Startup Basics

This document compiles from the teachings of a startup accelerator company in Singapore
that can hopefully help guide us in building a world class company
Concierge MVP
AKA 'fake it until you can make it'
- http://www.slideshare.net/timgasper/concierge-mvp
- Lesson 2: What is a concierge MVP?
Meng do we already have a glossary document including links to helpful resources like this?
If not perhaps I should start one with this entry.
Communicating with Investors
You might get inspiration from this simple template to update investors:
http://updatemyvc.com/
That will really help them to create the line that they will invest in
http://www.bothsidesofthetable.com/2010/11/15/invest-in-lines-not-dots/
Remain optimistic but manage your expectations rationally... When an investor meets you, the probability
that he invest is lower in his mind that in yours... it's his job
http://venturegeneratedcontent.com/2014/01/09/homebrews-1-the-vc-metrics-behind-investing-in-one-ofevery-100-companies-we-meet/
(Short) regular updates to investors, even pre-investment, is a good way to remain in their priorities (yes
investors are humans and can 'forget' about some entrepreneurs/companies if they don't receive
reminders about it while other priorities come to them - Joyful Frogs are competing against Angry Birds for
Angels and Devils' attention).
Only answer questions from investors which make sense for you and your business... otherwise you're
wasting time better used to grow your business (if an investor wants you to answer questions which don't
make sense, he probably does not understand your business so you should not go to bed with him
anyway); that will also avoid disappointment if no deal follow... you just got someone helping you for free
to prioritize

Showing traction
To be investment ready, you need to show 3 things:
- that you have solved a problem worth solving (customer discovery)
- that your solution fits the problem (product development)
- that the market wants your solution (business development)
* It's possible to create something that solves a real problem (Problem-Solution fit) but
which people still don't want to buy (Product-Market fit). Eg trying to sell knives and forks in
China

Authentic communication
Be you and avoid corporate happytalk
http://www.cluetrain.com/

Also see TA
Dont be afraid to look under the hood
Raspberry Pi is one way to experience bareback computing, old-skool style:
http://www.raspberrypi.org/ are available at http://sg.element14.com/
http://www.sketchup.com/intl/en/index.html
http://tryruby.org/
http://www.codecademy.com/
http://en.wikipedia.org/wiki/Emacs
http://en.wikipedia.org/wiki/Liberal_arts
http://en.wikipedia.org/wiki/Getting_Things_Done
Resources supporting Lean Startup methodologies
Lean Startup Machine leanstartupmachine.com
Running Lean - Ash Maurya - practical ways to apply Lean Startup Methodology http://www.runningleanhq.com/
Running Lean
www.runningleanhq.com
We live in an age of unparalleled opportunity for innovation. Were building more products
than ever before, but most of them fail not because we cant complete what we set out to
build, but because we waste time, money, and effort building the wrong product. What we
need is a systematic process ...
http://leancanvas.com
The Lean Canvas approach attempts to reduce the complexity of developing a complete
business proposition to nine boxes, each of which contains a hypothesis verified through a
series of scientific experiments.
Bmfiddle.com
Has Steve, Ash, Tristan, and Alex's canvases.

On Failure
http://iteratingfun.com/post/26780534540/5-lessons-from-greplins-demise
It's fine to discover that your idea doesn't work. In parallel with British inventor Joseph
Swan, US innovation icon Thomas Edison tried 3000 prototypes before he devised a
practical incandescent lamp:
All my work was deductive, and the results I achieved were those of invention, pure and
simple. I would construct a theory and work on its lines until I found it was untenable. Then
it would be discarded at once and another theory evolved ... I speak without exaggeration
when I say that I have constructed 3,000 different theories in connection with the electric
light, each one of them reasonable and apparently likely to be true. Yet only in two cases did
my experiments prove the truth of my theory.
http://1.bp.blogspot.com/iVoZU5r5DS8/TpsjdWS5nII/AAAAAAAABfk/_9rz86GMdEw/s1600/KMBA-Ira+Glass+Quote

OKR - Objectives and Key Results

1) Business Insider's article about Google's Internal Grading System(OKR)
2) How Swipely keep tracks of his growing employees using OKR
3) An video on OKR explanation given by Google Venture's Partner, Rick Klau <= This is good!

