#SEFI @Founding

So You Have a Startup Idea?
Startup Ideation 101 @Z2David @DaveParkerSEA

Agenda
‡ What investors look for? ‡ Big Ideas/ Big Market ‡ Business model? ‡ 7 Rules ‡ Example ‡ BREAK ‡ Your Turn

Rules of the Road
‡ Don t Ramble I ll interrupt ‡ Network you need to build your network ‡ Apply http://fi.co/join/bootcamp for a chance to win the iPad winner will be drawn after the application deadline Sunday Feb 26th

http://fi.co/join/bootcamp
‡ 15 Week Program with Local and SV Mentors ‡ Ideation to fundraising ‡ Office hours/Individual coaching ‡ Monday night meals ‡ Costs *see FAQ
± ± ± ± $50 Application Fee/Test Waived $995 Course Fee 3.5% of company into shared pool (peers, mentors and FI) Post funding tuition - $4,500

Mentors
‡ Andy Liu ‡ Todd Hooper ‡ Dan Schapiro ‡ T.A. McCann ‡ Rebecca Lovell

Introductions
David Bluhm ‡ CEO & Co-Founder of Z2Live makers of TradeNations & Battle Nations, MetalStorm backed by Madrona ‡ Co-Founder at Medio Systems ‡ CEO NextMedium ‡ CEO GoTV Networks ‡ 2 IPO s 7 Acquisitions Dave Parker ‡ Director, Seattle Founder Institute ‡ CEO & Co-Founder Bundled.com ‡ Co-Founder OneAccord Partners ‡ Board Member Guidant Financial ‡ Former Board Member Classmates.com

Don t be afraid to share your idea!
‡ Ideas don¶t matter ± feedback, execution and iteration do ‡ You have more to gain than to lose ‡ Nobody is going to steal your stupid idea ‡ Don¶t ask an Investor to sign your NDA

Most of you have bad ideas, anyway.

Really.

How Investors See You

‡Big Market/Big Idea ‡Team that can execute ‡Scalable Product ‡Traction

About Markets?
‡ B2B or B2C ‡ Billions ‡ $100M ‡ If you own the market how big would your be ‡ Established vs. Immature ‡ Market Leader vs. First Mover ‡ Known or unknown ‡ Go-To-Market

Big Ideas?
‡ Simple ‡ Aha idea ‡ Transformational vs. Incremental ‡ Changes the world ‡ Changes the market ‡ Established or New Idea

‡ Passion! ‡ Ideas! ‡ Product

‡ Doesn t make it a great business ‡ Execution ‡ Company

13 Consumer Models

13 Consumer Models
‡ TechCrunch Teardown: 13 Consumer Internet Business Models (Part I) « The World According To Carp http://fndri.com/jEvuYa - Steven Carpenter
± Media ± Paid Service ± Physical Commerce

‡ Your idea has to foot to a model! ‡ Benchmarks

Your examples
‡ What model will you use? How will you model it

7 Rules

7 Rules
1. Simple ideas win 2. You have one revenue stream 3. Name your customer 4. Make something explainable 5. Small markets suck 6. Mix in secret sauce 7. Be original

Explain Your Idea

Idealibs for Startups
I want to develop to help (a defined offering) (a target audience)

(solve a problem) (with secret sauce)

The Offering
‡ Be Specific
± a social utility" vs "an ecommerce website"

‡ Avoid Buzzwords
± "mobile social CRM" vs "an iPhone application"

‡ Skip the Adjectives and Superlatives
± "a revolutionary service" vs "backend software"

The Audience
‡ Identify Demographics
± "female consumers" vs new mothers"

‡ Specify Your Market
± "artists and musicians" vs "unsigned alternative bands"

‡ Clarify the Buyer
± "large businesses" vs "purchasing managers at multinational companies"

The Problem
‡ Make sure everyone can understand the offering. ‡ Hint at a viable revenue model.
± "find deals online" vs "shop for hip baby products at wholesale prices"

The Secret Sauce
‡ Explain what makes your business unique.
± "faster" vs "with automated ordering for diapers and other staples

BREAK

Your Turn!

Workshop

Step 1: Articulate
I am developing (a defined offering) to help (a target audience)

(solve a problem)

(with secret sauce).

Step 2: Evaluate
Simple idea? Identifiable customer? Large enough market? Original? One revenue stream? Easily explainable? Legitimate secret sauce?

Thank You!

David Bluhm @Z2David

Dave Parker @DaveParkerSEA ForestTreesBark.com

http://fi.co/join/bootcamp Application Deadline Feb 26th Session Starts Mar 5th

http://fi.co/join/bootcamp
‡ 15 Week Program with Local and SV Mentors ‡ Ideation to fundraising ‡ Office hours/Individual coaching ‡ Monday night meals ‡ Costs
± ± ± ± $50 Application Fee/Test Waived! $995 Course Fee 3.5% of company into shared pool (peers, mentors and FI) Post funding tuition - $4,500

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