Category Archives: Funding

A 10 Step Guide to AngelList

Brendan Baker wrote a really nice post on Quora on “How To Hustle With AngelList in 10 Steps“. He talks about:

  1. Make sure your profile is solid
  2. Leverage markets
  3. Leverage your location
  4. Be visible
  5. Build your team
  6. Get their support
  7. Get them to share your profile
  8. Expand your team
  9. Convert and exploit your new supporters
  10. Reach out to AngelList
Brendan explains that:
“In the last year I’ve seen thousands of startup pitches and coached hundreds of founders while working with the AngelList crew. I’ve also seen how quickly the AngelList platform improves, giving startups new ways to reach investors with every push. This is about using those tools.”
Read the full post, is worth it.
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The Founder Conference 2011 Recap

Having attended The Founder Conference in 2010 with a great lineup of speakers, great venue (Microsoft Campus in Mountain View), and good networking opportunities I was looking forward to this year’s event. Unfortunately not all went well this time around, but there were some positive things. The conference was held on 05/03/11 at the Mountain View Center for Performing Arts.

Here’s a quick recap for those who weren’t there.

Morning Sessions

Guy Kawasaki was the first speaker and focused on his new book, Enchantment. Guy is a really great speaker, but for someone that is supposedly in tune with the startup world I felt his standard powerpoint deck about his book could have been tweaked a bit to better relate to the audience (i.e. startup founders). Using examples like Ford, Apple and other big names work well for a mass audience that his book is trying to reach but how about bringing it closer to home and using some startups as part of the Enchantment story? Guy has delivered this same talk many times, so you can watch it online and judge for yourself.

Second up was Naval Ravikant, talking about The Rise of the Angels. Naval’s presentation was basically a repeat of a previous talk he gave at the Hackers&Founders meetup a few months ago. You can watch that presentation and judge for yourself. 90% of people I met said they had attended the meetup and so there was nothing new this time around, but others that had seen it for the first time enjoyed, especially knowing how AngelList is becoming a successful venue for raising capital.

Then there was a panel discussion with Loic Le Meur and Robert Scoble on “Building Traction with Social Media”, that had a few interesting insights, such as:

  • Think big. According to Scoble, some founders think only about reaching the local or national market and forget to go abroad, world-wide. That’s where European founders suffer, because they tend to create solutions for their specific countries instead of the whole continent or world.
  • The best way to make your idea/product viral is to tell a good story. Make it easy for people to spread the story.
  • The key metric to show investors is “how many people are actually using your product”.
The discussion also touched upon how to get press, how to recover from bad PR, and a few other topics. I expected more action items related to social media in particular based on the topic of the panel, but it was entertaining to listen them share their stories.

Afternoon Sessions

I liked the afternoon presentations better. Phil Libin, CEO of Evernote, had a great presentation where he shared all metrics he uses to track customer acquisition and customer engagement. For example:

  • Evernote has 9M registered users to date
  • 28K new registrations daily
  • 3.2M active users in any given 30 day period
  • Users that sign up for the free account and stay with them for 1 year have a 8% conversion rate (end up paying for the premium account), while users that have been using for 36 months convert at a 23% rate.
  • 38% of their active users come from the US, but Japan is the second highest market with 28% of active users.

I also credit Phil for the best quote of the day, saying:

Phil Libin’s Law: The number of things that will go wrong multiplies over time

That’s what every entrepreneur should have in mind, according to Phil who says you have to multiply Moore’s Law by Murphy’s Law and be prepared for bumps along the road.

Another panel came on, but this time it focused on founder stories of how they launched their companies. The questions were mostly about their experiences with the incubator programs they participated in, the conferences they used to launch, and lessons they learned from their experiences. Participated Jared Hansen, of Breezy, Aviv Grill, of Misomedia, and Olivier Desmoulin, of Supermarmite.

After that, twelve companies had the chance to deliver 1 minute pitches and to be critiqued by Brian Wong, in what was a really funny and engaging discussion. Most pitches sucked, which always makes me wonder why founders don’t come prepared for events like this, but I guess this can be a separate post. Companies pitching were (hyperlinks for those who seem to have a site):

Note: let me know if I missed any company and if there are sites for the ones I didn’t link to.

The next session was an interesting presentation by Tim Young, founder of SocialCast and About.me, talking about his now famous Magic of 5 Slides that ended being picked up by TechCrunch and generated 10,000 emails within 1 hour hitting his inbox, including some angry VCs for him disclosing his ideas on how to build a killer pitch deck. 

