Startup Toolkit (Born2Global 2014 Lecture)

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

Discussion

Have a comment? Feel free to leave a reply using Discourse. Please try to keep comments civil, or they may have to be edited. ~Danny