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CONTENTS
1 BUILDING A TEAM
2 RESILIENCE
3 MARKET VALIDATION
4 SOCIAL ENTERPRISE
5 GOING GLOBAL
6 GROWTH HACKING
7 EXPONENTIAL TECHNOLOGY
8 FUNDING
9 PITCHING
S T E F A N K O R N CEO CREATIVE HQ
INTRO
With all of Creative HQrsquos initiatives people are at the heart of what we doWe are a team of passionate entrepreneurs who stimulate early stage business creation growth and connectivity with other players in the innovation ecosystem
We work with a range of entrepreneurs mentors and coaches to bring startup thinking to workplaces We help innovators rapidly validate and deliver new product and service conceptsWith this free resource we are looking to help you ignite and unleash your inner entrepreneurPeople are often asking us the nitty-gritty questions on how to actually initiate a startup ndash this Startup Guide acts as a resource pulling together relevant tips and tricks from the people and startups who have been there done thatEach section centres around different themes that early stage ventures struggle with building a kick-ass team validating your market raising funding and growth hacking to name a few Read them all or read the topics that apply to you right now
Content
MENTOR INSIGHT_DAVID CLEARWATER
STARTUP INSIGHT_HOW TO BUILD A STARTUP TEAM WIPSTER
OTHER RESOURCES_TEAM BUILDING
It pays off to develop the right team and culture for your business
Business life is full of highs and lows your team are with you all the way and are often the people you spend the most time with Hear from experienced people whorsquove built successful teams
BUILDING AN AWESOME TEAM
What does it take to successfully build a startup team
ME
NT
OR
IN
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HT
If yoursquore a founder you have two jobs
FIRST you need to form the right team
SECOND you need to help the team to form right
Forming the right team means finding the right mix of skills experiences networks and personalities that will help your startup fly
Helping the team form right is about what happens once you have a bunch of humans trying to do something together Drama and excitement is a dead certainty Too much of either will kill the horse Your role is to guide the team to build trust that delivers high performance over time
How to do that
Fortunately for you new team formation follows a pretty predictable pattern Get your head around Tuckmanrsquos Forming gt Storming gt Norming gt Performing model
Ask yourself and your team what stage are we at
What will it take to move to the next stage
A high-performing team knows what is pushing it forward what is holding it back and is willing and able to improve itself as it goes
Forming the right team
means finding the right mix of
skills experiences networks and
personalities that will help your
startup fly
D A V I D C L E A R W AT E R
BUILDING AN AWESOME TEAM
Team dynamics are the number one cause of startup meltdown Investing time and energy into your startup team is a great way to increase your chances of success
HOW DID YOU IDENTIFY WHAT SKILL SETS YOU NEEDED IN YOUR TEAM AND HOW DID YOU FIND THEM
In the early days the skill set was simply a very straightforward job title I was the person who was founding the company [Wipster] I knew about the video part of it as a user but not as a creator of products When I started looking for my initial co-founder I needed somebody who knew how to write code and build software so thatrsquos the simplicity it doesnrsquot have to be an extremely complicated process The process was going out and finding somebody who could create the software I started by explaining what the problem was seeing if they were interested in it see if they have the skill set to do it then asking them to build something to prove it
After that it was all about finding two other co-founders specifically in design and marketing and again because I was pretty inexperienced I didnrsquot know what part of marketing or what part of the design
The design side worked out well James [co-founder] is still smashing it out With that skill set itrsquos saying look we need someone who can make a brand and also design how a product should be used and work
Marketing was a bit harder because I was so vague I didnrsquot know what the aim was Whether it was digital marketing content marketing or whether it was more a brand marketing versus use case marketing In hindsight I couldrsquove defined it more and not had such a terrible time
HOW TO BUILD A STARTUP TEAM
R O L L O W E N L O C K W I P S T E R
We spoke to CEO amp Founder of Wipster Rollo Wenlock about what it takes to successfully build a startup team
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HOW EXTENSIVE WERE YOU WHEN DEFINING THE ROLES RESPONSIBILITIES OF EACH TEAM MEMBER AS YOUR TEAM CONTINUED TO GROW
At the start it was not very wide the first three people including myself (other than the marketing guy who left at the end of Lightning Lab) they were just very early on The next person we hired was the designers brother After that we started to define roles by writing job descriptions figuring out where the gaps in the company were and hiring people based on those gaps Now we are just like a big company writing very precise job descriptions and setting goals and milestones for employees
REGARDING THE SUCCESS OF YOUR BUSINESS HOW INTEGRAL WAS FINDING DEVELOPING THE RIGHT TEAM
100 OF THE SUCCESS IS THE TEAM
Having ideas is cool but being able to execute on them is the most important thing Having a team who can do stuff and do it day in day out and get that stuff delivered and in front of people optimised and iterated that is what success looks like Without the team there is no Wipster And of course developing the right team means getting the culture right and thatrsquos what I need to improve on getting the team focused on the same goal Therersquos always new ideas new directions to go in I would urge any new CEO to focus on that
