first principles - lean entrepreneurship course at carnegie mellon

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First Principles Sean Ammirati Partner, Birchmere Ventures Adjunct Professor, Carnegie Mellon University #CMULean

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The introductory lecture to my Lean Entrepreneurship course at CMU.

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Page 1: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

First Principles

!Sean Ammirati

Partner, Birchmere Ventures Adjunct Professor, Carnegie Mellon University

#CMULean

Page 2: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

Most Startups FAILThe Reason

#CMULean

Page 3: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

NO ONE WANTSwhat they’ve built.

IS BECAUSE...

#CMULean

Page 4: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

Why is this important?

#CMULean

Page 5: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

Dec 2006

Conviction to build FeedHub

Aug 2007

Private Beta of FeedHub

Sept 2007

Launch FeedHub @ Demo 2007

10 months of “Stealth Mode”

#CMULean

Page 6: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

http://www.flickr.com/photos/stuckincustoms/5881027457/

Page 7: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

#CMULean

Page 8: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

http://www.flickr.com/photos/data70/4748860721/sizes/o/in/photostream/

Page 9: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

Dec 2006

Conviction to build FeedHub

Aug 2007

Private Beta of FeedHub

Sept 2007

Launch FeedHub @ Demo 2007

10 months of “Stealth Mode” Wasted Time

#CMULean

Page 10: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

About me...

• 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)

• Partner, Birchmere Ventures#CMULean

Page 11: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

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

!Reid Hoffman,

Co-Founder & Chairman LinkedIn

Source: http://www.flickr.com/photos/joi/1431818434/sizes/l/in/photostream/

Page 12: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

I should let you know, we're not done. It's early days and some things could change to the API before we release it. !Timothy Jordan, Google

http://www.engadget.com/2013/04/04/google-glass-developer-presentation-from-sxsw-finally-available/

Page 13: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

#ifihadglass

Page 14: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

Known Problem

Unknown Problem

Unknown Solution

Known Solution

Lean Startup

Agile Development

Waterfall Development

Kanban

#CMULean

Page 15: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

CustomerDiscovery

CustomerValidation

CustomerCreation

CompanyBuilding

A product solves a problem for an identifiable group

of users

The market is saleable and large enough that a viable

business might be built

The business is scalable through a

repeatable sales and marketing roadmap

Company departments

and operational processes are

created to support scale

The Customer Development Model

#CMULean

Page 16: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

#CMULean

Page 17: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

Source: The Entrepreneur's Guide to Customer Development

#CMULean

Page 18: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

~ $35k

~ $100k

~ $200k

concepts

scale

spin out

~$100k - $150k target first investment!!

~ $275k average total investment

All Community Driven Commerce Focused & Shared Overhead

STUDIO SEED

+concepts ~ $1k

#CMULean

Page 19: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

Innovation Happens

“Non Software” Example...

#CMULean

Page 20: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

Goals for Innovation Happens

• Provide networking event connecting entrepreneurs & large corporations

• Encourage entrepreneurs to focus more on getting customers

• Create a culture of “buying local” in Pittsburgh

#CMULean

Page 21: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

#CMULean

Page 22: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

#CMULean

Page 23: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

Questions?

#CMULean

Page 24: First Principles - Lean Entrepreneurship Course at Carnegie Mellon

seanammirati.com !

@SeanAmmirati

#CMULean