Warsaw Startup Night Düsseldorf, April 19th 2018

Transcript

1. DÜSSELDORF 
 APRIL 19TH 2018 WARSAW STARTUP NIGHT POLNISCHE INSTITUT DÜSSELDORF
2. AGENDA • About NRW & Germany • The Three Pitches • How to take your company to Germany
 (Q&A) • You pitch (5 minutes) & Get Feedback 1300 - 1700 
 APRIL 19TH 2018
3. MORE VIDARANDERSEN.COM VIDAR ANDERSEN • STARTUP FOUNDER • EDUCATOR • INNOVATION ADVISOR FOUNDING PRINCIPAL +ANDERSEN & ASSOCIATES
4. SOME OF THE PEOPLE I HAVE PITCHED IN PERSON AROUND THE WORLD
6. SOME OF THE PLACES I HAVE BEEN FEATURED AROUND THE WORLD
8. I HAVE TRAINED OVER 620 STARTUPS 
 HOW TO PITCH
9. STARTUP
 SUCCESS IN GERMANY
10. WHY GER MA NY WHY COME HERE?
11. 28% 
 OF EURO AREA ECONOMY #1 economy
12. WORLD CLASS
 UNIVERSITIES free education
13. STRONG INDUSTRY 33 GLOBAL F500 33
 F500
14. THE HEART OF EUROPE
15. BIOTECH & PHARMA CLUSTERS
16. ENERGY & ENVIRONMENT CLUSTERS
17. FINANCE CLUSTERS
18. MEDICINE
 & HEALTH CLUSTERS
19. TECHNOLOGY
 & INNOVATION CLUSTERS
20. TRANSPORT
 & LOGISTICS CLUSTERS
21. STARTUP CLUSTERS #1
22. NUMBER 2 IN STARTUP DEALS
23. VC FINANCING ON THE RISE
24. MOST ACTIVE VC IN GERMANY
25. INTERNATIONAL VC ALREADY INVEST HERE
26. NOTABLE ACQUISITIONS
27. Parstream → Cisco October 2015 Undisclosed 6Wunderkinder → Microsoft June 2015 €100 - 200 million Quandoo → Recruit March 2015 €202.5 million Fyber (SponsorPay) → RNTS October 2014 $150 million
28. TeamViewer → Permira May 2014 €830 million Sociomantic → Dunnhumby April 2014 €150 million Trivago → Expedia (sold only part) December 2012 €477 million. DailyDeal → Google September 2011 €82.8 million
29. Bigpoint → Summit Partners 
 and TA Associates April 2011 €272.6 million brands4friends → eBay December 2010 €150 million
30. NOTABLE IPO
31. Ferratum February 2015 €110.8 million. Rocket Internet October 2014 €6.5 Billion Zalando October 2014 €5.3 billion
32. trivago December 2016 €4 Billion
33. WHY NRW? THE SECRET SAUCE
34. DENSITY POTENTIAL CUSTOMERS 50M PEOPLE
35. DENSITY POTENTIAL PARTNERS 10 GLOBAL F500 COMPANY F500 CITY Deutsche Telekom 89 Bonn Deutsche Post DHL 98 Bonn Lufthansa 248 Cologne Bayer 187 Leverkusen E.ON 16 Duesseldor f Metro 72 Duesseldor f Franz Haniel 272 Duisburg RWE 124 Essen ThyssenKrupp 122 Essen Bertelsmann 492 Guetersloh
36. DENSITY POTENTIAL CUSTOMERS 747.000 
 SME
37. DENSITY POTENTIAL PARTNERS #1 IN HIDDEN CHAMPS STATE RANK AMOUNT NRW 1 293 Baden Wutteberg 2 277 Bayern 3 211 Hessen 4 119 Rheinland Pfalz 5 59 TOTAL 1.147
38. REGULAR FLIGHTS SILICON VALLEY TEL AVIV NRW CHINA JPN CGN + DUS
39. 3:20h 3h 4:30h 4:20h 2h 1:50h 4h FAST TRAINS
40. EMERGING VIABLE CLUSTER MAJOR STARTUP HUB #1 #2
41. LOCAL VC PRESENT HERE &MORE
42. MAJOR VC ALREADY INVEST HERE &MORE
43. CONNECTING SMB WITH STARTUPS DIGITAL HUBS
44. OFFICE SPACE PLENTIFUL
45. LOW COST & QUALITY OF LIFE
46. COMMUNITY VIBRANT & CONNECTED &MUCH MORE
47. NOTABLE NRW EXITS STARTUP ACQUISITIONS
48. DAILY ONLINE DEALS FOR CONSUMER GOODS
49. DAILYDEAL COLOGNE, NRW FOUNDED 2009 - EXIT 2011 €83 MILLION
50. BIG DATA ANALYTICS 