The Knowledge Economy

relating to Hugh's notions about the knowledge economy http://nplusonemag.com/deathby-degrees
Death by Degrees
nplusonemag.com
Jean Baudrillard once suggested an important correction to classical Marxism: exchange
value is not, as Marx had it, a distortion of a commoditys underlying use value; use value,
instead, is a fiction created by exchange value. In the same way, systems of accreditation
do not assess merit; merit is...
Design Thinking
A friend recently pointed me towards this documentary that follows a team at IDEO:
http://youtu.be/FSDF0Pqi8cY
ABC News Nightline - The Deep Dive
Profile of innovation company IDEO and its methods in 1999
Disruptive Innovation:
http://en.wikipedia.org/wiki/Disruptive_innovation
Disruptive innovation - Wikipedia, the free encyclopedia
A disruptive innovation is an innovation that helps create a new market and value network,
and eventually goes on to disrupt an existing market and value network (over a few years or
decades), displacing an earlier technology. The term is used in business and technology
literature to describe innova...
Technology Adoption Cycle
New products and services typically go through a common cycle when they come to market:
http://en.wikipedia.org/wiki/Technology_adoption_lifecycle
Technology adoption lifecycle - Wikipedia, the free encyclopedia
en.wikipedia.org
The technology adoption lifecycle is a sociological model developed by Joe M. Bohlen,
George M. Beal and Everett M. Rogers at Iowa State University,[1] building on earlier
research conducted there by Neal C. Gross and Bryce Ryan.[2][3][4] Their original purpose
was to track the purchase patterns of ...
The Why, How and What of communication
http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html
Simon Sinek: How great leaders inspire action | Video on TED.com
TED Talks Simon Sinek has a simple but powerful model for inspirational leadership all
starting with a golden circle and the question "Why?" His examples include Apple, Martin
Luther King, and the Wright brothers ...
Pitch format
http://www.slideshare.net/thomas.frazier

It's similar to YC's pitch format:

30 second pitch > problem > solution > market > business model > traction > why us (secret sauce) > ask

Pitching
This document is copied from http://www.slideshare.net/secret/wTpUSVYi4E98Vl
Whats The Pitch?
A pitch is a roughly 30 second oral presentation designed to promote a product, service or company. Pitch is
a shortened form of sales pitch. Every entrepreneur needs to be a salesperson, to attract investors,
employees, and partners.
The tips and techniques, including both dos and donts, that follow have been gleaned by Bill Warner and
Steve Bayle from evaluating dozens of pitches from entrepreneurs seeking investment.
Your Goal: Get The Meeting
In your 30 seconds you need to take potential investors through four phases:
1.
Attention first you must capture their attention, competing against numerous other distractions
2.
Excitement now that they are paying attention, you need to get them excited about you and
your company
3.
Engagement now that they are excited, enable them to imagine becoming involved with you and
your company
4.
Action the goal of your presentation: get potential investors to spend time with you to learn
about your company, your product, and the investment opportunity. An investment of timemust precede
an investment of money.
Its The Singer And The Song
Keep in mind that the audience is attending to and judging more than just the words you speak. Your tone
of voice and body language convey your excitement and enthusiasm for your company, or lack thereof. Use
volume, rhythm, pauses and gestures for emphasis. Avoid speaking in a monotone. Animation in your facial
expression and body language help communicate your excitement about your company. And if you arent
excited about your company, why should anyone else be?
But 30 Seconds Just Isnt Enough Time!
Big corporations pay millions of dollars to present their pitch in 30 seconds in TV commercials. Chances are
it hasnt cost you that much for your presentation opportunity, but the stakes may be just as high. You are
selling a product yourself and your company and your pitch is your 30- second ad. Its plenty of time, if
you focus only what is unique and exciting, and avoid cramming in too information. That will just detract
from your core message.
They Hold Their Breath When You Start
Your most powerful moment is in the first few seconds. People are drawn to pay attention to a new face. But
they are besieged with reasons to stop paying attention. They want to look at their Palm Pilot or check out
the agenda, or check on their stock portfolio.
Think of it another way. People's attention span plummets exponentially. Your job is to stop that plunge.
Don't Start With Your Name
You're already losing attention, and your name just isn't that interesting. Neither is your company name. Is
this an engaging way to start?
Hi. My name is Wilson Smith, and I am President of Mega Technologies. Mega Technologies was started in
2001 to...."
Which is more interesting:
"Mega Technologies is building software for network management. A recent Gartner Group study shows that
42,000 companies have no network management at all, and 20,000 of these have more than 100
computers.
or
42,000 companies have no network management at all. 20,000 of these have more than 100 computers.
Mega Technology is building....
You Are Sliding Down A Steep Cliff; Get A Platform.
When you start talking, peoples attention is already waning fast. You have to stop that process.
I call this "getting a platform." The platform is a stable place from which to deliver your message, get your
audience to pay attention, get excited, and become engaged - the necessary steps to achieving your goal:
their commitment to learn more about you and your company
Ways To Get A Platform
In no particular order:

