first principles - lean entrepreneurship course at carnegie mellon
DESCRIPTION
The introductory lecture to my Lean Entrepreneurship course at CMU.TRANSCRIPT
First Principles
!Sean Ammirati
Partner, Birchmere Ventures Adjunct Professor, Carnegie Mellon University
#CMULean
Most Startups FAILThe Reason
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NO ONE WANTSwhat they’ve built.
IS BECAUSE...
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Why is this important?
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Dec 2006
Conviction to build FeedHub
Aug 2007
Private Beta of FeedHub
Sept 2007
Launch FeedHub @ Demo 2007
10 months of “Stealth Mode”
#CMULean
http://www.flickr.com/photos/stuckincustoms/5881027457/
#CMULean
http://www.flickr.com/photos/data70/4748860721/sizes/o/in/photostream/
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
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
“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/
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/
#ifihadglass
Known Problem
Unknown Problem
Unknown Solution
Known Solution
Lean Startup
Agile Development
Waterfall Development
Kanban
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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
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#CMULean
Source: The Entrepreneur's Guide to Customer Development
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~ $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
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Innovation Happens
“Non Software” Example...
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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
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#CMULean
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Questions?
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