 ONLINE PLATFORM
51. PARSTREAM COLOGNE, NRW FOUNDED 2011 - EXIT 2015 €XXX MILLION
52. ONLINE 
 SHOPPING PORTAL
53. HITMEISTER COLOGNE, NRW FOUNDED 2007 - EXIT 2016 €XXX MILLION
54. SECURE 
 COMMUNICATIONS
55. SECUSMART DUSSELDORF, NRW FOUNDED 2007 - EXIT 2014 €XXX MILLION
56. GOOGLE SEARCH 
 FOR HOTEL DEALS
57. TRIVAGO DUSSELDORF, NRW FOUNDED 2005 - PART-EXIT 2012 €477 MILLION
58. TRIVAGO DUSSELDORF, NRW TAKEN PUBLIC DEC. 2016 $ +4 BILLION IPO
59. GLOBAL CAMPUS DUSSELDORF 2018
61. WHO’S NEXT? NRW CONTENDERS
62. SILICON VALLEY TECH MADE IN NRW
63. ARANGO DB COLOGNE, NRW ArangoDB is a multi-model mostly-memory database with a flexible data model for documents and graphs. It is designed 
 as a “general purpose database”, offering all the features 
 you typically need for modern web applications
64. NRW FINTECH
 FUNDED BY NYC VC
65. AUXMONEY DUSSELDORF, NRW auxmoney is an online peer-to-peer loan marketplace,
 a “Lender’s Club” in Europe
66. FROM DUS TO
 SAN FRANCISCO
67. SHOP.CO DUSSELDORF, NRW 
 The Universal Online Shopping Cart
68. NRW HELPS SOFTWARE EAT WORLD
69. GIANT SWARM COLOGNE, NRW Simple Microservice Infrastructure, built for developers
70. NRW STARTUP TAKES ON AWS
71. GRIDSCALE COLOGNE, NRW Cloud Servers per Drag & Drop
72. A JET.COM FOR EUROPE
73. CROWDFOX COLOGNE, NRW Online members marketplace
 cheaper than Amazon
74. INTERNET OF THINGS (IOT) PLATFORM
75. CUMULOCITY DUSSELDORF, NRW IoT Services for Consumer Products
76. SURPRISE!
77. CUMULOCITY DUSSELDORF, NRW FOUNDED 2013
 EXIT 27.03.2017 €XXX MILLION
78. WORLD FAMOUS &
 CONTROVERSIAL
79. EYEO COLOGNE, NRW “Making the Internet better for everyone -
 Starting with bad ads”
80. FROM CGN TO
 SAN FRANCISCO TOO
81. QUINTLY COLOGNE, NRW The professional social media benchmarking 
 and analytics solution
82. WELCOME! NRW A GREAT PLACE FOR STARTUPS
83. PITCHINGMASTERCLASS.COM PITCHING MASTERCLASS
84. FIRST THING FIRST
85. ASK YOURSELF 
 ARE YOU A STARTUP OR A NEW COMPANY?
86. A STARTUP IS A TEMPORARY ORGANISATION IN SEARCH OF A SCALABLE & REPEATABLE BUSINESS MODEL OPERATING IN AN ENVIRONMENT OF 
 EXTREME UNCERTAINTY
87. A COMPANY IS A PERMANENT ORGANISATION DESIGNED TO EXECUTE A PROVEN REPEATABLE & SCALABLE BUSINESS MODEL IN A PREDICTABLE AND STABLE ENVIRONMENT
88. BOTH AWESOME BUT DIFFERENT
89. EXECUTION SCALABILITY
 FINANCING DIFFERENT
90. THIS CONTENT IS FOR STARTUPS IF YOU ARE A COMPANY WRITE A BUSINESS PLAN
91. INVESTORS DO NOT EXIST TO GIVE YOU PERMISSION TO START ANYTHING OR TO MAKE GOLD OUT OF YOUR CRAP IDEAS NOR YOUR SH!TTY TEAM
92. REALITY TODAY
93. AN INVESTMENT IS A NEXT STEP AFTER FIRST HAVING DONE SOME INTERESTING SH!T ON YOUR OWN
94. INVESTORS 
 ARE COMMODITIES YOU ARE 
 THE PRIZE
95. SO STOP SUCKING UP TO INVESTORS
96. WARNING WARNING WARNING
97. STARTUP PITCH COMPETITIONS ARE SUCCESS THEATRE BULLSH!T
98. BUT WHERE ELSE ARE YOU GOING TO GET THE TRAINING
99. NEVER MISTAKE PITCH COMPETITIONS FOR PITCHING INVESTORS EVER
100. TL;DR THE ONE SINGLE TAKE-AWAY
101. TL;DR - THE ONE THING Answer these two simple questions:
 