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WHAT DID YOU FIND CHALLENGING ABOUT GROWING YOUR TEAM
We hired people to fulfil a vision not to expand what we were already doing That didnrsquot work and we lost about half the team Then we hired people to expand on what we were already doing and that worked Never hire for what you want to do only hire to expand what you are already doing
WHAT ADVICE WOULD YOU GIVE A SOLE-FOUNDER LOOKING TO BUILD A STARTUP TEAM
Well everything starts with one person so begin by getting one other person to join you do the smallest amount possible to feel the momentum If yoursquore waiting for other people to help you when you havenrsquot achieved anything there is much less chance of success Create a sense of movement do activities and see the outcomes if you become a very active person that produces results the people around you will be much more willing to join in
mdash WIPSTER CAME OUT OF LIGHTNING LAB 2013 AND LAUNCHED INTO THE NZ MARKETPLACE IN 2014
WIPSTER IS A BEAUTIFUL INTUITIVE VIDEO REVIEW AND APPROVAL PLATFORM BRINGING FRAME ACCURATE COMMENTING TO PRODUCERS CONTENT CREATORS AND MEDIA TEAMS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ALEX TURNBULL LESSONS LEARNED BUILDING A STARTUP TEAM
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
JORDAN RITTER THE SECRET TO BUILDING A WORLD-CLASS STARTUP TEAM
ldquoAwesome interview questions where your next super talented hire might come from building an advisory board and how to let someone go if it isnrsquot working outrdquo
RYAN ALLIS HOW TO BUILD YOUR FIRST STARTUP TEAM
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
ANDY BLAN FORMING A STARTUP TEAM (THE ESALE WAY)
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on what skill sets are most needed for the success of your business and make sure yoursquove got a mix of complementary skillsrdquo
LIGHTNING LAB TIPS ON HOW TO FIND A CO-FOUNDER
RESILIENCEWersquore vested in your well being so if you read one thing today
read this
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
Content
INDUSTRY INSIGHT_THE IMPORTANCE OF RESILIENCE AS A STARTUP FOUNDER
OTHER RESOURCES_RESILIENCE
FREE POSTER DOWNLOAD_RESILIENCE
Without the right awareness mental stability resilient capability and support the stories can be devastating
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
At the recent Global Accelerator Network summit Brett Holland (our Head of Acceleration) heard the story of a founder who had moved to the United States from India to take part in an accelerator He was charismatic driven and dedicated and his startup received funding after demo day From the outside everything looked perfect but within six months of Demo Day he had taken his own life
The reality is that this tragedy could have happened in any programme As part of the New Zealand startup ecosystem itrsquos important that we know the ways to recognise when someone is struggling and how we can support those who need it
We also need to be able to recognise when we are approaching burnout and how we can build a resilient mentality to maintain a startup
The startup space can
be a recipe for stress
with plenty of work to do
short deadlines and then
a team stakeholders
investors and customers
all relying on you to keep
things moving Startup life
can feel like yoursquore in a
high pressure cooker with
the heat turned up
THE IMPORTANCE OF RESILENCE AS A STARTUP FOUNDER
A S H L E Y C H U R C H
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Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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NT
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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NT
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
NT
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
OR
IN
SIG
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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IN
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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NT
OR
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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AR
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
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IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
S T E F A N K O R N CEO CREATIVE HQ
INTRO
With all of Creative HQrsquos initiatives people are at the heart of what we doWe are a team of passionate entrepreneurs who stimulate early stage business creation growth and connectivity with other players in the innovation ecosystem
We work with a range of entrepreneurs mentors and coaches to bring startup thinking to workplaces We help innovators rapidly validate and deliver new product and service conceptsWith this free resource we are looking to help you ignite and unleash your inner entrepreneurPeople are often asking us the nitty-gritty questions on how to actually initiate a startup ndash this Startup Guide acts as a resource pulling together relevant tips and tricks from the people and startups who have been there done thatEach section centres around different themes that early stage ventures struggle with building a kick-ass team validating your market raising funding and growth hacking to name a few Read them all or read the topics that apply to you right now
Content
MENTOR INSIGHT_DAVID CLEARWATER
STARTUP INSIGHT_HOW TO BUILD A STARTUP TEAM WIPSTER
OTHER RESOURCES_TEAM BUILDING
It pays off to develop the right team and culture for your business
Business life is full of highs and lows your team are with you all the way and are often the people you spend the most time with Hear from experienced people whorsquove built successful teams
BUILDING AN AWESOME TEAM
What does it take to successfully build a startup team