1.

The Startling Fact: "Did you know that laptops emit X-rays? Our coating for laptop screens
eliminates this problem". The startling fact can be a good way to get people to listen, but you have to
proceed to a good middle and ending: "Did you know that laptops emit X-rays? They do. Europe is
already developing standards to control this. Our chief technologist developed x- ray proof coatings for
NASA, and we're applying them to laptops. Our coating costs only 3 cents in quantity, and can be added
at time of manufacture." Once we raise the capital to build our coatings plant our high gross margins
will bring us rapidly to profitability.

2.
3.

Tell a Story: "My street was just repaved. Two weeks later, they dug it up to install cable. One arm
doesn't know what the other is doing. MuniSoft is developing software for cities and towns so they can
schedule all kinds of activities in the most efficient way. It can save cash strapped cities as much as
$1million dollars in a single year."

4.
5.

Ask a Question: "How many of you use those flash memory disks? What if your car had a USB port
and could play music from them? That's what we're building...

6.
7.

Build a Case. "Home theatres are now in 30% of homes. Movie ticket sales are down by 20%. And
DVD sales are up by 50%. Theatres need a way to compete. Our projectors deliver image quality ten
times better than the best movie projectors, and 20 times better than home theatre. The Wall Street
Journal calls our system "stunning." Our patent has just been granted. Now we need the funds to turn
the prototype into a product.

8.
9.

Single Word. "Reboot. You've heard it a thousand times. Its the answer when your computer
doesn't work right. At Reboot Inc, we've come up with a way to soft reboot your computer while its
running...."

10.
11.

Build on a Known Fear. "Backup tape? You might as well call it backup prayer. Gartner Group
studies show that 30% of all backup tapes fail when you try to retrieve data from them. Our backup
master uses hard drives, costs only 50% more than tape, and is 30 times more reliable. We're selling it
to OEMs, have two signed up." We now need funding to hire a VP of Sales and build sales force to sign
up the other 2345 OEMs that serve this market.

12.
13.

Contradict Conventional Wisdom. "China is the worlds largest market. Wrong. When you correct
for a rural population that is expected to remain that way for 30 years, India is actually twice as large
today, growing to five times as many ACTUAL consumers in 2020. We have twenty years of experience
in selling consumer products in India, and are building a consulting firm to help American companies tap
this new market."

14.
15.

Make them Laugh, but Make it Relevant. "At kindergarten, they asked my son what I do for
work. He said I complain about being on hold so long. Actually, its true...I've built a business solely
focused on reducing hold times for call centers. We've cut hold times at Comcast by 20%, and Verizon
by 300%. Our systems pay for themselves in 6 months. With that kind of ROI you investment in Hold
Off, Inc. will have a terrific return as well.