 “WHAT PROBLEM ARE YOU SOLVING & WHAT SOLUTION DO YOU OFFER?” 
 You must be able to tell this in one or two short sentences AT ALL TIMES - even in your sleep
102. GUT CHECK What PROBLEM do you solve
 & HOW are you SOLVING it?
103. REALITY CHECK What is the VC investor looking for?
104. WHAT WE PITCH Problem / Need, Solution, Market Size, Goto Market, Team, Competition, Financials, Ask, BLA BLA BLA ETC
105. WHAT THE VC HEARS 1. Is there money to be made here? 2. Are these the right people who will make me money? 3. How much money can we make here (with these people)?
106. REALITY CHECK A VC WILL INVEST
 IF AND ONLY IF
 TEAM IS COMPLETE & RIGHT, TOTAL MARKET SIZE IS BIG (REALLY F*ING BIG)
107. VENTURE CAPITALIST (VC) VS BUSINESS
 ANGEL
108. THREE
 TYPES OF 
 PITCHES
109. THE THREE PITCHES 1.The High-Concept Pitch 2.The Elevator Pitch 3.The Pitch Deck
110. PITCH PROGRESSION 1. A high concept pitch gets people’s attention, an incentive to let you keep talking 2. An elevator pitch convinces investors to ask for and read your deck 3. A deck sells investors on taking a meeting 4. A meeting will lead to a funding decision
111. HIGH-CONCEPT PITCH “Summarises the company’s business on the back of a business card” - Sequoia Capital
112. HIGH CONCEPT PITCH Distills a startup’s vision into a single sentence The “We are the X for Y” pitch The “twitter pitch” Perfect tool for fans and investors to spread the word about your company
113. Be brief: One short sentence Be familiar: A 6 year old child should understand the words and concepts in your pitch HIGH CONCEPT PITCH
114. THE ELEVATOR PITCH 30 seconds to sell a captive audience
115. ELEVATOR PITCH The major components of the elevator pitch are:
 
 TRACTION, PRODUCT, TEAM 
 & SOCIAL PROOF 
 “An introduction captures an investor’s attention, a great elevator pitch gets a meeting.”
116. Many investors will ignore your deck and ONLY take a meeting if the introduction and elevator pitch are good 
 Without an introduction, an elevator pitch is critical to a successful cold e-mail or getting that meeting
117. ELEVATOR PITCH TRACTION PRODUCT TEAM SOCIAL PROOF 30 seconds to sell a captive audience
118. THE PITCH DECK 13 magic slides to a funding decision
119. BUT 
 WAIT
120. IS YOUR PITCH 
 A DATA PITCH 
 OR A VISION PITCH?
121. PRE-LAUNCH SELL THE VISION LIKE NO TOMORROW - 
 IT’S ALL YOU GOT RIGHT NOW POST-LAUNCH BE PREPARED PREPARE TO SHOW YOUR REAL ACTUAL METRICS
122. THE PITCH DECK An introduction and elevator pitch are critical to getting a meeting And the pitch deck is what you send investors and what you present in that meeting The deck is NOT a Business Plan - SERIOUSLY NEVER send an investor a business plan - EVER
123. DECK CONTENTS 1. 
 COVER 2. 
 MISSION 3. 
 SUMMARY 4. 
 TEAM 5. 
 PROBLEM 6. 
 SOLUTION 7. 
 TECH 8. 
 MARKETING 9. 
 SALES 10. 
 COMPETITION 11.
 MILESTONES 12.
 CONCLUSION 13.
 FINANCING
 
 
 

