1. Startups:
Prevent failure !
by financial modeling!
Bryan’s talk as a Founder’s Institute Mentor

2. Hi. I am…
Bryan Starbuck
Former CEO & Founder of
TalentSpring (Acquired in 2010)
Currently:
CTO at Crystal Commerce
BryanStarbuck@hotmail.com

3. Height
Here is the simple
rectangle test
th
id
Width =
# of Customers
Height = Price
OPTIONAL:
Depth =
# of Units per
Customer

4. Example: Selling to “Project
Managers in the USA”
204,760 project managers
Our price
is $19 per
year

5. Example: Selling to “Project
Managers in the USA”
Maximum revenue
(and selling to
EVERY
$3.8
product manager)
204,760
$19 /per year
million / year

6. Model revenue early in order
to completely change your
pricing model to form an
ideal business model

7. Investors start
off pessimistic
Interest
High
Start
Image: @5imon
Low
Make this
happen

8. This is what investors
expect
A company
targeting a
$40m to $80m year
business model
Image: @Theodore Scott

9. 95 of 100 companies go
after too small of a market
Image: @Theodore Scott

10. This is what they want
Able to reach > $100m rev for Angels.
VCs want > $400m or > $800m
Image: @Theodore Scott

11. Focus on WOWing these 4:!
1!
2!
3!
4!
There is a REAL & significant problem
for the customer!
This company has a real solution. !
No other solution exists in the market!
People will pay !
(this company’s prices)!
This is a HUGE market!

12. Now I’ll show deep financial
modeling…
Now switching
to excel

13. THE END!
!
Q & A!