Startup Toolkit
Danny Crichton
What are Silicon Valley’s secrets?
Knowledge to
build startups
Today’s Agenda
Competitive Landscape/Market Maps
Customer Development
Metrics
Entering a Market
Competitive Landscaping
Competitive Landscape/Market Maps
Customer Development
Metrics
Competitive Landscaping is about finding what companies already exist in a given market
What is a
Market Map?
What is a
Competitive Matrix?
How do I find my competitors?
Example
Alternative Investing Startups
Tools
Media Sites
Tip: Use keywords like “funding” and “competitor” in Google to find similar companies
Crunchbase
Tip: Use tags to find similar competitors
AngelList
Quora
Entering a Market
Customer Development
Competitive Landscape/Market Maps
Customer Development
Metrics
Our goal:
Who wants
our products?
Most Important Decision Ever Made by a Startup:
B2C or B2B
For American Consumers:
Read Mary Meeker’s Internet Trends report
Key Similarities
Mobile first, mobile always
Entertainment is key
Influencers matter a lot
Key Differences
Limited time – driving by car versus subway
Lower density, slower virality
Highly diverse – different consumer groups
Building a Product
for a Consumer
Start with a simple value proposition
Great recent examples: Secret, Medium, Warby Parker
Try it out on customers – get feedback
Open communications
Make customers your ambassadors
For B2B
Incredibly challenging for those outside of US
Things to think about
Size of customer - small business or Fortune 500?
Target customer – founders, marketers, etc.?
Sales cycle – how long to get a sale?
Price – what amount of the wallet?
Entering a Market
Metrics
Competitive Landscape/Market Maps
Customer Development
Metrics
Metrics are the key drivers of a business
Challenge:
What are your
target numbers?
10 Metrics
Growth Rate
But when you start out, it should be 7%
Revenue Run Rate
K-Value
Cohort Analysis
Cost of Acquiring a Customer
Basket Size & Order Velocity
Total Addressable Market
Given all of this,
What do VCs do?
The Same Stuff!
Today’s Agenda
Competitive Landscape/Market Maps
Customer Development
Metrics
Building a Company
Marketing / Branding
Competitive Landscape/Market Maps
Customer Development
Metrics
Goal:
Define the Category
Three Strategies
Reversal
Breakaway
Hostility
Tactics
Design Everywhere
Social Networks
Public Relations
Building a Company
Fundraising
Competitive Landscape/Market Maps
Customer Development
Metrics
Founders & VCs
Remember!
Qualities of the
Easiest Fundraises
Great Metrics
Get introductions
Do a full process
If you have no offers, keep building the business
Raising Money in the US
Must be located in the US, with some exceptions
Already launched with proven traction
Compete with the best Silicon Valley startups
Culture matters a lot
Raising money is not easy for anyone
Building a Company
Hiring
Competitive Landscape/Market Maps
Customer Development
Metrics
More than anything else, hiring will determine your outcome
It’s all about culture
Early On:
Engineers
Later
Engineers
Designers
Sales
Customer Support
Finance and Operations
…….. etc.
Hiring in Silicon Valley is Extremely Hard
Silicon Valley Work Culture
Not so different from Korea
Long hours
Hanging out
Immense Flexibility
Today’s Agenda
Competitive Landscape/Market Maps
Customer Development
Metrics
Conclusion: 3 Key Traits
Learn Everything
Build something people want
Startups are done a day at a time
Startup Toolkit
Danny Crichton