ME
NT
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If yoursquore a founder you have two jobs
FIRST you need to form the right team
SECOND you need to help the team to form right
Forming the right team means finding the right mix of skills experiences networks and personalities that will help your startup fly
Helping the team form right is about what happens once you have a bunch of humans trying to do something together Drama and excitement is a dead certainty Too much of either will kill the horse Your role is to guide the team to build trust that delivers high performance over time
How to do that
Fortunately for you new team formation follows a pretty predictable pattern Get your head around Tuckmanrsquos Forming gt Storming gt Norming gt Performing model
Ask yourself and your team what stage are we at
What will it take to move to the next stage
A high-performing team knows what is pushing it forward what is holding it back and is willing and able to improve itself as it goes
Forming the right team
means finding the right mix of
skills experiences networks and
personalities that will help your
startup fly
D A V I D C L E A R W AT E R
BUILDING AN AWESOME TEAM
Team dynamics are the number one cause of startup meltdown Investing time and energy into your startup team is a great way to increase your chances of success
HOW DID YOU IDENTIFY WHAT SKILL SETS YOU NEEDED IN YOUR TEAM AND HOW DID YOU FIND THEM
In the early days the skill set was simply a very straightforward job title I was the person who was founding the company [Wipster] I knew about the video part of it as a user but not as a creator of products When I started looking for my initial co-founder I needed somebody who knew how to write code and build software so thatrsquos the simplicity it doesnrsquot have to be an extremely complicated process The process was going out and finding somebody who could create the software I started by explaining what the problem was seeing if they were interested in it see if they have the skill set to do it then asking them to build something to prove it
After that it was all about finding two other co-founders specifically in design and marketing and again because I was pretty inexperienced I didnrsquot know what part of marketing or what part of the design
The design side worked out well James [co-founder] is still smashing it out With that skill set itrsquos saying look we need someone who can make a brand and also design how a product should be used and work
Marketing was a bit harder because I was so vague I didnrsquot know what the aim was Whether it was digital marketing content marketing or whether it was more a brand marketing versus use case marketing In hindsight I couldrsquove defined it more and not had such a terrible time
HOW TO BUILD A STARTUP TEAM
R O L L O W E N L O C K W I P S T E R
We spoke to CEO amp Founder of Wipster Rollo Wenlock about what it takes to successfully build a startup team
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HOW EXTENSIVE WERE YOU WHEN DEFINING THE ROLES RESPONSIBILITIES OF EACH TEAM MEMBER AS YOUR TEAM CONTINUED TO GROW
At the start it was not very wide the first three people including myself (other than the marketing guy who left at the end of Lightning Lab) they were just very early on The next person we hired was the designers brother After that we started to define roles by writing job descriptions figuring out where the gaps in the company were and hiring people based on those gaps Now we are just like a big company writing very precise job descriptions and setting goals and milestones for employees
REGARDING THE SUCCESS OF YOUR BUSINESS HOW INTEGRAL WAS FINDING DEVELOPING THE RIGHT TEAM
100 OF THE SUCCESS IS THE TEAM
Having ideas is cool but being able to execute on them is the most important thing Having a team who can do stuff and do it day in day out and get that stuff delivered and in front of people optimised and iterated that is what success looks like Without the team there is no Wipster And of course developing the right team means getting the culture right and thatrsquos what I need to improve on getting the team focused on the same goal Therersquos always new ideas new directions to go in I would urge any new CEO to focus on that
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WHAT DID YOU FIND CHALLENGING ABOUT GROWING YOUR TEAM
We hired people to fulfil a vision not to expand what we were already doing That didnrsquot work and we lost about half the team Then we hired people to expand on what we were already doing and that worked Never hire for what you want to do only hire to expand what you are already doing
WHAT ADVICE WOULD YOU GIVE A SOLE-FOUNDER LOOKING TO BUILD A STARTUP TEAM
Well everything starts with one person so begin by getting one other person to join you do the smallest amount possible to feel the momentum If yoursquore waiting for other people to help you when you havenrsquot achieved anything there is much less chance of success Create a sense of movement do activities and see the outcomes if you become a very active person that produces results the people around you will be much more willing to join in
mdash WIPSTER CAME OUT OF LIGHTNING LAB 2013 AND LAUNCHED INTO THE NZ MARKETPLACE IN 2014
WIPSTER IS A BEAUTIFUL INTUITIVE VIDEO REVIEW AND APPROVAL PLATFORM BRINGING FRAME ACCURATE COMMENTING TO PRODUCERS CONTENT CREATORS AND MEDIA TEAMS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ALEX TURNBULL LESSONS LEARNED BUILDING A STARTUP TEAM
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
JORDAN RITTER THE SECRET TO BUILDING A WORLD-CLASS STARTUP TEAM
ldquoAwesome interview questions where your next super talented hire might come from building an advisory board and how to let someone go if it isnrsquot working outrdquo
RYAN ALLIS HOW TO BUILD YOUR FIRST STARTUP TEAM
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