125. COVER
 MEMORABLE
126. COVER LOGO TAGLINE CONTACT DETAILS 30PT FONTS OR HIGHER
128. MISSION
 WHAT YOU ARE STRIVING TO ACHIEVE - 
 THE WHY & HOW
129. MISSION What you will do and how you will do it Also: What you will NOT do The thing you are striving to accomplish but have yet to complete Optionally: Fill white space with logos of customers and testimonials What will also guide decision making for you e.g. ”Acme Gadgets will create and dominate a new network service category that defends web applications from distributed-denial-of- service attacks."
131. SUMMARY
 SH!T WE HAVE DONE
132. SUMMARY Summarise the key, compelling facts of 
 the company You can steal the content from your 
 elevator pitch ONLY things you HAVE DONE, not what you may or may not do in the future
134. TEAM
 BRAG - WHY YOU ARE SO F* AWESOME
135. TEAM Highlight the past accomplishments of the team, BRAG If your team has been successful before, investors may believe it will be successful again (although a logical fallacy) Do NOT include positions you intend to fill (save that for the Milestones slide) Tell a story about how your career has led to the discovery of the… Put yourself last in team if you must: it seems humble
137. PROBLEM BE QUICK, BE EMOTIONAL
138. PROBLEM Without yet getting into your product or service, describe the nature of the problem you address Emphasise the pain level and the inability of incumbents, the current established players, to satisfy the customer need
140. SOLUTION
 SHOW - DON’T TELL
141. SOLUTION Introduce your product, and the benefits (which should obviously address and fit the market problem you just described like hand in glove) SHOW DON’T TELL: Include a demo such as a screencast, a link to working software, or pictures. ONE SLIDE ONLY: This is not your product manual
142. GOD HELP YOU 
 IF YOU HAVE 
 NOTHING 
 TO SHOW
143. Solution Presentation Pro Tip: You have to prepare for any and all eventualities if you are demoing product - Videos will stop working, Internet will disappear, and so on ALWAYS have the following prepared in your deck: 1. Live Demo (link out - skip to next slide if not working) 2. Video of pre-recorded Live Demo (skip to next slide if not working) 3. Screenshot sequence of key features in pre-recorded demo (always works) Start with 1 and skip ahead towards 3 if everything fails, LIVE in same presentation Practice the SAME user journey story through your solution for 1, 2 & 3 DO NOT EVER MENTION SOMETHING NOT WORKING - just move on to next option and NO ONE will ever notice that the live demo or video did not work.
145. TECHNOLOGY
 HARD FACTS - WHAT’S UNDER THE BONNET
146. TECHNOLOGY Elaborate on the technology or methodology you have developed to enable your unique approach Open Source? Licensed? DIY? Are there hidden costs and liabilities? Is the IP yours or someone else’s? Maintaining your own software is going to be how costly vs using something else? If appropriate, mention patent status
148. MARKETING QUANT -
 NO BULLSH!T PROJECTIONS
149. MARKETING Include market size estimates here or in the Problem If you haven’t launched, discuss your plan to acquire users or customers, show the expected cost of customer acquisition If you have launched, include CAC vs CLTV & growth rate and activation rates, if appropriate
150. mint.com acquisition strategy as pitched
152. SALES ACTUAL -
 NOT BIZ DEV
153. “NO BUSINESS PLAN EVER SURVIVES FIRST CONTACT WITH CUSTOMER” STEVE BLANK 
 FATHER OF THE LEAN STARTUP
154. SALES If you don’t have sales, discuss your business model and prospective customers, use a Business Model Canvas (BMC) to explain it all in one single slide IGNORE the cost of customer acquisition UNLESS you have some insight into the issue IF you have sales, show off early customer or distribution progress: show numbers, logos, testimonials
155. time 
 out
156. SPOT CHECK 
 UNFAMILIAR TERMS Key Metrics Explained
157. CAC VS LTV
158. For each dollar you spend acquiring a customer, how many dollars does it leave behind in the whole lifespan you have them as a customer? CAC = Customer Acquisition Cost LTV = Customer Lifetime Value A CAC : LTV ratio of 1 : 3 or better = Good CAC VS LTV
159. • High Churn Rate • Low Customer 
 Satisfaction • Lack Of Stickiness • Recurring Revenue • Scalable Pricing • Cross-Sell / Up-Sell • Additions To Product
 Catalogue • Lead-Gen For 3Rd Party • Sales Force In The Field • Outbound Marketing • Unoptimised Campaign • Wrong Target Audience • Wrong Channel • No Network Effects • Network Effects • Inbound Marketing • Free Or Freemium • Open Source • Free Trial • Touchless Conversion • Direct Marketing • Channels • Strategic Partnerships CAC LTV CAC VS LTV - DRIVING FACTORS
