matter march 2015
TRANSCRIPT
@brendanbaker | March 2015
Brendan Baker
Today
Brendan Baker
• How it works• How Investors Think• Traction• Pitch Improvement• Avoiding Douchiness• Fundraising is a process
Founder
Brendan Baker
Investor
Building a narrative. How venture investing is changing. AngelList. What it’s like to be employee 2. De-MBAifying myself. How to communicate traction to investors. The 4 companies I’d leave Greylock for.
How reference points have changed my life. How seed fundraising actually works. Strong opinions on
accelerators. The pace of true creators. The magic of rapid prototyping. Data in VC. The most interesting
companies I saw at AngelList. The strategy to building a great early network. Who actually changes
an industry (or company) from within? Why it’s an amazing time to start a tech company. Productive life as a series of rounds in a game. Focus, low ego, and other life experiments. How I got my jobs at AngelList
and Greylock. What’s in a great fundraising pitch? How to find a great job in Silicon Valley. What a
fundraising process looks like.
How Investors Think.
Brendan Baker
Green is good.
Brendan Baker
Problem Solution Product
Roadmap
Market Distribution
Story
RaiseTeam
Model / BusinessTraction
Unit economics
Expect the basics.
Credible < Notable
Brendan Baker
Friendly meeting Funded
Team
Trac
tion
Mar
ket
Prod
uct
Team
Trac
tion
Mar
ket
Prod
uct
+
-
+
-
Excitement > Hesitation
Brendan Baker
Derisking.
Brendan Baker
Risk
Progress
Can they build the product?
Will people use it?
Will people pay for it?
Will people come in mass?
Brendan Baker
Compare vs the market.
Brendan Baker
Finding Matches
20 / 80Don’t MatchMatch
Brendan Baker
Think at 30,000 Feet
Execution
Vision
How the world will be
Brendan Baker
Momentum
Traction is your story of momentum, told through
quantified evidence of market demand for your
product.
Brendan Baker
“quantified evidence”
Brendan Baker
ProfitsRevenues
Active usersEngagement
Customers/clientsRegistered Users
DownloadsPartnerships
Traffic
Yes MaybeCohort progress
Engagement progressProduct velocity
NoPress
Testimonials
* This isn’t a set list. Use evidence that makes sense for you.
Brendan Baker
“They’re super early, but they build and learn fast. They’re worth betting on.”
story
traction
Brendan Baker
“They’re creating a marketplace. That’s hard, but they know it. They knew they had to build the supply side first, and they
nailed it. Now they’re tackling the demand side. Early indications are good, and I think they know how to ramp it up.”
Launched in November 2014:- 25,000 vendors, with avg 25 items (growing 20-30%/month)- 110K uniques (growing 40%/month), with 3% conversion - avg purchase of $45 (growing 5%/month)- $120,000 revenue run rate (increasing 30%/month)- Just signed partnership with Yahoo! And ramping up ads.
story
traction
Traction Techniques
Brendan Baker
• Compress the X axis• Choose your X axis• Bracket your progress (lower their
expectations)• Choose your Y axis• Absolute + growth numbers• B2B or enterprise storytelling (rollout)• Annotate a graph• No testimonials or press mentions!
Pitch Improvement
Brendan Baker
Practice Meetings with ‘Team’, and then 2nd
choice investors
CEO (+1?) Founding Team Real pitches with investors
WHAT
WHO
Pitch Improvement
Brendan Baker
Why?
Why do you care? Why are you doing this? Why are you creating this?Why?
Pitch Improvement
Brendan Baker
Value Proposition
Pitch Improvement
Brendan Baker
Now Statement
Why is now the only time that this could be created?
Why are you the only team who could create this?
Pitch Improvement
Brendan Baker
Storyboarding
http://www.quora.com/Brendan-Baker/Posts/Startups-How-to-Storyboard-your-Pitch-Deck-in-10-Steps
Pitch Improvement
Brendan Baker
Fat and Formatting
Cut fat• Max 3-4 bullet points• Max a few words• Remove ineffective images
Formatting• All titles and body copy in same position, same color• White space• De-pixelate images• Clean up diagrams
Pitch Improvement
Brendan Baker
Excitement and Hesitation Game
Excitement• …• …• …• …
Hesitation• …• …• …• …
Pitching like a non-douche
Brendan Baker
• Capture their attention• Be concise and focused• Use evidence (gamechanger rule)• Show conviction (strong wording, etc)• Make it easy (screenshots, logins, etc)• Build momentum by QBing your team• Reflect offline success on AL
Brendan Baker
1 2 3 4 5 6 7 8 9(Example only. Others may apply)
Fundraising is a Process