ANDY BLAN FORMING A STARTUP TEAM (THE ESALE WAY)
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on what skill sets are most needed for the success of your business and make sure yoursquove got a mix of complementary skillsrdquo
LIGHTNING LAB TIPS ON HOW TO FIND A CO-FOUNDER
RESILIENCEWersquore vested in your well being so if you read one thing today
read this
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
Content
INDUSTRY INSIGHT_THE IMPORTANCE OF RESILIENCE AS A STARTUP FOUNDER
OTHER RESOURCES_RESILIENCE
FREE POSTER DOWNLOAD_RESILIENCE
Without the right awareness mental stability resilient capability and support the stories can be devastating
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
At the recent Global Accelerator Network summit Brett Holland (our Head of Acceleration) heard the story of a founder who had moved to the United States from India to take part in an accelerator He was charismatic driven and dedicated and his startup received funding after demo day From the outside everything looked perfect but within six months of Demo Day he had taken his own life
The reality is that this tragedy could have happened in any programme As part of the New Zealand startup ecosystem itrsquos important that we know the ways to recognise when someone is struggling and how we can support those who need it
We also need to be able to recognise when we are approaching burnout and how we can build a resilient mentality to maintain a startup
The startup space can
be a recipe for stress
with plenty of work to do
short deadlines and then
a team stakeholders
investors and customers
all relying on you to keep
things moving Startup life
can feel like yoursquore in a
high pressure cooker with
the heat turned up
THE IMPORTANCE OF RESILENCE AS A STARTUP FOUNDER
A S H L E Y C H U R C H
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Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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NT
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
ME
NT
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IN
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HT
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
SIG
HT
D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
US
TR
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IGH
T
hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
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ME
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
Content
MENTOR INSIGHT_DAVID CLEARWATER
STARTUP INSIGHT_HOW TO BUILD A STARTUP TEAM WIPSTER
OTHER RESOURCES_TEAM BUILDING
It pays off to develop the right team and culture for your business
Business life is full of highs and lows your team are with you all the way and are often the people you spend the most time with Hear from experienced people whorsquove built successful teams
BUILDING AN AWESOME TEAM
What does it take to successfully build a startup team
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If yoursquore a founder you have two jobs
FIRST you need to form the right team
SECOND you need to help the team to form right
Forming the right team means finding the right mix of skills experiences networks and personalities that will help your startup fly
Helping the team form right is about what happens once you have a bunch of humans trying to do something together Drama and excitement is a dead certainty Too much of either will kill the horse Your role is to guide the team to build trust that delivers high performance over time
How to do that
Fortunately for you new team formation follows a pretty predictable pattern Get your head around Tuckmanrsquos Forming gt Storming gt Norming gt Performing model
Ask yourself and your team what stage are we at
What will it take to move to the next stage
A high-performing team knows what is pushing it forward what is holding it back and is willing and able to improve itself as it goes
Forming the right team
means finding the right mix of
skills experiences networks and
personalities that will help your
startup fly
D A V I D C L E A R W AT E R
BUILDING AN AWESOME TEAM
Team dynamics are the number one cause of startup meltdown Investing time and energy into your startup team is a great way to increase your chances of success
HOW DID YOU IDENTIFY WHAT SKILL SETS YOU NEEDED IN YOUR TEAM AND HOW DID YOU FIND THEM
In the early days the skill set was simply a very straightforward job title I was the person who was founding the company [Wipster] I knew about the video part of it as a user but not as a creator of products When I started looking for my initial co-founder I needed somebody who knew how to write code and build software so thatrsquos the simplicity it doesnrsquot have to be an extremely complicated process The process was going out and finding somebody who could create the software I started by explaining what the problem was seeing if they were interested in it see if they have the skill set to do it then asking them to build something to prove it
After that it was all about finding two other co-founders specifically in design and marketing and again because I was pretty inexperienced I didnrsquot know what part of marketing or what part of the design
The design side worked out well James [co-founder] is still smashing it out With that skill set itrsquos saying look we need someone who can make a brand and also design how a product should be used and work
Marketing was a bit harder because I was so vague I didnrsquot know what the aim was Whether it was digital marketing content marketing or whether it was more a brand marketing versus use case marketing In hindsight I couldrsquove defined it more and not had such a terrible time
HOW TO BUILD A STARTUP TEAM
R O L L O W E N L O C K W I P S T E R
We spoke to CEO amp Founder of Wipster Rollo Wenlock about what it takes to successfully build a startup team
