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Next, define what you need from a metrics and reporting standpoint. Startup Metrics with Dave McClure Dave McClure has a great presentation on Startup Metrics where he points to some additional metrics that are useful to consider: A : Acquisition - Where / what channels do users come from?
A post by Fred Wilson pointed me to Dave McClure's Startup Metrics presentation. Define what you need from a metrics and reporting standpoint. Startup Metrics for Pirates (SeedCamp, Sept 2009) View more documents from Dave McClure. You only build what you need to prove that model.
That might work for $50-100k but less likely for $3m unless you’re a seasoned entrepreneur, known to the VC, have some metrics that work in your favor or have built something the VC believes to be truly unique. Because management is so important I always tell people to make the bio slide the first in your deck.
Company grew by more than “400% each year” for past few years [assume growth metric = revenues]. Metrics: 2.5mm members, 1,000 brands, 2,500 sale events to-date. Metrics: 50mm users (up from 40mm in Dec 2009), -Competition includes: Spotify , Last.fm. Competitor: Slide. Founded in 2008 by Mehdi Maghsoodnia.
The deck itself was produced by a committee of functional team lead who were asked to do 5–7 slides each for an update. Each section head reads his / her 5–7 slides. If you put up 5 slides on “what should we order for lunch today” the board will spend 30 minutes debating that. There are too many pages. It passes the weight test.
Have minimums but a sliding scale. If 1% of your stock for year one equals 50,000 shares then you might give 10,000 shares when they hit $50,000 in sales and a sliding scale between $50k-$200k. Subjective warrants – I also see warrants given out without hard metrics. I believe that PBW’s should have hard metrics.
There are a million ways to make graphics lighter or resize your file without a huge impact on the quality of the slides?—?after Frankly, it should be your goal to build your deck in a way that it isn’t more than 10mb or you’re doing something wrong. after all you aren’t presenting this at TED. What should be in your deck?
For example, instead of quick slide presentations, teams at Amazon write six-page memos to lay out ideas in narratives to be read in silence at the start of a meeting. Make sure they are seen as based on metrics, and belong to the performer. Jeff Bezos believes strongly that setting high standards has been the key to Amazon's success.
When pitching to investors, entrepreneurs always seem to start with a customer pitch, then add a slide or two about the business. In reality, they need a separate pitch about the business, carrying over only a slide or two about the solution. Remember, investors are buying into the business, not the product.
What I used to do is pencil out my plans for the board deck and strategy topics and my CFO would then pull together the slides and analysis. The full financial details and metrics were in the deck. So my time was freed up to call board members in advance and walk them through our metrics and understand any concerns.
Even if it’s only a few PowerPoint slides or typed paragraphs, writing something down is the first step toward making it real. Before you know it, you will have a ten-slide pitch that you can use to gauge interest from potential customers, as well as friends, family, and early investors.
I recommend a ten-slide pitch to start, reviewed by friends and advisors, to be expanded to a ten-to-twenty-page business plan with opportunity sizing, cost and price details, competitors, marketing and sales strategy, financial projections, and resources required.
What you Before Sets the Course for How Well the Day Goes Make sure you send your financial and operating metrics no less than 72 hours before the board meeting — even better if it can be a week in advance. If you provide these slides in advance you give board members a chance to reflect and come prepared for a real discussion.
The internet has changed business – in helpful and challenging ways: * We have more information and metrics – and more confusion from all the clutter. * Note that companies are not pull OR push…there would be a sliding scale (such as 70/30 push/pull). Are we working harder, under more pressure, but running in place?
Of course there are scenarios where a written business plan is not critical, but I haven’t seen one yet where a well-written 15-page document, or at least a 10-slide pitch, is a negative. From my perspective as a professional investor and long-time advisor to entrepreneurs, much of this urban legend advice is just plain wrong.
The internet has changed business – in helpful and challenging ways: * We have more information and metrics – and more confusion from all the clutter. * Note that companies are not pull OR push…there would be a sliding scale (such as 70/30 push/pull). Are we working harder, under more pressure, but running in place?
The internet has changed business – in helpful and challenging ways: * We have more information and metrics – and more confusion from all the clutter. * Note that companies are not pull OR push…there would be a sliding scale (such as 70/30 push/pull). Are we working harder, under more pressure, but running in place?
In seed stage funding, we’re often told that the investments are ultimately about the people/teams, and not necessarily the metrics. Roam & Wander won me over as soon in the same way that the packed room of investors uttered a unanimous ‘aww’ during their slide deck presentation.
Though, it’s possible that some people were there because of the confusion, Reiss certainly pleased the crowd and kept them in their seats as his presentation with power point slides and funny pictures seemed more like a stand up improv than your typical business presentation.
The only thing we knew, is you sent around this set of slides which was supposed to convey what could bette rbe conveyed in conversation. Some of th epilots have made it far enough to have some metrics, to the point we're having conversations about integration. Talk a bit about your funding, and how you got to it?
Forget Your Slides. Have your slides there, reference the key points as needed, but keep the focus on each other — not a slideshow. Communicate these metrics in the first five minutes of your meeting. You probably have 2-3 minutes to get the investors leaning in, or you’ve likely lost their attention and interest for good.
The internet has changed business – in helpful and challenging ways: * We have more information and metrics – and more confusion from all the clutter. * Note that companies are not pull OR push…there would be a sliding scale (such as 70/30 push/pull). Are we working harder, under more pressure, but running in place?
Examples of milestones: traction as measured by user numbers and user engagement; financial metrics such as cash flow and revenue. Use before and after slides to hit home with investors. This will set you up for step function increases in valuation when you hit those milestones. Choose lead investors with deep pockets.
For what ever reason we’re wired to have amnesia during the run up and prescient memories of how we ‘knew it all along’ as soon as the slide begins. Create company measures for success that go beyond financial metrics. You manage what you measure so be careful about having too narrowly defined of performance metrics.
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