Class 6 / 12
March 10, 2014
Jen van der Meer | jd1159 at nyu dot edu
Josh Knowles | chasing at spaceship dot com
LEAN LAUNCHPAD AT NYU ITP
Rockets Sketches borrowed from Harry Allen Design
6:00 – 6:45: Activities, Resources and Costs
6:45– 7:30 Workshop set up Ajay Revels – Customer Development Deep Dive
7:30 – 7:45 Break
7:45 – 8:55 Teams Present
TODAY:
MIT Hacking Medicine hackathon at WebMD April 4th-6th.
NYC Innovate Schools• We help early-stage edtech developers:• Understand the key problems facing NYC schools and get validation on
potential solutions.• Navigate the processes of procurement, contracting and IT compliance.• Connect with innovative iZone schools who are interested in piloting
exciting new technologies.
UPCOMING + RESOURCES:
.
WE ARE HERE
1/27Business ModelsCustomer DevelopmentUX Tools Intro
2/3Value PropositionUX Tools, Frameworks
2/10Customer SegmentsResearch Tools
2/17President’s Day
2/24Revenue StreamsDistributionProduct Definition
3/3Customer RelationshipsPartners,Product Development
3/10 Resources, Activities, Costs,Product Development
3/17Spring Break
3/24Customer DevelopmentProduct Development
3/31Customer DevelopmentProduct Development
4/7Customer DevelopmentProduct Development
4/14Customer DevelopmentProduct Development
4/21Product MVP
4/28Lessons Learned
Financial
Physical
Intellectual
Human
KEY RESOURCES
Financial
Equity
Friends Family
Angel
VC – growth
Social impact investing
Equity Crowdfunding
Convertible Debt
Debt that converts to equity
Debt
Small business loans
Trade finance
Working capital debt
Line of credit
Non dilutive grants
SBIR, STPR grants
Open Innovation prizes (XPRIZE, Kaggle)
Social impact foundations (RWJF)
Project Crowdfunding
KEY RESOURCES: FINANCIAL
NEW SOURCES OF FUNDING – AMERICA COMPETES ACT
OPEN INNOVATION– PRIZES AND PULL MECHANISMS
Public open innovation – Federal agencies encouraged to call innovators to a challenge, look for the brightest minds and the best ideas, seek a diversity of solutions, and incentivize those solutions with the highest performing outcomes.
Private sector open innovation – Companies are recognizing the complexity of business and that the best ideas lie outside their organization. Prizes and open innovation exercises are proliferating in all sectors. Often these are non-dlllutive, but beware those programs that are for marketing/branding reasons, or where there is IP or first right of refusal claims in the terms.
NGO open innovation – Foundations and philanthropic organizations are growing faster than for profits, and to incentivize the freshest ideas and solutions, “pull mechanisms” are used to bring forward the best ideas, and reward those that demonstrate the strongest outcome.
Office building/office
Factory/processing
Vehicles
Machines
Hardware
Raw materials/ingredients
Components
KEY RESOURCES: PHYSICAL
KEY RESOURCES
Co-founders
Employees
Contractors
Development firms, contract manufacturing
HUMANS – COMPANY
Mentors – make you smarter about your career
Teachers – provide specific subject matter expertise
Coaches – help you achieve a goal
Advisors – help you make your company succeed
Board members – help the investors succeed
Surround yourself with people that give critical feedback, and help you through a major founder failure point – when you believe your vision is fact.
HUMANS – MENTORS, ADVISORS
Developer/engineer
Designer
Marketer
Scientist
Community manager
When do you need a CEO?
A CFO?
An HR person?
A VP of Sales?
A Chief Revenue officer?
TALENT
Income statement
Balance sheet
Cash flow
Are these the financials you need to understand?
Yes, because it’s the language investors speak, and it’s good to understand the flows of financial reporting –but this is a system used to compare financial performance for investors.
These do not supply execution metrics to help you make decisions and formulate/test hypotheses.
COSTS
COSTS – EXECUTION METRICS
Viral coefficientCACLTVConversion rateRetention rate
What are vanity metrics?
Registered users, downloads, and raw pageviews. A mobile apps could have millions of downloads but only a few hundred thousand active users, or a freemium website might see exploding traffic growth but barely any conversions to paying users. They are metrics that make you feel good, bad for guiding execution.
What metrics will drive you through MVP?
COSTS – EXECUTION METRICS
UNIT ECONOMICS
21
WHAT CAME BEFORE STEVE AND ERIC
FOR NEXT TIME3/24/14
.
POST BREAK PREP:
We’ve toured the canvas.
But you’re not done.
For March 24: Prepare to run through the canvas:
• What is your clear value proposition, how have you validated.
• What segment(s) are you pursuing, how have you validated.
• What resources will you need to get to MVP, and what are the costs?
• What other key elements of the business model canvas do you need to test.
• What remaining hypotheses do you have?
We are here for you, all of the mentors and advisors. Please reach out even if you don’t think you need help.
NEXT: CANVAS REVIEW AND FEEDBACK
APPENDIX
Jen van der Meer, Adjunct Professor at ITP since 2008 ITP courses + workshops: Bodies and Buildings, Products Tell Their Stories, ITP VC Pitchfest, . Currently: Luminary Labs, Angel Investor, Health Data Challenges, Judge for startup competitions, + SVA PoD
Josh Knowles, ITP ’0715+ years as an independent developer/consultant, working with numerous brands and start-up clients (currently under the aegis of Frescher-Southern, Ltd.)
ITP TEACHING TEAM
STUDENT TEAMSTeam Name School
Cognitive Toy Box Lindsey Jones Stern
Tammy Kwan Stern
Hsiang Huang Stern
Alternative Monuments Rodrigo Derteano ITP
Maximo Sica ITP
Ajejandro Puentes ITP
Alon Chitayat ITP
NYBL Sam Slover ITP
Shilpan Bhagat ITP
Max Ma ITP
DiscoverEd Sergio Majluf ITP
Su Hyun Kim ITP
Christina Yugai Stern
Yuliya Parshina Kottas ITP
MENTORS + TEAMS
Tom Igoe @tigoeITP, Arduino, Making Things Talk, NYU ITP Pitchfest
Alternative Monuments
Julie Berkun Fajgenbaum @julieFStern Adjunct Professor, Former VP Amex Open, now startup co-founder
NYBL
Michael Levitz @michael_levitzITP grad, R/GA, Lean
DiscoverED
Sarah Krasley @sarahkrasleyAutodesk, Sustainability, Berkeley
For everyone
Chris Milne @greedo1000IDEO, Toy Lab, Stanford, LEGO
Cognitive Toy Box