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Warsaw Startup Night Düsseldorf, April 19th 2018

Warsaw Startup Night Düsseldorf, April 19th 2018

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Vidar Andersen

April 19, 2018
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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
  5. None
  6. SOME OF THE PLACES I HAVE BEEN FEATURED AROUND THE

    WORLD
  7. None
  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

  60. None
  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
 
 
 

  124. 1

  125. COVER
 MEMORABLE

  126. COVER LOGO TAGLINE CONTACT DETAILS 30PT FONTS OR HIGHER

  127. 2

  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."
  130. 3

  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
  133. 4

  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
  136. 5

  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
  139. 6

  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.
  144. 7

  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
  147. 8

  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

  151. 9

  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

  177. 10

  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”

  184. 11

  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?
  189. 12

  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.
  192. 13

  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