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)
Top Related