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Free Market Research for Entrepreneurs and Other Cheapskates

David Teten Partner, ff Venture Capital ffvc.com blog: teten.com @dteten New York, NY info@teten.com
2012 David Teten. More at ffvc.com and teten.com
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Download these slides from: teten.com/market-research

2012 David Teten. More at ffvc.com and teten.com

Intro

Tools

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Network

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Introduction Tools of the Trade Signals of Potential Customers Growing Your "Network 2.0" Next Steps

2012 David Teten. More at ffvc.com and teten.com

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Investment Search Process (# Companies)


Highland Capital (2008) Profiled Initially Targets selected Met Negotiated with Due diligence Acquired/ invested 10,000* 1,000 10-20 TA Associates (2006) 8,000 750 10-12 First Round Capital (2009) 2,500 500 NA NA 100 20 Angels on Gust (2010) 20,850 1,315 1,047 NA 577 541 Typical Entrepreneur 3 2 1

2012 David Teten. More at ffvc.com and teten.com

Business plans received Highland data: Economist, Global Heroes: A Report on Entrepreneurship, March 14, 2009, page 9. TA Associates data: The Big Issue: Deal Origination, Corporate Financier, October 2006 First Round Capital data: Aktihanoglu , Murat. NYC Entrepreneur Week Events Take-aways. May 3, 2009. http://centrl.com/blog/?p=53 . Angelsoft data: Website, March 17, 2010.

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ff Venture Capital (ffvc.com)


Early-stage technology venture capital fund Founded 1999, with over 150 investments in over 50 companies Focus on early stage web-based services companies with disruptive models, including SaaS, video gaming, digital media, social, mobile and VoIP First investments typically $50-$250K at valuations of <$5m pre-money 50% of fund reserved for follow-on investments Prominent angel investments include: Cornerstone OnDemand (IPO); Quigo Technologies (sold to AOL for reported $340m); Klout; BetterWorks Partners: John Frankel (21 years Goldman Sachs); David Teten (serial entrepreneur; Chair, Harvard Business School Angels of New York); Alex Katz (CFO); 1 Venture Partner (Michael Yavonditte)
2012 David Teten. More at ffvc.com and teten.com

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Definition of Market Research Market Research is the systematic, objective collection and analysis of data about a particular target market, competition, and/or environment. Always incorporates some form of data collection, whether it be secondary or primary research.

2012 David Teten. More at ffvc.com and teten.com

http://www.marketresearchworld.net/index.php?Itemid=38&id=14&option=com_content&task=view . http://www.flickr.com/photos/niosh/2492013803/

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Why Private Information About Opportunities Is More Valuable Ability of entrepreneur to exploit opportunity Sweet spot of highest returns Customers pay high prices

Customers pay low prices Info is Private Few Competitors


2012 David Teten. More at ffvc.com and teten.com

Info is Public Many Competitors


Inspired by Robert Bruner, Applied Mergers & Acquisitions, page 186

Intro

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Introduction Tools of the Trade Signals of Potential Customers Growing Your "Network 2.0" Next Steps

2012 David Teten. More at ffvc.com and teten.com

Intro

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Google Search Hacks

Filetype:pdf Filetype:ppt Filetype:doc Books.Google.com


eDonkeysearch hard drives

2012 David Teten. More at ffvc.com and teten.com

http://flickr.com/photos/neilt/2517652/sizes/o/ http://flickr.com/photos/neilt/2517652/sizes/o/

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Major Research Databases Often available free for students Public libraries also often offer free access D&B Hoovers Factiva LexisNexis

2012 David Teten. More at ffvc.com and teten.com

http://www.flickr.com/photos/kodomut/3728718035/sizes/l/

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Wall Street Research Charles Schwab account

2012 David Teten. More at ffvc.com and teten.com

http://www.flickr.com/photos/kodomut/3728718035/sizes/l/

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Online Document Repositories/Marketplace for files, publications, presentations, and whitepapers Slideshare presentation slides from conferences/events Scribd, Docstoc, Edocr general Wepapers focus on students Twidox focus on academics Archive.org Web archives

2012 David Teten. More at ffvc.com and teten.com

http://www.flickr.com/photos/sookie/94778946/

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Tools for Tracking Competitors Astragy Attaain Compete Rivalmap Socialtalk SpyFu Tracked Workstreamer

2012 David Teten. More at ffvc.com and teten.com

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Free Social Media Monitoring Tools


Alterian SM2 Social media data aggregation, comprehensive analytics Boardreader Online community search Boardtracker Tracks conversations on discussion boards Blogpulse Trend identification for blogs SocialMention Real time social media keyword search