The Connection To You

The best pitches convey some connection to you. It can be stated or unstated. But if you are excited and
energized by what you are saying, because it really resonates with who you are, your pitch will be better
received, no matter how well you structure it.
If you can connect what you're doing to your enterprise, it often increases credibility, and makes a better
pitch.
"For 5 years, I was a cop in Boston. I wore a bulletproof vest. But it couldn't save me from the hour long
planning meeting each morning. Now the same meeting takes ten minutes because of the Police Beat
software from my company, Police Force Dynamics. We have 5 people, eight customers. We won the vendor
of the year award in Boston, and now we're expanding into New York and New England.
A Good Pitch Has A Beginning, A Middle And An End.
Any good story has a beginning, a middle, and an end. Sounds obvious, but so many presenters often leave
off the end. They have a decent introduction, then simply try to cram too much into the middle, so they
don't bother with an ending.
The end is what is called in direct marketing a call to action remember your goal, to get potential
investors to invest their time getting to know you, your product and your company.
"Our company, Alpha Consulting, has been in business since 2001. We focus on Fortune 500 companies that
need expertise in their internal operations. Most of these companies focus on solving problems rather than
planning how they should solve them. We'd like to show you our new software and demonstrate the market
size that we see."
The talk above only started with a name...weak...you don't get a platform. The middle wasn't crisp, and just
ran on to a fade-out of "come see us."
"Dial Soap Corporation has 450 people in IT. 447 of them focus on solving problems. Only three work on
planning their future. We wrote IT.Plan to use in our practice, and saved Dial $2million last year. Now we
need funding for growth and marketing to expand our consulting practice with this new tool."
Note here that the middle can actually be very short...you just tell them that you've written some great
software to solve this problem, you will use it in your practice (instead of trying to become a software
company), and that it works, and has saved money for an actual corporation.
Generic Language Is Deadly
Presenters often use lots of generic language like "we improve productivity and efficiency through advanced
information technology." This is generic. Almost anyone could say it.
Don't be general, be specific.
Don't say "we improve productivity and efficiency." Say: "The Boston Police department used to take an hour
each morning scheduling their officers. Now it takes ten minutes using our system. The extra 50 minutes
represents an 11% increase in officer productivity. $120 Billion is spent on local police nationwide, we can
make it go much further."
Jargon Is Deadly...Even For Those That Understand It
Jargon doesn't excite people, even if they are fluent. It is a waste of valuable time, and it tends to cause you
to talk in a monotone. Imaging saying this with some animation:
"Mega Technologies is a specialist in SNMP network management. In addition, our CORBA-Based Quality-ofService Management Framework for Distributed Multimedia Services and Applications, means that our
customers systems have maximum uptime.
What happens if you put this into English:
"You'd think companies have control over their networks. But they don't. 62% of companies with 50 to 100
computers have NO network management at all. We're building the tools they need. Its a 2 billion dollar
market today, and its growing. Our products are in beta test now, and we are looking for our first round."
Illuminate The Problem, Talk About Your Solution
Did it matter what tools you use? Not really. Spend your precious seconds clearly communicating the
problem and your solution dont get bogged down in technical details about your platform or technology.
17% of shopping mall shoppers cant remember where they parked their car in the parking lot at least once
a year and need help to find it. FindIT Corps auto radio beacon eliminates thousands of wasted hours for
shoppers and shopping mall personnel.
Could Your Competitor Just As Well Give Your Pitch?
Too often, presenters present messages that are so generic that their competitor could give their pitch and it
would be just as applicable.
"Mega Technologies provides network management tools that ensure network safety and reliability no matter
where the equipment is installed. Using advanced software, our tools allow network managers to remotely
diagnose and configure user systems."
This pitch has no platform. No beginning, no middle, no end. Nothing specific to Mega Technologies, really.
"On Tuesday, May 14, 1998, eBay went down for 2 days. It was my job to get it back up. I spent 48 hours
with no sleep, and said, never again. I started Mega Technologies to build the tools and technology to keep
the worlds largest sites from ever crashing. eBay uses us, so does CNN. Now we need capital to grow.

The first sentence establishes the platform, and a beginning, establishing a reason for starting Mega
Technologies. The middle is the discussion what was created, and the ending is where it is now, and where
its going.