Business model refinement and

introduction of external funding

At the Durban #Agrihack session on November 29th 2015

Presentation by John Kieti

twitter: @JohnKieti

A startup is a temporary organization

formed to search for a repeatable and

scalable business model

~ Steve Blank

A startup is a human institution designed

to deliver a new product or service under

conditions of extreme uncertainty

~ Eric Ries

A business model describes the rationale of

how an organization creates, delivers, and

captures value ~ Osterwalder and Pigneur

Business Model Canvas

Efficiency Value

Adjustments on BM Canvas for Lean Canvas

Lean Canvas Changes on BM Canvas

Source: Ash Maurya

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founder

Source: Ash Maurya

Useful Reading material from Ash Maurya

practicetrumpstheory.com/2011/08/customer-development-getting-started

Problem

interviews

Solution

interviews

MVP

interviews

GET OUT OF THE

BUILDING!

Lean Methodology for innovation design

The Learning Cycle

CustomersSource: Ash Maurya

Product /

Market

Fit

Problem/

Solution

Fit (MVP)

Scale

Time - Months

$$$ Value

Best time for savvy early

stage investor to onboard

Best time for Startup

to onboard investor

Startups & External Capital

External vs Other Capital

Best form of funding is

revenue from customers !!

Best form of funding is revenue

from startup’s customers !!

Rapid scaling may call for external

capital

Bootstrapping may be from savings

and side gigs

External Capital

Prizes

Grants

Debt

Equity

Instruments

Development Organizations

Corporates (for profit)

Government

Individuals (Angels)

Foundations

Sources

External Capital

Prizes

Grants

Debt

Equity

Instruments

Development Organizations

Government

Individuals

Foundations

Sources

Corporates (for profit)

External Capital

Prizes

Grants

Debt

Equity

Instruments

Development Organizations

Corporates

Government

Individuals

Foundations

Sources

External Capital

Prizes

Grants

Debt

Equity

Instruments

Development Organizations

Corporates (for profits)

Government

Individuals (Angels)

Foundations

Sources

External Capital

Prizes

Grants

Debt

Equity

Instruments

Sources

Development Organizations

Corporates (for profits)

Government

Individuals (angels)

Foundations

External Capital

Prizes

Grants

Debt

Equity

Instruments

Development Organizations

Corporates (for profits)

Government

Individuals (Angels)

Foundations

Sources

External Capital

Prizes

Grants

Debt

Equity

InstrumentsSocial

Returns

Some investment instruments

may demand investor returns

in form of revenue share or

preferential treatment eg. with

dividends, voting rights.

Gifts

Economic

Returns

Philanthropy

Investment

Investors

Source: Ash Maurya

Consider investors as growth

partners. They should bring with

them new business insights, social

capital, and social validation - over

and above financial capital.

Coaches, mentors and advisors

bring and independent, neutral

view of your business model and

its priority areas

Business

Advisor

Source: Ash Maurya

fi.co/madlibs

Our team, (A - startup name)

is developing (B - defined offering)

to help (C - defined audience)

(D - solve a problem)

with (E - secret sauce).

Opening

Sentence

Elevator

Pitch

In Conclusion,

Learn to shut down your laptop, get out

of the building, and discover what

customers really need

@JohnKieti

Let’s further the conversation: