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
http://www.flickr.com/photos/roblee/133498854/

Don’t Take Notes!

Download these slides from: teten.com/market-research

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

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

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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.

Intro

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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

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

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Google Search Hacks

•  Filetype:pdf •  Filetype:ppt •  Filetype:doc •  Books.Google.com
eDonkey—search hard drives

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

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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

Intro

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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

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

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Grossly Simplified Entrepreneur’s 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

Intro

Tools

Signals

Network

Next Steps

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 Firm’s 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)

N

Intro

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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

Intro

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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

Intro

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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

Intro

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Online meets Offline

© 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

Learn from People Who’ve Been There
•  Ex-Employees •  Customers who’ve analyzed multiple vendors

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

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

Intro

Tools

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Network

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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/

Intro

Tools

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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

Intro

Tools

Signals

Network

Next Steps

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

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