2012 David Teten. More at ffvc.com and teten.com

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How to Woo Interns


Prestige Open doors Education Substantive experience Target marketing

2012 David Teten. More at ffvc.com and teten.com

http://www.flickr.com/photos/uaeincredible/3333223048/sizes/o/

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Intern Sources in New York


Business Schools Columbia Business School Small Business Consulting Program Insite NY Levin Institute JumpStart NYU EEX Colleges Student Special Interest Groups IIM Ahmedabad Forum for Industry Interaction
2012 David Teten. More at ffvc.com and teten.com http://flickr.com/photos/foundphotoslj/1134148114/

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Customers Observe customers in action In-depth interviews Snowball sampling Ask for referrals to potential buyers to build a sample Online surveys Bleeding-edge users

2012 David Teten. More at ffvc.com and teten.com

http://www.flickr.com/photos/superrabbit/319538167/

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Polling
Recommended: Google Docs can be used for surveys Surveymonkey leading polling service Polldaddy easy interface and comprehensive analytics Also: ask500people buzzdash buzzvote Pollgenius pollpub toluna Twiigs urtak quibblo
2012 David Teten. More at ffvc.com and teten.com http://www.flickr.com/photos/extraketchup/748452643/sizes/o/

Intro

Tools

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Network

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Introduction Tools of the Trade Signals of Potential Customers Growing Your "Network 2.0" Next Steps

2012 David Teten. More at ffvc.com and teten.com

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Grossly Simplified Entrepreneurs Market Map: Social Networking, mid 2005 Business LinkedIn Target Market Social Dating Facebook myspace Match.com US Plentyoffish Europe Geography
2012 David Teten. More at ffvc.com and teten.com This chart is purely illustrative and is not intended to be exhaustive.

Xing Orkut

LatAm

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Other Sample Market Maps Quality Distribution Channel Customer Segment Products

Contextual info about each company to Include Management strength Product strength Client desirability Financial returns
2012 David Teten. More at ffvc.com and teten.com

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Tools

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Character Competence Relevance Strength Information Number Diversity

Introduction Tools of the Trade Signals of Potential Customers Growing Your "Network 2.0" Next Steps

2012 David Teten. More at ffvc.com and teten.com

Intro

Tools

Signals

Network

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Character Competence Relevance Strength Information Number Diversity

Network Valuation Formula Ch Co R S I N D = = = = = = = Character Your Firms Competence Relevance of the contact Strength of your relationship Information Number of people Diversity

= D * ! (Chn*Con *Rn* Sn*In)


n=1
2012 David Teten. More at ffvc.com and teten.com David Teten and Scott Allen, The Virtual Handshake: Opening Doors and Closing Deals Online (www.TheVirtualHandshake.com)

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Character Competence Relevance Strength Information Number Diversity

Biography Analysis Software

Jigsaw Honestly Pipl ZoomInfo

2012 David Teten. More at ffvc.com and teten.com

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Character Competence Relevance Strength Information Number Diversity

Corporate Analysis Software

Glassdoor TheFunded

2012 David Teten. More at ffvc.com and teten.com

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Character Competence Relevance Strength Information Number Diversity

How to Get People to Return Your Calls Affinity Information Others' Credibility Ego Boost

2012 David Teten. More at ffvc.com and teten.com

http://www.nus.edu.sg/oam/studentprofiles.html

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Organizing / Speaking at Conferences Alumni organizations

Character Competence Relevance Strength Information Number Diversity

http://www.flickr.com/photos/programmerman/2315566040/sizes/l/ 2012 David Teten. More at ffvc.com and teten.com

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Character Competence Relevance Strength Information Number Diversity

Online meets Offline

2012 David Teten. More at ffvc.com and teten.com

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Character Competence Relevance Strength Information Number Diversity

Learn from People Whove Been There


Ex-Employees Customers whove analyzed multiple vendors

2012 David Teten. More at ffvc.com and teten.com

http://flickr.com/photos/h-k-d/2898797929/sizes/o/

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Character Competence Relevance Strength Information Number Diversity

Customer Relationship Management (CRM)

2012 David Teten. More at ffvc.com and teten.com

http://flickr.com/photos/misterdna/49841409/sizes/l/

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Character Competence Relevance Strength Information Number Diversity

Gated Communities for Executives


IERGOnline.com Executive-Forum.org INMobile.org Sermo.com Platforms LinkedIn Ning Xing Groups.Yahoo.com Grouply
2012 David Teten. More at ffvc.com and teten.com

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Character Competence Relevance Strength Information Number Diversity

Take One Step


By industry By geography By personal characteristics

2012 David Teten. More at ffvc.com and teten.com

http://flickr.com/photos/extranoise/169187125/sizes/l/

Intro

Tools

Signals

Network

Next Steps

Introduction Tools of the Trade Signals of Potential Customers Growing Your "Network 2.0" Next Steps

2012 David Teten. More at ffvc.com and teten.com

Intro

Tools

Signals

Network

Next Steps

Any questions ? slides at teten.com/market-research

2012 David Teten. More at ffvc.com and teten.com