160. GROWTH
161. GROWTH RATE “Startups = Growth” by Paul Graham of YC What is your growth week over week? More than 7% week over week is good
162. ENGAGEMENT
163. “30 / 10 / 1” by Fred “AVC” Wilson What is the % of all your registered users that will use the service or app Monthly / Daily / Concurrent (At Any Given Time)? 30/10/1 or better is good ENGAGEMENT RATE
164. COHORTS
165. COHORT ANALYSIS
166. SERIOUSLY YOU NEED TO UNDERSTAND IT COHORTANALYSIS.COM
167. CHURN
168. CHURN RATE
169. SERIOUSLY YOU NEED TO UNDERSTAND IT CHURN-RATE.COM
170. SaaS METRICS
171. SAAS METRICS - YOU NEED TO 
 UNDERSTAND IT & TRACK IT
172. SaaS
 FUNDING NAPKIN
 2018
173. TAM - Total Available Market
 Theoretical total market size or customer 
 mass with problem today SAM - Serviceable Available Market
 Theoretical total market size or customer mass 
 that are able to use / purchase a solution like 
 yours right now SOM - Serviceable Obtainable Market 
 Your target market cap or customer base within 
 the next 2-3 years, your credible ambition TAM SAM SOM DEFINING MARKET SIZE
174. HOW TO FIND MARKET DATA JFGI
175. BUSINESS MODEL CANVAS
176. BACK TO THE 
 DECK
178. COMPETITION THE HONEST TRUTH
179. COMPETITION Describe why users or customers use your product instead of the competition’s product Describe any competitive advantages that remain after the competition decides to copy you exactly, your UNFAIR ADVANTAGES Competitive landscape. Be sure to anticipate competitive responses (before the VC does and puts you in an embarrassing spot) Never deny that you have competitors, no matter how unique you think you are. It is OK to compete. Even against giants. Are you in an existing market, a re-segmented market, a new market or a clone market? Figure it out.
180. EXISTING MARKET Classic: “Up and to the right” Quality Economical Expensive Discounted High Low CO A CO B CO D MY CO CO C CO D CO A CO B CO C MY CO
181. RE-SEGMENTED MARKET Product Comparison Matrix
182. CLONED MARKET Why and how will this work here? Show how you understand and have validated the local needs & differences
183. NEW MARKET “Petal Diagram”
185. MILESTONES
 WHEN, WHAT & WHY - NO PROJECTIONS
186. DAVE MCCLURE
 SHAMED SEXUAL HARASSER
 EX-CEO 500 STARTUPS
187. SERIOUSLY
 NO F*ING PROJECTIONS
188. MILESTONES DO NOT build a detailed financial model if you don’t have past earnings, a significant financial history, or real insights into the issue - It’s a bullshit fantasy exercise wasting everybody’s time. Instead, include your current status and milestones for the next 1-3 quarters for product, team, marketing, sales with quarterly and cumulative burn rates. How are you going to burn the investor’s money in the next 12-16 months and what experiments do that cover and what do you expect to get out of (test & learn) those experiments?
190. CONCLUSION RINSE, LATHER & REPEAT
191. CONCLUSION This slide can be inspirational, a larger VISION of what the company could do if these current plans are realised, how wonderful a place the world will be. Or just repeat a modified version of the “Summary” slide.
193. FINANCING GIVE + ASK
194. FINANCING How much money you are raising in this round How much of your company are you ready to sell in this round “We believe we will create significantly more value with an investment of $X and we are prepared to sell up to Y% of our company.” Dates, amounts, and sources of money raised to date (Cap Table) If this is your first round, your valuation is based on thin air - so don’t sweat it: 
 The more important and “real” valuations will come with later rounds Remember, you can give different ASK & GIVE to different investors (assume everybody talks to everybody) but once your deck is out the door, you’ll be surprised where it might end up Congratulations - The clock is ticking: You now have about 3 months to close the round
195. don’t 
 forget
196. TELL A F*ING STORY
197. AS YOU WOULD TO A 6 YEAR OLD
198. SEQUENCE OF STORY “We have a mission and the team that is taking us there. Why? We discovered a large problem and solved it with a product that has this amazing technology inside. 
 
 We’re going to market and sell it to these customers, with these advantages over our competitors.
 
 In particular, we’re working towards these milestones over the next few quarters. 
 
 In conclusion, this is a great investment opportunity right now.”
199. Words 7% Voice 38% Facial Expression 55%
 
 93% IS HOW YOU SAY IT 
 
 NOT WHAT YOU SAY
200. SO SHOW SOME F*ING ENTHUSIASM
201. LET’S PITCH 5 MINUTES IT’S YOUR TURN NOW
 PITCH & GET FEEDBACK
202. LET’S CONNECT VIDARANDERSEN.COM THANK YOU
 AND GOOD LUCK