STARTUP BUSINESS DEVELOPMENT

A simple framework for successful deals

BUT FIRST, WHAT IS “BD?”Defining the context

• What do we mean here? – “Inorganic” growth

• Generally, partnership deals:

- Distribution deals

- Co-Marketing / PR deals

- API deals

- Platform deals

- Content acquisition deals

STEP ONE: EXPLOREGetting to know you...

• Key Focus: – Build rapport, trust, relationships– Understand current activity and goals

• Tips:– Avoid NDAs if possible– Really seek to understand what they want– Get all the stakeholders involved

• “Tricks:”– Introduce a few diversionary “asks”– Test the limits

Net Net: Trust + understanding = solid foundation

STEP TWO: TERMSExpectations, Obligations, Roles, Requirements

• Key Focus: – “We do this, you do that” – Layman’s terms not legal (but documented)

• Tips:– Set expectations and an achievable bar– Be the “Guardian of the Mutual Win”– Get all material items in there, this round

• “Tricks:”– Ask for the world– Get them rationally and emotionally attached

Net Net: Reasonable, achievable hurdles to build momentum

STEP THREE: LONG FORM DABringing in the attorneys

• Key Focus: – Papering it all up – Protecting from downside risk

• Tips:– Segregate legal to legal, business to business– Cultivate a champion on the other side too– Keep advancing the discussion-- aggressively

• “Tricks:”– Try not to introduce any last-minute bombs – Rapid exchange of redlined T’s and C’s doc

SummaryProtect, but don’t derail the deal

STEP FOUR: IMPLEMENTATIONExecuting the deal

• Key Focus: – Seamless hand off – Post-signing activity

• Tips:– Have proper people involved – Have an official hand-off meeting– Clarify expectations with your team– Keep BD team involved, checking in, facilitating

• “Tricks:”– Send a thank you gift! – Review metrics, KSFs periodically– Look for ways to expand successful deals

SummaryDeal close is just the beginning

MORE TIPS FOR SUCCESSFUL DEALSDave’s Top Ten (Seven) List

7. Be operationally “ready” to do a deal6. Focus on the right targets (& big wins)5. Come from position of strength (hint: product)4. Understand your partner’s pain3. Introduce competition. 2. Know where the fire escapes are1. Celebrate wins publicly

and remember,

Have fun with it!

Question: What would be a company-making deal for you?

CONTACTLet’s talk about your BD strategy

Nathan Beckordnathan@venturearchetypes.com

415-370-5060

www.VentureArchetypes.comwww.facebook.com/VentureArchetypes

twitter: @startupventures

We look forward to working with you.