Agile Marketing Meetup - February 11, 2014Mike Harden - Artis Ventures

Paul Willard - Subtraction Capital

Sponsors: Mindjet + Hotwire

Distribution to Raise VC $

• Never legal/tax advice

• Distribution focus

• Still too broad

• Snowflakes

• Disruptive software

Disclaimers

• 4 Tech Startups

• >$500m raised

• Dozens of advisory raises

• Move to the Dark Side

My Scars

• Problem

• Not “how does this make the world a better place”

• Vitamin pain pill: Addiction?

• 7 deadly sins

• Portfolio test

Series Seed: The Problem

• Market - Run rate

• People - Tech/Product/Distribution

• Multiple - perceived value

• Bonus points: virality, network, ip

• Pilot - the bar

Series Seed - The Rest

• Beta customers• Enterprise - 5• Consumer - fanboys

• Take the product away?

• LTV proxies• Conversion/Activation• Engagement/1st Time UX• Retention

Series A: Product-Market Fit

Active User %

Month since sign-up

Active %

100%

Reverse Engineering

• eCommerce

• Media

• Seat License

• Freemium

• Free for consumers

• Fortune 500 premium

• Sales method

Series A: Revenue Model

• Funnel

• Cohorts

• Addictive design

• Seeding the funnel

• Virality, network, ip

• Scalable growth

• Progress - the bar

ASeries A: Bonus Points

Cumulative Customers

% Customers Paying

• Up and to the right/scalable

• Quality/LTV/ROI - Cohorts

• Revenue• Ramp• Quality

Growth Rounds B+

• Vintage curves

• Very predictive

• Almost anything can be cohorted

• Unitization

• Cohort buildup vs averages

Cumulative LTV/customer

Active User %

Cohorts (the shizzles)