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HOW EXTENSIVE WERE YOU WHEN DEFINING THE ROLES RESPONSIBILITIES OF EACH TEAM MEMBER AS YOUR TEAM CONTINUED TO GROW
At the start it was not very wide the first three people including myself (other than the marketing guy who left at the end of Lightning Lab) they were just very early on The next person we hired was the designers brother After that we started to define roles by writing job descriptions figuring out where the gaps in the company were and hiring people based on those gaps Now we are just like a big company writing very precise job descriptions and setting goals and milestones for employees
REGARDING THE SUCCESS OF YOUR BUSINESS HOW INTEGRAL WAS FINDING DEVELOPING THE RIGHT TEAM
100 OF THE SUCCESS IS THE TEAM
Having ideas is cool but being able to execute on them is the most important thing Having a team who can do stuff and do it day in day out and get that stuff delivered and in front of people optimised and iterated that is what success looks like Without the team there is no Wipster And of course developing the right team means getting the culture right and thatrsquos what I need to improve on getting the team focused on the same goal Therersquos always new ideas new directions to go in I would urge any new CEO to focus on that
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WHAT DID YOU FIND CHALLENGING ABOUT GROWING YOUR TEAM
We hired people to fulfil a vision not to expand what we were already doing That didnrsquot work and we lost about half the team Then we hired people to expand on what we were already doing and that worked Never hire for what you want to do only hire to expand what you are already doing
WHAT ADVICE WOULD YOU GIVE A SOLE-FOUNDER LOOKING TO BUILD A STARTUP TEAM
Well everything starts with one person so begin by getting one other person to join you do the smallest amount possible to feel the momentum If yoursquore waiting for other people to help you when you havenrsquot achieved anything there is much less chance of success Create a sense of movement do activities and see the outcomes if you become a very active person that produces results the people around you will be much more willing to join in
mdash WIPSTER CAME OUT OF LIGHTNING LAB 2013 AND LAUNCHED INTO THE NZ MARKETPLACE IN 2014
WIPSTER IS A BEAUTIFUL INTUITIVE VIDEO REVIEW AND APPROVAL PLATFORM BRINGING FRAME ACCURATE COMMENTING TO PRODUCERS CONTENT CREATORS AND MEDIA TEAMS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ALEX TURNBULL LESSONS LEARNED BUILDING A STARTUP TEAM
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
JORDAN RITTER THE SECRET TO BUILDING A WORLD-CLASS STARTUP TEAM
ldquoAwesome interview questions where your next super talented hire might come from building an advisory board and how to let someone go if it isnrsquot working outrdquo
RYAN ALLIS HOW TO BUILD YOUR FIRST STARTUP TEAM
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
ANDY BLAN FORMING A STARTUP TEAM (THE ESALE WAY)
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on what skill sets are most needed for the success of your business and make sure yoursquove got a mix of complementary skillsrdquo
LIGHTNING LAB TIPS ON HOW TO FIND A CO-FOUNDER
RESILIENCEWersquore vested in your well being so if you read one thing today
read this
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
Content
INDUSTRY INSIGHT_THE IMPORTANCE OF RESILIENCE AS A STARTUP FOUNDER
OTHER RESOURCES_RESILIENCE
FREE POSTER DOWNLOAD_RESILIENCE
Without the right awareness mental stability resilient capability and support the stories can be devastating
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
At the recent Global Accelerator Network summit Brett Holland (our Head of Acceleration) heard the story of a founder who had moved to the United States from India to take part in an accelerator He was charismatic driven and dedicated and his startup received funding after demo day From the outside everything looked perfect but within six months of Demo Day he had taken his own life
The reality is that this tragedy could have happened in any programme As part of the New Zealand startup ecosystem itrsquos important that we know the ways to recognise when someone is struggling and how we can support those who need it
We also need to be able to recognise when we are approaching burnout and how we can build a resilient mentality to maintain a startup
The startup space can
be a recipe for stress
with plenty of work to do
short deadlines and then
a team stakeholders
investors and customers
all relying on you to keep
things moving Startup life
can feel like yoursquore in a
high pressure cooker with
the heat turned up
THE IMPORTANCE OF RESILENCE AS A STARTUP FOUNDER
A S H L E Y C H U R C H
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Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
IND
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
NT
OR
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
ME
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
IND
US
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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If yoursquore a founder you have two jobs
FIRST you need to form the right team
SECOND you need to help the team to form right
Forming the right team means finding the right mix of skills experiences networks and personalities that will help your startup fly
Helping the team form right is about what happens once you have a bunch of humans trying to do something together Drama and excitement is a dead certainty Too much of either will kill the horse Your role is to guide the team to build trust that delivers high performance over time
How to do that
Fortunately for you new team formation follows a pretty predictable pattern Get your head around Tuckmanrsquos Forming gt Storming gt Norming gt Performing model
