4. 4 Categories of Investor Evaluation:
Intangibles: team, ego, appearance
Traction: scorecard of accomplishments
Execution: the ability to “get shit done”
Concept Viability: can this make money?
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5. 4 Categories of Investor Evaluation:
Intangibles: team, ego, appearance
Traction: scorecard of accomplishments
Execution: the ability to “get shit done”
Concept Viability: can this make money?
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6. What Affects Traction?
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7. What Affects Traction?
Startups have problems in 3 key areas:
•Management: Set Priorities, Define Key Metrics
•Product: Build “Right” Features. Measure, Iterate.
•Marketing: Distribution, Distribution, Distribution.
(Search, Social, Mobile)
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8. Exposure to a Problemneed 3rd Confirm need L Prove concept
P A
demographic or U
A
industry with Gap  unmet R
Identify test users N Get testimonial
C
monetizable T
Define rev model Y Refine value prop H Exchange value
problems & gaps
Founder(s)
Committed
Able
Scope Project Triage Concept
Milestones Scalable need exists
MVTeam ITER We can deliver
MVTimeline FIN. Let’s do v 2.0
MVResources SALES Team built
UX Prep v 2.0
Litmus Test
DEV Ops in place
Gauge Metrics
Runway in place
Prove Team
MKTG
Public Launch!
OPS
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9. Exposure to a Problemneed
demographic or
industry with Gap  unmet Ready to go?
monetizable
Define rev model
problems & gaps
Founder(s)
Committed
Able
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10. Exposure to a Problemneed 3rd Confirm need
demographic or
industry with Gap  unmet
P
A
R
Discover Customers
Identify test users
monetizable T
Define rev model Y Refine value prop
problems & gaps
Founder(s)
Committed
Able
Scope Project
Milestones
MVTeam
MVTimeline
MVResources
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11. Discover Customers
(Steve Blank, SteveBlank.com)
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12. Exposure to a Problemneed 3rd Confirm need L Prove concept
P A
demographic or U
A
industry with Gap  unmet R
Identify test users N Get testimonial
C
monetizable T
Define rev model Y Refine value prop H Exchange value
problems & gaps
Founder(s)
Committed
Able
Scope Project
Milestones
MVTeam ITER
MVTimeline FIN.
MVResources SALES
UX
Litmus Test
DEV
Gauge Metrics
Prove Team
MKTG
OPS
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13. Before “Launch”- Product/Market Fit
(Sean Ellis, Startup-Marketing.com)
Growth
Transition to
Growth
Product/Market Fit

14. Before “Launch” - The Lean Startup
• Talk to Customers; Discover Problems
• Progress ≠ Features (Less = More)
• Fast, Frequent Iteration (+ Feedback Loop)
• Measure Conversion; Compare 2+ Options
• Focus on Product/Market Fit (don’t “launch” before)
• Keep it Simple & Actionable
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15. Before “Launch”- Iterate!
(Eric Ries, StartupLessonsLearned.com)
IDEAS
LEARN BUILD
DATA
CODE
MEASURE

16. Before “Launch” - Metrics
• Acquisition: users come to site from various channels
• Activation: users enjoy 1st visit: "happy” experience
• Retention: users come back, visit site multiple times
• Referral: users like product enough to refer others
• Revenue: users conduct some monetization behavior

17. Before “Launch” - Metrics
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18. Just Give me the GOOD Metrics.
Users, Pages, Clicks, Emails, $$$...?
Q: Which of these is best? How do you know?
• 1,000,000 one-time, unregistered unique visitors
• 500,000 visitors who view 2+ pages / stay 10+ sec
the
good • 200,000 visitors who clicked on a link or button
stuff.
• 20,000 registered users w/ email address
• 2,000 passionate fans who refer 5+ users / mo.
• 1,000 monthly subscribers @ $5/mo
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19. Kill a feature
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20. Kill a feature
• Something Sucks. Find It. KILL It.
• Find the ONE THING that users LOVE.
• How to figure out? TAKE. SHIT. AWAY.
• When they SCREAM, you’ve FOUND it.
• Then Bring it Back… Only Better.
• Tip: KILL a Feature Every Week.

21. Exposure to a Problemneed 3rd Confirm need L Prove concept
P A
demographic or U
A
industry with Gap  unmet R
Identify test users N Get testimonial
C
monetizable T
Define rev model Y Refine value prop H Exchange value
problems & gaps
Founder(s)
Committed
Able
Scope Project Triage Concept
Milestones Scalable need exists
MVTeam ITER We can deliver
MVTimeline FIN. Let’s do v 2.0
MVResources SALES Team built
UX Prep v 2.0
Litmus Test
DEV Ops in place
Gauge Metrics
Runway in place
Prove Team
MKTG
Public Launch!
OPS
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22. What Does Silicon Valley Have that Russia Doesn’t?
• Good food?
• Good weather?
• Good programmers?
• Good businessmen?
• $ for ideas?
• Better access to information?
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23. What Does Silicon Valley Have that Russia Doesn’t?
• Good food?GREAT FOOD BOTH PLACES.
• Good weather?COLD MAKES YOU WORK HARDER!
• Good programmers? PLENTY!
• Good businessmen?SERGEY BRIN AND HOST OF
OTHERS ORIGINATE FROM RUSSIA
• $ for ideas? US GOV’T PROVIDES NO FUNDING.
• Better access to information?PACKETS DON’T TAKE
YEARS TO CROSS THEBORDER.
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24. I Thought Silicon Valley Funded Ideas!
(Kinda true in late 1990’s, but…)
Angels Today? Looking for:
–Validated idea & team
–Fanatical, paying customers.
Ideas are worthless. The value is in execution.
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25. You Need To:
• Stop playing at entrepreneurship and start
some real companies.
• Stop waiting for government grants or money
from investors.
• Start selling to international market.
• Start shooting for billion dollar opportunities.
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26. Russia Needs…
Successful & visible Internet
entrepreneurs.
Role models.
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27. Russia Needs…
You.
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28. Russia Needs…
You.
to be rich, successful, visible, popular,
supportive, and awesome.
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29. So…
Get Started.
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30. 30

31. Thank You.
Renat Khasanshyn
renat.k@apaxys.com
@renatkhasanshyn
Skype: renatk
+1 (650) 395-7002
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