A few key points he raised during this presentation are worth repeating:

  • Think about the traditional deck versus telling a story. Tell a story, don’t give a presentation.
  • It’s not a pitch, is a religious conversion. Make people believe in your vision.
  • Don’t confuse idea with product or company. VCs fund companies.
  • Use only 30% to 40% of your alloted time to present your story.
Next up was Tommy McClung, talking about how he started CarWoo as the 2008 recession began hitting car makers and dealerships nationwide. Great story of how you can succeed and the importance of timing.
The final session was a pitch feedback panel with Rebecca Lynn, Jeff Clavier, George Zachary, and Tim Young. Some companies (don’t remember how many) had 4 minutes each to do a pitch (with slides) which were then picked apart, I mean, critiqued by the panel. Although I didn’t jot down their company names they were part of the original group of 12 that had presented earlier in the day. The best of any live pitch session like this, is to hear the feedback of the panel, and learn from the presenter’s mistakes how to better prepare for when is your turn on the spotlight.

Conference evaluation

Comparing to last year’s event, The Founder Conference 2011 was very weak. Some sessions were good but overall I was expecting much higher quality, especially not being the first time of this event or the organizers. Here are a few things that I hope they read and take as constructive feedback:

  1. Venue was horrible. Parking, for instance, was terrible and the staff wasn’t helpful in telling us where to find parking. And there was no Wi-Fi.
  2. No Wi-fi. Come on guys, a startup conference without Wi-Fi? And don’t blame Gooogle.
  3. No food. I’m not talking about lunch, but at least some cookies or something during break is not much to ask.
  4. No questions during sessions. This was perhaps my biggest issue, you listen to great people talk and can’t ask them questions?! Wow.
  5. Panels too weak. I was hoping for more insightful questions asked to the panels. Next time, I suggest opening up for attendees to ask questions so it’s more interactive.
  6. A/V sucked. There were many problems with sound, microphones, and slides. Some testing beforehand is in order.
On a scale from 1 (horrible) to 10 (outstanding) I would give the conference a 6. There were some good speakers and the networking, which is one of the most important aspects of the event, was good (I met several great people). The lesson is to learn from the mistakes and put on a better show next time.

Learning from Failed Product Launches

Remember the Pepsi Edge? Dr. Pepper Berries & Cream? How about Coke C2? They all have one thing in common: complete failures.

Despite market research and more money than we startup founders can ever dream of having, the big guys are also prone to disastrous product launches. A recent HBR article “Why Most Product Launches Fail” sheds some light on why this happens. Here’s what they say:

The Five Causes of Flops

  1. The company can’t support fast growth
  2. The product falls short of claims and gets bashed
  3. The new item exist in “product limbo”
  4. The product defines a new category and requires substantial consumer education – but doesn’t get it
  5. The product is revolutionary, but there’s no market for it

What About Startups?

A product launch is different from a company launch, but especially for web and software startups they are typically one and the same. So although the five elements HBR outlined in their article, startup founders should also lookout for other indications of potential failure in the horizon. In “18 Mistakes that Kill Startups“, Paul Graham covers the basics. If you’re going to read only one article about startup failures, you can’t go wrong with Graham. 

For a VC perspective on startup failures, David Feinleib at Mohr Davidow Ventures has a good list. And ChubbyBrain posted a nice analysis of startup failures post-mortem. Read, learn, avoid death. Good luck!

How to Hack Your Funding Process

Last week Naval Ravikant did a presentation at the Hackers and Founders event about hacking your funding process. There’s a lot that is similar to other presentations from Naval but a few slides talking about what is angel list, possible startup bubble and tips for founders that make the talk worth watching.

You can watch the whole talk at the Hackers&Founders TV website.

 

Lean Startup Challenge: Money+Mentors=Success!

First, Eric Ries decides to produce a free Lean Startup 101 online course. Now, together with AppSumo guys he is bundling cash, products, and access to mentors all in one package deal.

The Lean Startup Challenge

Here’s how it works. AppSumo has a bundle of solutions for only $99 that purchased individually would run over $6K. They include Twillio, Pivotal Tracker, Postmark, HipChat, Pandaform, Kissmetrics, crazyegg, Chargify, Backbook, WP Engine, Texting.ly, and more.

So after you pay $99 you get to use the apps and you can then submit an entry to the “lean startup challenge” saying how your startup is being “lean” and enter the contest. If your startup is selected as the winner, then you will win some really good prizes, including:

►$50,000 from “500 Startups
One $50,000 investment, access to the 500 Startups incubator program and Five $5,000 seed investments from the fine folks at 500 Startups.

► $50,000 & incubation from Band of Angels and Pivotal Labs
A $50,000 investment from BoA and office space, agile and lean development advice, a Pivotal Inception (two day deep dive on product planning) and help hiring from Pivotal Labs.

► $10,000 of testing services from uTest
$10,000 in functional, usability and/or load testing for your web or mobile apps.

► $8,000 Recurring Billing Services fromChargify
Two 12 month plans with Chargify that will allow you to automate billing and payments for up to 2000 users plus advice on subscription services from the industry experts behind Chargify

… And more. Check the whole list at: http://appsumo.com/leanchallenge/

  • The Lean Startup Challenge Starts: March 7th, 2011
  • The Lean Startup Challenge Ends: March 23rd, 2011

UPDATE: It seems the bundle from AppSumo has been sold out! Too bad…