Ask yourself and your team what stage are we at
What will it take to move to the next stage
A high-performing team knows what is pushing it forward what is holding it back and is willing and able to improve itself as it goes
Forming the right team
means finding the right mix of
skills experiences networks and
personalities that will help your
startup fly
D A V I D C L E A R W AT E R
BUILDING AN AWESOME TEAM
Team dynamics are the number one cause of startup meltdown Investing time and energy into your startup team is a great way to increase your chances of success
HOW DID YOU IDENTIFY WHAT SKILL SETS YOU NEEDED IN YOUR TEAM AND HOW DID YOU FIND THEM
In the early days the skill set was simply a very straightforward job title I was the person who was founding the company [Wipster] I knew about the video part of it as a user but not as a creator of products When I started looking for my initial co-founder I needed somebody who knew how to write code and build software so thatrsquos the simplicity it doesnrsquot have to be an extremely complicated process The process was going out and finding somebody who could create the software I started by explaining what the problem was seeing if they were interested in it see if they have the skill set to do it then asking them to build something to prove it
After that it was all about finding two other co-founders specifically in design and marketing and again because I was pretty inexperienced I didnrsquot know what part of marketing or what part of the design
The design side worked out well James [co-founder] is still smashing it out With that skill set itrsquos saying look we need someone who can make a brand and also design how a product should be used and work
Marketing was a bit harder because I was so vague I didnrsquot know what the aim was Whether it was digital marketing content marketing or whether it was more a brand marketing versus use case marketing In hindsight I couldrsquove defined it more and not had such a terrible time
HOW TO BUILD A STARTUP TEAM
R O L L O W E N L O C K W I P S T E R
We spoke to CEO amp Founder of Wipster Rollo Wenlock about what it takes to successfully build a startup team
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HOW EXTENSIVE WERE YOU WHEN DEFINING THE ROLES RESPONSIBILITIES OF EACH TEAM MEMBER AS YOUR TEAM CONTINUED TO GROW
At the start it was not very wide the first three people including myself (other than the marketing guy who left at the end of Lightning Lab) they were just very early on The next person we hired was the designers brother After that we started to define roles by writing job descriptions figuring out where the gaps in the company were and hiring people based on those gaps Now we are just like a big company writing very precise job descriptions and setting goals and milestones for employees
REGARDING THE SUCCESS OF YOUR BUSINESS HOW INTEGRAL WAS FINDING DEVELOPING THE RIGHT TEAM
100 OF THE SUCCESS IS THE TEAM
Having ideas is cool but being able to execute on them is the most important thing Having a team who can do stuff and do it day in day out and get that stuff delivered and in front of people optimised and iterated that is what success looks like Without the team there is no Wipster And of course developing the right team means getting the culture right and thatrsquos what I need to improve on getting the team focused on the same goal Therersquos always new ideas new directions to go in I would urge any new CEO to focus on that
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WHAT DID YOU FIND CHALLENGING ABOUT GROWING YOUR TEAM
We hired people to fulfil a vision not to expand what we were already doing That didnrsquot work and we lost about half the team Then we hired people to expand on what we were already doing and that worked Never hire for what you want to do only hire to expand what you are already doing
WHAT ADVICE WOULD YOU GIVE A SOLE-FOUNDER LOOKING TO BUILD A STARTUP TEAM
Well everything starts with one person so begin by getting one other person to join you do the smallest amount possible to feel the momentum If yoursquore waiting for other people to help you when you havenrsquot achieved anything there is much less chance of success Create a sense of movement do activities and see the outcomes if you become a very active person that produces results the people around you will be much more willing to join in
mdash WIPSTER CAME OUT OF LIGHTNING LAB 2013 AND LAUNCHED INTO THE NZ MARKETPLACE IN 2014
WIPSTER IS A BEAUTIFUL INTUITIVE VIDEO REVIEW AND APPROVAL PLATFORM BRINGING FRAME ACCURATE COMMENTING TO PRODUCERS CONTENT CREATORS AND MEDIA TEAMS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ALEX TURNBULL LESSONS LEARNED BUILDING A STARTUP TEAM
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
JORDAN RITTER THE SECRET TO BUILDING A WORLD-CLASS STARTUP TEAM
ldquoAwesome interview questions where your next super talented hire might come from building an advisory board and how to let someone go if it isnrsquot working outrdquo
RYAN ALLIS HOW TO BUILD YOUR FIRST STARTUP TEAM
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
ANDY BLAN FORMING A STARTUP TEAM (THE ESALE WAY)
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on what skill sets are most needed for the success of your business and make sure yoursquove got a mix of complementary skillsrdquo
LIGHTNING LAB TIPS ON HOW TO FIND A CO-FOUNDER
RESILIENCEWersquore vested in your well being so if you read one thing today
read this
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
Content
INDUSTRY INSIGHT_THE IMPORTANCE OF RESILIENCE AS A STARTUP FOUNDER
OTHER RESOURCES_RESILIENCE
FREE POSTER DOWNLOAD_RESILIENCE
Without the right awareness mental stability resilient capability and support the stories can be devastating
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
