hackathon idea validation
TRANSCRIPT
![Page 1: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/1.jpg)
Validating Hackathon Ideas
Raj RajamaniVP Product Management
![Page 2: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/2.jpg)
MBA from Berkeley’s Haas School of Business VP Products at Cylance (Unicorn > $1B valuation) Product Management positions at
Marketo (went public in 2013) Arcot (acquired by CA Technologies) McAfee (acquired by Intel) Solidcore (acquired by McAfee)
ABOUT ME
![Page 3: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/3.jpg)
1. Why us? Why now?
2. Unmet/underserved need
3. Large and Growing Market
4. Sustainable Competitive Advantage
5. Scalable Business Model
VALIDATING IDEAS
![Page 4: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/4.jpg)
1. Cylance – Enterprise AV2. AppDynamics – Performance Monitoring3. Nutanix - Hyperconvergence4. Box – Collaboration5. Slack – Collaboration
B2B (ENTERPRISE) OR B2C (CONSUMER)1. Uber2. AirBnB3. Fitbit4. Spotify5. Blue Apron
![Page 5: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/5.jpg)
![Page 6: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/6.jpg)
![Page 7: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/7.jpg)
![Page 8: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/8.jpg)
![Page 9: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/9.jpg)
More B2C University startups than B2B?
TRUE OR FALSE
![Page 10: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/10.jpg)
Dropbox founder Houston conceived the Dropbox concept (in 2007) after repeatedly forgetting his USB flash drive while he was a student at MIT. He says that existing services at the time "suffered problems with Internet latency, large files, bugs, or just made me think too much.“
CASE STUDY - DROPBOX
![Page 11: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/11.jpg)
Timing Need Market Size Competitive Advantage Business Model
DROPBOX
![Page 12: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/12.jpg)
Timing – With the introduction of iPhones more users with multiple Internet capable devices Need Market Size Competitive Advantage Business Model
DROPBOX
![Page 13: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/13.jpg)
Timing – With the introduction of iPhones more users with multiple Internet capable devices Need – Convenience is a BFD Market Size Competitive Advantage Business Model
DROPBOX
![Page 14: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/14.jpg)
Timing – With the introduction of iPhones more users with multiple Internet capable devices Need – Convenience is a BFD Market Size - ?? Competitive Advantage Business Model
DROPBOX
![Page 15: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/15.jpg)
INTERNET TRENDS BY MARY MEEKER
![Page 16: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/16.jpg)
![Page 17: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/17.jpg)
Timing – With the introduction of iPhones more users with multiple Internet capable devices Need – Convenience is a BFD Market Size – (150M (NA) + 150M (EU) + 300M (AP) ) X $1/month = $6B Competitive Advantage Business Model
DROPBOX
![Page 18: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/18.jpg)
Timing – With the introduction of iPhones more users with multiple Internet capable devices Need – Convenience is a BFD Market Size – (150M (NA) + 150M (EU) + 300M (AP) ) X $1/month = $6B Competitive Advantage – Design + multi-platform support Business Model
DROPBOX
![Page 19: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/19.jpg)
Following slides are Drew Houston’s (not mine)
BUSINESS MODEL
![Page 20: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/20.jpg)
Public launch (Sep 2008): Time to get real
![Page 21: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/21.jpg)
Public launch (Sep 2008): Time to get real
Our Web 2.0 Marketing Plan• Big launch at TechCrunch50• Buy some AdWords• Hire, um, a PR firm, or a VP of Marketing, or something
![Page 22: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/22.jpg)
EXPERIMENT: PAID SEARCH Hired experienced SEM & affiliate marketing guy ($$) Picked out keywords, made landing pages Hid the free account option for people arriving via paid search, replace with free time-limited trial Went live in early 2009
![Page 23: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/23.jpg)
Cost per acquisition: $233-$388
![Page 24: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/24.jpg)
Cost per acquisition: $233-$388
For a $99 product. Fail.
![Page 25: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/25.jpg)
LIFE TIME VALUE OF A CELL PHONE CUSTOMER
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6Revenues $720.00 $720.00 $720.00 $720.00 $720.00 $720.00
Service Cost (marginal cost) $150.00 $150.00 $150.00 $150.00 $150.00 $150.00Incentive Cost $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Customer Profit $570.00 $570.00 $570.00 $570.00 $570.00 $570.00Probability of being active 65.8% 43.3% 28.5% 18.8% 12.3% 8.1%
Profit expected on average $375.14 $246.90 $162.50 $106.95 $70.39 $46.32Present Value of Expected Profits $341.04 $204.05 $122.09 $73.05 $43.70 $26.15 $810.07
![Page 26: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/26.jpg)
EXPERIMENTS FAILING LEFT AND RIGHT Problem: Most obvious keywords bidded way up
Probably by other venture-backed startups Problem: Long tail had little volume Problem: Hiding free option was shady, confusing, buggy Affiliate program, display ads, etc sucked too Economics totally broken
![Page 27: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/27.jpg)
BUT WE WERE STILL DOING WELL…? Reached 1mm users 7 months after launch Beloved by our community
![Page 28: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/28.jpg)
ADWORDS WASN’T THE PROBLEM Nobody wakes up in the morning wishing they didn’t have to carry a USB drive, email
themselves, etc. Similar things existed, but people weren’t actively looking for what we were making Display ads, landing pages ineffective Search is a way to harvest demand, not create it
![Page 29: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/29.jpg)
TYPICAL DROPBOX USER
Hears about Dropbox from a friend, blog, etc. and tries it
“I didn’t realize I needed this”
“It actually works”
Unexpectedly happy tell friends
![Page 30: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/30.jpg)
NEW STRATEGY: ENCOURAGE WOM, VIRAL
Give users better tools to spread the love Referral program w/ 2-sided incentive permanently increased signups by 60% (!!)
Inspired by PayPal $5 signup bonus Help from Sean Ellis: Surveys, split tests, landing page/signup flow
optimizations, encourage sharing big wins Big investment in analytics
![Page 31: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/31.jpg)
Trailing 30 days (Apr 2010) : users sent
2.8 million direct referral invites
![Page 32: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/32.jpg)
RESULTS September 2008: 100,000 registered users January 2010 (15 mos later): 4,000,000 Mostly from word-of-mouth and viral:
35% of daily signups from referral program 20% from shared folders, other viral features
Sustained 15-20%+ month-over-month growth since launch
![Page 33: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/33.jpg)
Timing – With the introduction of iPhones more users with multiple Internet capable devices Need – Convenience is a BFD Market Size – (150M (NA) + 150M (EU) + 300M (AP) ) X $1/month = $6B Competitive Advantage – Design + multi-platform support Business Model – Direct to consumer, WOM marketing
DROPBOX
![Page 34: Hackathon Idea validation](https://reader035.vdocuments.site/reader035/viewer/2022062523/589be17e1a28aba5108b5b5b/html5/thumbnails/34.jpg)
1. Why us? Why now?
2. Unmet/underserved need
3. Large and Growing Market
4. Sustainable Competitive Advantage
5. Scalable Business Model
VALIDATING IDEAS