Milestones

The Deck

Part 1 – Milestones (proof of

concept)

What is the biggest barrier for an investor to

invest?

Milestones?

• It’s about proof to validate the earlier than

stable revenues or growth

• A milestone should reduce

market/customer, tech or financial risk

significantly

Think Big – but break it down

We are Swedish!!

Understand the different requirements and

consequences

P/S-fit

P/M-fit

MVP

Growth

Verifieringsbidrag

Customer

”Utlysningar”

A-rounds

Big VC’s

Pre-seed

Incubators

Family office

Angels

Almi

Seed

Angels

Small VC’s

Type of milestones?

• Qualitative

– Signed partner

agreement

– Working MVP

– Proven technology

– LOI

– Problem validated

– …

• Quantitative

– 1000 sign-ups

– 1000 active users

– 10 paying customers

– 10% churn

– CAC < LTV

What is not a good milestone

or proof of concept?

• An article in Techcrunch (it can be a user acquisition strategy)

• Winning startup prizes

• Investor interest

• Tweets

• Market analysis made

• Segments defined

• Product plan defined

• Sold to a few customer (not necessarily, it’s about the business model)

• …

How to define milestones?

Areas:

• Market (customer)

• Product

• Financial

• Team

To think about:

• B2C or B2B

• Segment

• Revenue model type

• Dependencies in the

business model

• Phase

• Tempo

Examples

• Proof that you can work together as a team, usually historical evidence

• Proof that you can build something, i.e. working prototype

• Proof that it’s useful to someone – first users and clients

• Proof that you can talk to investors – every financing round, even small ones

• Proof that you can talk to audiences – 100k users or 1M users or 10M users…

• Proof that the initial team is able to attract talent

• Proof that ecosystem agrees with your ideas – bringing respected industryadvisors or partnerships on board

• Proof that there is market – $1M annually

• Proof that you can manage your finances – cash-flow positive operation

• Proof that you can scale – $10M annually

• Proof that the market is big! – $25M annually and beyond

Workshop

• Define your key proofs needed (you think) that when fulfilled CLEARLY have reducedthe market and product risk at this stage

– Is it 10 interested customers, a MVP thatcan…

– Is it 1000 sign-ups and…

– Is it 2 paying customers and an indication thatthere are 10000 ”look a likes”?

• 20 mins

Part 2 - The Deck

The deck/the pitch

• A deck is for investors and show off’s

• A structured way to iterate and get feedback (not a static ”pitch”)

• Connect with the audience

• Be factual

• The primary purpose is to gain interest

The deck - 10 slides

• Oneliner/hook

• Problem

• Solution

• Market (size)/traction

• Business model

• Unfair advantage/tech

• Competition

• Go to market/market

plan

• Team

• Roadmap (and

money)

• Use common tools

Demoday

Oneliner/hook

• A simple way to set your company into

context

• Gain interest

• ”Tinder is how people meet. It's like real

life, but better. ”

• ”Mint is the free, easy way to manage your

money online”

1. Set the problem

2. A crisp, unique solution

Get love (sex) Get rich Get power

3. Demo/show off

4. Market

YOUR market, not ALL market

5. Revenue model

List 1-3 models

6. Unfair advantage

Technology, team, competence, partnership….

7. Competition

Why are you better? (Or different)

8. How do you reach your

customers?

How will you reach your first 100(0) customers?

9. Team

Avoid degrees, what’s important to the startup?

10. Roadmap & financials

• Where have you been

– Progress & proof points (beta sign-ups, LoI,

revenue)

• Where are you going

– Major milestones (First revenue, 100k users,

break-even, next funding round)

• Do it visually clear and simple

Traction beats everything

Perception is everything!

(traction beats everything)

The Demoday

• It’s a show!

• The right answer vs hypothesis

• 5 minutes…. Practice, practice

• The product MUST be shown in some way

• Youtube, slideshare etc

• http://bestpitchdecks.com/ pitchenvy.com

• Google 500startups, Techstars, Y Combinator pitches

• 2-3 st practice opportunities (video recording)