At the recent Global Accelerator Network summit Brett Holland (our Head of Acceleration) heard the story of a founder who had moved to the United States from India to take part in an accelerator He was charismatic driven and dedicated and his startup received funding after demo day From the outside everything looked perfect but within six months of Demo Day he had taken his own life
The reality is that this tragedy could have happened in any programme As part of the New Zealand startup ecosystem itrsquos important that we know the ways to recognise when someone is struggling and how we can support those who need it
We also need to be able to recognise when we are approaching burnout and how we can build a resilient mentality to maintain a startup
The startup space can
be a recipe for stress
with plenty of work to do
short deadlines and then
a team stakeholders
investors and customers
all relying on you to keep
things moving Startup life
can feel like yoursquore in a
high pressure cooker with
the heat turned up
THE IMPORTANCE OF RESILENCE AS A STARTUP FOUNDER
A S H L E Y C H U R C H
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Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
IND
US
TR
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
NT
OR
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SIG
HT
On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
ST
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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NT
OR
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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NT
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IN
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HT
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
NT
OR
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HT
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
OR
IN
SIG
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
ME
NT
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HT
It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
OR
IN
SIG
HT
a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
ST
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
ST
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T
a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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AR
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
ST
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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IGH
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ST
AR
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
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US
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IGH
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
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HT
D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
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OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
HOW DID YOU IDENTIFY WHAT SKILL SETS YOU NEEDED IN YOUR TEAM AND HOW DID YOU FIND THEM
In the early days the skill set was simply a very straightforward job title I was the person who was founding the company [Wipster] I knew about the video part of it as a user but not as a creator of products When I started looking for my initial co-founder I needed somebody who knew how to write code and build software so thatrsquos the simplicity it doesnrsquot have to be an extremely complicated process The process was going out and finding somebody who could create the software I started by explaining what the problem was seeing if they were interested in it see if they have the skill set to do it then asking them to build something to prove it
After that it was all about finding two other co-founders specifically in design and marketing and again because I was pretty inexperienced I didnrsquot know what part of marketing or what part of the design
The design side worked out well James [co-founder] is still smashing it out With that skill set itrsquos saying look we need someone who can make a brand and also design how a product should be used and work
Marketing was a bit harder because I was so vague I didnrsquot know what the aim was Whether it was digital marketing content marketing or whether it was more a brand marketing versus use case marketing In hindsight I couldrsquove defined it more and not had such a terrible time
HOW TO BUILD A STARTUP TEAM
R O L L O W E N L O C K W I P S T E R
We spoke to CEO amp Founder of Wipster Rollo Wenlock about what it takes to successfully build a startup team
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HOW EXTENSIVE WERE YOU WHEN DEFINING THE ROLES RESPONSIBILITIES OF EACH TEAM MEMBER AS YOUR TEAM CONTINUED TO GROW
At the start it was not very wide the first three people including myself (other than the marketing guy who left at the end of Lightning Lab) they were just very early on The next person we hired was the designers brother After that we started to define roles by writing job descriptions figuring out where the gaps in the company were and hiring people based on those gaps Now we are just like a big company writing very precise job descriptions and setting goals and milestones for employees
REGARDING THE SUCCESS OF YOUR BUSINESS HOW INTEGRAL WAS FINDING DEVELOPING THE RIGHT TEAM
100 OF THE SUCCESS IS THE TEAM
Having ideas is cool but being able to execute on them is the most important thing Having a team who can do stuff and do it day in day out and get that stuff delivered and in front of people optimised and iterated that is what success looks like Without the team there is no Wipster And of course developing the right team means getting the culture right and thatrsquos what I need to improve on getting the team focused on the same goal Therersquos always new ideas new directions to go in I would urge any new CEO to focus on that
