startup pitching and mobile app startup

Kobkrit Viriyayudhakorn, Ph.D. kobkrit@gmail.com

http://www.kobkrit.com

Lecture 14 @ kobkrit.com

React-Native Course

Startup PitchingMobile App Startup

Important Links• Source Codes

https://github.com/kobkrit/learn-react-native

• Course Materials http://www.kobkrit.com/category/programming/react-native/

• Score Announcementhttp://bit.ly/its484quizscore

• Facebook Grouphttps://web.facebook.com/groups/ReactNativeThai/

Pitch Deck

Cover Problem Solution Traction

Market Business

Team

Expertise

Vision

Competition

< Demo goes here

Ask

Cover• Nice Teaser Picture

• Having your Company Logo, Company Name.

• Elevator Pitch (High Concept Pitch)

• What? How? Why?

• Youtube: Filckr for Video.

• Contact and Date

Problem• What is the problem?

• How significant it is?

• Who has it? Who is the most pain receivers for this problem?

• How big it is?

Slidebean

Solutions

• How we solve the problem?

• Why it make your customers happy?

• Why we are better and different?

FourSquare

Demo

• Money Shot Moment!

• Show Killer Feature.

• Demo Screen Shots Video.

• Demo will FAILED. Have a Backup.

https://www.youtube.com/watch?v=R0AoOvXxI4o

Traction

• How much money you can make?

• How many active user?

• Testimonial

• Goal: We have valid problem and valid solution.

• Problem-Solution Fit.

Mixpanel

If you has no traction, your problem and solution is just a fantasy — Peter Browne

Facebook

Map me

Man packs

Market Size• Bigger is better!

• Estimate size of your customer

• Top-down approach

• Bottom up approach

• What is their characteristic?

• Estimate your revenue?

AirbnbTop-down approach

Square

Kibin

Top-Down approach• Some research institute said Logistic market is

about 100billion USD.

• 10% of that deliveries item via motorcycle.

• We aimed to get 20% of that the total market size.

• Woot! Our business is 100billion x 10% x 20% = 2billion!!

Bottom-Up approach• More reasonable.

• Right now, Our transaction size is 100USD

• We have 100,000 customer in Thailand

• Our customer purchases 2 time a year.

• Market Size is 100USD x 100K x 2 = 20mil USD

• Our market growing at 200% per year!

Business Model• How do you make money?

• Unit economic

• Customer Acquisition Cost (CAC) < Customer Lifetime Value (CLV)

• Top 1-3 source of revenue.

• Revenue Models

• Ecommerce? Subscription? Adventising? Affilate?

Four Square

Youtube

Linked in

Expertise

• What is your unfair advantage?

• Proprietary Technology

• Patent

• Big Makes Lead

• Experienced Team

Square

Competition• List all of your

competitors.

• Show how you’re better or different.

• Find the most 2 values of your customers care and you are best on it.

Vision• What is your future

plan?

• What is your ultimate goal?

• What is your roadmap?

• How can you win customer and win market?

Team• Who are you?

• What make you so interesting?

• Geeks with deep tech knowledge

• Entrepreneurs, who just sold the company

• Sales/Marketing, who bring a lot of customer.

Ask• How much money do

you want?

• What will you do with that?

• New Hires

• Marketing

• Infrastructure

Tourist Eye

Square

Recap

Cover Problem Solution Traction

Market Business

Team

Expertise

Vision

Competition

< Demo goes here

Ask

Normally ~5 minutes

Startup Metric

AARRR Metric• AARRR Metric (from Dave McClure 500 Startup)

• Acquisition

• Activation

• Revenue

• Retention

• Referral

Unit Economics• Getting a new customer, make us richer or

poorer?

• CLTV (Customer Lifetime Value) - Contribution Margin (Profit) created by a customer in their life time.

• CAC (Customer Acquisition Cost) - Cost to make an visitor experience to our service.

• CLTV >> CAC

4 Stages of Startup1. Hypothesis

• Have at lease five customers pay (revenue), Move next.

2. Problem/Solution Fit

• Have at least 40% retention rate, Move next.

3. Product/Market Fit

• Raise Fund now! Scaling up time!

• Positive Unit economics, CLTV >> CAC. Move next.

4. Product/Economy Fit

Hypothesis Stage• Planning your business on your business model

canvas (or lean canvas)

• 9 Important sections in the business.

• Prove each section one-by-one until we got the valid business model.

• Qualitative interview customer for problem and solution.

General Development Process

First 6 months• Development of 3-D world graphics

• Make plug-in to connect with 15 existing chat apps.

• ICQ

• MSN

• …

• Invest time, staff, effort and a lot of money

• Yahoo Messenger

• AOL

0 customers• Customer said: I don’t want to use imvu to chat with my

friends, because my friend don’t use imvu. I chat with my friends with existing chat app.

• Another Customer said: We want to find a new friend via imvu. Not want to talking with the old one.

• Founder of IMVU said: Why we invest 6 month to make plugin to 15 existing chat app!?

• This worth nothing. Giving everybody in company for 6 months vacation is better!

How can we test the market earlier without invest a lot of efforts in making product?

We don’t want to build a product that nobody

wants.

Lean Startup Methodology

Testing Problem

Making MVP• Learn insight from the previous product interview.

• Start making an demo by making the MVP (Minimum viable product)

• Simple web/app that can solve a problem for customer

• Make it as fast as possible.

2 hours investment

Testing Solution

What next?Make + Release your product.

Measure by AARRR Learn / Pivot

Loop

Problem/Solution Fit

• Requirement

• Customer have strong demand to pay for your product.

• At least 5 paying customers.

• Your solution can solve your customer’s problem.

Product/Market Fit• Sean Ellis Test: At least 40% people feel disappointed

when you said they could no longer use the product.

• AARRR: At least 40% Retention Rate

• Depend on industry

• Social Network, at least 60%

• E-commerce, at least 20%

• Raise fund now! Time to scale.

Growth Hacking Now!Investors want to see at least 20%

growth month-over-monthat this point.

Product/Economy Fit• Be able to achieve attractive economics at scale.

• CLTV >> CAC

Failed to Product/Economic Fit

https://hackernoon.com/why-startups-fail-after-product-market-fit-f8c558e4f1f8#.wnsjo1y8r

Startup Funding• Pre-Startup / Early Stage - Hypothesis

• Family & Friends

• Seed Round - Problem/Solution Fit

• Incubators, Angle Investors

• Series A, B,… - Product/Marketing Fit

• VC, At least 1 million USD

• Exit - Product/Economy Fit

• IPO, Sale

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