Presentation by Dan Lemberg Baltimore Lean Startup meetup July 24, 2012

1. From Lean Canvas to Lean Pitch
Leveraging the Lean Canvas to A0ract Investors

2. Startups are like Subprime Loans
Low Risk, 3‐5 % yield
Medium Risk, 6‐10 % yield
Value: Known!
? Risk – Unknown!
Yield – Unknown!
Value – ???
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3. How Investors Win – Bundling Risk
• One investment with
a 10% chance of a
20x ROI is a gamble
• Ten investments with
a 10% chance of a
20x ROI doubles your
money
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4. How You Win – Get Included!
To be included in the bundle, you need to help investors
quanAfy your risk (low is good!) and yield (high is good!).
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The lean canvas helps you do that! Why? Because…
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5. Investors Unconsciously Think in Lean
Phase Investors Running Lean
by Ash Maurya
Phase 1 Prove you have a Business Problem / SoluPon Fit
Phase 2 Prove you have a Product SoluPon / Market Fit
Phase 3 Prove you can Execute Scale
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6. Lean Canvas to the Lean Pitch
• Prove you have a Business
• Prove you have a Product
• Prove you can Execute
Each proof requires the prior.
Execu:on can be improved if
you have a good product.
Product issues can be solved if
you have a good business.
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7. Prove you have a Business
Needs to be rock solid Slides
• They are buying into you as much as the idea! Intro &
You! • What makes you more likely to succeed? Agenda
Market
Customer • What is your target market? Overview
Segments • How big is it and who parPcipates in it?
Business
Drivers
• What problem are you trying to solve?
Problem • How do you know it’s a problem & how big is Market
it?
Challenges
• How much do they pay for soluPons today?
Revenue Impact by
• If they don’t pay now, why in the future?
Segment
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8. Prove you have a Product
Needs to be highly credible Slides
• What are you selling and for how much? SoluPon
SoluPon • Who are you compePng against? Overview
Pricing
Unique Value • How do you differenPate yourself? Strategy
ProposiPon • What’s the impact on your compePPve posiPon
CompePPve
Assessment
Unfair • Why won’t company X ‐ who is bigger, more
Advantages mature, and beaer funded ‐ simply copy you? MarkePng
Strategy
• How are you going to reach the customer? Sales
Channels • What is the sales and markePng strategy? Strategy
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9. Prove you can Execute
Except for the end-game, this will change! Slides
ExecuPon • How are you going to structure your team? ExecuPon
Plan • How are you going to grow? Plan
Key Dates
• What are your key tasks & milestones? & Metrics
Key Metrics • How should your progress be judged?
Financial
Plan
Cost • How much will it take to fund your acPviPes?
Structure • What are your financial projecPons? Funding
Strategy
What’s in it
• What’s the end‐game: go public or sell out?
for the Q&A &
• How much do you need and what do we get?
investor? Feedback
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10. Closing Thoughts
• Investors are looking for high yield with controllable risk
• For a start‐up, Business > Product > ExecuPon
• The lean canvas helps you think through your pitch
• Three things are missing:
• Their end‐game – whens the payout & how much?
• Your execuAon plan – how do you deliver the goods?
• The value of you – why are you a beaer bet than the next guy?
• You can present your pitch in 15 to 20 slides
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