Miami Idea Center

Sean Ammirati @SeanAmmirati

Partner, Birchmere Ventures

Adjunct Professor, Carnegie Mellon University

February 19, 2015

RAISING VENTURE CAPITAL

Most Startups FAILThe Reason

NO ONE WANTSwhat they’ve built.

IS BECAUSE...

WHY IS THIS IMPORTANT?

Dec 2006

Conviction to build FeedHub

Aug 2007

Private Beta of FeedHub

Launch FeedHub @ Demo 2007

Sept 2007

10 MONTHS “STEALTH MODE”

Dec 2006

Conviction to build FeedHub

Aug 2007

Private Beta of FeedHub

Launch FeedHub @ Demo 2007

Sept 2007

10 MONTHS “STEALTH MODE”

Wasted Time

“Launch early enough to be embarrassed by your product’s first version”

~ Reid Hoffman Co-Founder & Chairman LinkedIn

BUILD

MEASURE

LEARN

IDEAS

CODE DATA

Minimally Viable Product

BUILD

MEASURE

LEARN

IDEAS

CODE DATA

#CMULean

Minimally Viable

Awesome Product

Source: The Entrepreneur's Guide to Customer Development

MAP #1 PPC Campaign Landing Page

MAP #2 Product Drawings

Detailed Spec

MAP #3 Prototype

Functional Output

Features / Benefits description ‘More info’

Call to Action

Face-to-face technology demo

Field Pilot

Market insight Find early adopters

Locate Strategic partners

Seed Funding Paid-beta customers

Revenue Customer Validation Capital Investment

Customer Interaction

Objective

MAP #1 > Concept MAP #2 > P-M Eval MAP #3 > P-M Fit

Past:Research Fellow, CMU Software Industry Center

Director Business Development, Peak Strategy (sold to Morgan Stanley)

CEO & Co-Founder, mSpoke (sold to LinkedIn)

COO, ReadWriteWeb (sold to SAY Media)

Now:Partner, Birchmere Ventures

Adjunct Professor of Entrepreneurship, Carnegie Mellon University

A VC’s Job: Step 1: Find the best companies

Step 2: Invest on rational terms

Step 3: Help them grow

1 Investment: 100 - 150 Pitches

The Relevant Question ...

What makes a GREAT Investment?

The Relevant Question ...

1 Fantastic Team 2 Large Market 3 True Differentiation 4 Market Validation 5 Fit with the Fund

What makes a GREAT Investment?

Hustler +

Hacker (full time)

The Team ...

VC vs

Angel (not necessarily a reflection on the biz)

Large Market ...

Patents

Engaged Community,

Strategic Relationships,

etc ...

True Differentiation ...

Market Validation

MAP #1 PPC Campaign Landing Page

MAP #2 Product Drawings

Detailed Spec

MAP #3 Prototype

Functional Output

Features / Benefits description ‘More info’

Call to Action

Face-to-face technology demo

Field Pilot

Market insight Find early adopters

Locate Strategic partners

Seed Funding Paid-beta customers

Revenue Customer Validation Capital Investment

Customer Interaction

Objective

MAP #1 > Concept MAP #2 > P-M Eval MAP #3 > P-M Fit

Market Validation

MAP #1 PPC Campaign Landing Page

MAP #2 Product Drawings

Detailed Spec

MAP #3 Prototype

Functional Output

Features / Benefits description ‘More info’

Call to Action

Face-to-face technology demo

Field Pilot

Market insight Find early adopters

Locate Strategic partners

Seed Funding Paid-beta customers

Revenue Customer Validation Capital Investment

Customer Interaction

Objective

MAP #1 > Concept MAP #2 > P-M Eval MAP #3 > P-M Fit

$ $$ $$$$Funding

Fit with the Fund ...

Sector

Stage

Partner can add value

1 Fantastic Team 2 Large Market 3 True Differentiation 4 Market Validation 5 Fit with the Fund

What makes a GREAT Investment?

THANK YOU @SEANAMMIRATI

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PHOTO CREDITS

Slide 6: http://www.flickr.com/photos/nasa_goddard/8434074140/

Slide 8: http://www.flickr.com/photos/data70/4748860721/

Slide10: http://www.flickr.com/photos/joi/1431818434/