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WHAT DID YOU FIND CHALLENGING ABOUT GROWING YOUR TEAM
We hired people to fulfil a vision not to expand what we were already doing That didnrsquot work and we lost about half the team Then we hired people to expand on what we were already doing and that worked Never hire for what you want to do only hire to expand what you are already doing
WHAT ADVICE WOULD YOU GIVE A SOLE-FOUNDER LOOKING TO BUILD A STARTUP TEAM
Well everything starts with one person so begin by getting one other person to join you do the smallest amount possible to feel the momentum If yoursquore waiting for other people to help you when you havenrsquot achieved anything there is much less chance of success Create a sense of movement do activities and see the outcomes if you become a very active person that produces results the people around you will be much more willing to join in
mdash WIPSTER CAME OUT OF LIGHTNING LAB 2013 AND LAUNCHED INTO THE NZ MARKETPLACE IN 2014
WIPSTER IS A BEAUTIFUL INTUITIVE VIDEO REVIEW AND APPROVAL PLATFORM BRINGING FRAME ACCURATE COMMENTING TO PRODUCERS CONTENT CREATORS AND MEDIA TEAMS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ALEX TURNBULL LESSONS LEARNED BUILDING A STARTUP TEAM
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
JORDAN RITTER THE SECRET TO BUILDING A WORLD-CLASS STARTUP TEAM
ldquoAwesome interview questions where your next super talented hire might come from building an advisory board and how to let someone go if it isnrsquot working outrdquo
RYAN ALLIS HOW TO BUILD YOUR FIRST STARTUP TEAM
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
ANDY BLAN FORMING A STARTUP TEAM (THE ESALE WAY)
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on what skill sets are most needed for the success of your business and make sure yoursquove got a mix of complementary skillsrdquo
LIGHTNING LAB TIPS ON HOW TO FIND A CO-FOUNDER
RESILIENCEWersquore vested in your well being so if you read one thing today
read this
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
Content
INDUSTRY INSIGHT_THE IMPORTANCE OF RESILIENCE AS A STARTUP FOUNDER
OTHER RESOURCES_RESILIENCE
FREE POSTER DOWNLOAD_RESILIENCE
Without the right awareness mental stability resilient capability and support the stories can be devastating
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
At the recent Global Accelerator Network summit Brett Holland (our Head of Acceleration) heard the story of a founder who had moved to the United States from India to take part in an accelerator He was charismatic driven and dedicated and his startup received funding after demo day From the outside everything looked perfect but within six months of Demo Day he had taken his own life
The reality is that this tragedy could have happened in any programme As part of the New Zealand startup ecosystem itrsquos important that we know the ways to recognise when someone is struggling and how we can support those who need it
We also need to be able to recognise when we are approaching burnout and how we can build a resilient mentality to maintain a startup
The startup space can
be a recipe for stress
with plenty of work to do
short deadlines and then
a team stakeholders
investors and customers
all relying on you to keep
things moving Startup life
can feel like yoursquore in a
high pressure cooker with
the heat turned up
THE IMPORTANCE OF RESILENCE AS A STARTUP FOUNDER
A S H L E Y C H U R C H
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Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
IND
US
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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NT
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
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IN
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
ME
NT
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HT
It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
OR
IN
SIG
HT
a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
ME
NT
OR
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
ST
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
Y I
NS
IGH
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IND
US
TR
Y I
NS
IGH
T
mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
HOW EXTENSIVE WERE YOU WHEN DEFINING THE ROLES RESPONSIBILITIES OF EACH TEAM MEMBER AS YOUR TEAM CONTINUED TO GROW
At the start it was not very wide the first three people including myself (other than the marketing guy who left at the end of Lightning Lab) they were just very early on The next person we hired was the designers brother After that we started to define roles by writing job descriptions figuring out where the gaps in the company were and hiring people based on those gaps Now we are just like a big company writing very precise job descriptions and setting goals and milestones for employees
REGARDING THE SUCCESS OF YOUR BUSINESS HOW INTEGRAL WAS FINDING DEVELOPING THE RIGHT TEAM
100 OF THE SUCCESS IS THE TEAM
Having ideas is cool but being able to execute on them is the most important thing Having a team who can do stuff and do it day in day out and get that stuff delivered and in front of people optimised and iterated that is what success looks like Without the team there is no Wipster And of course developing the right team means getting the culture right and thatrsquos what I need to improve on getting the team focused on the same goal Therersquos always new ideas new directions to go in I would urge any new CEO to focus on that
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WHAT DID YOU FIND CHALLENGING ABOUT GROWING YOUR TEAM
We hired people to fulfil a vision not to expand what we were already doing That didnrsquot work and we lost about half the team Then we hired people to expand on what we were already doing and that worked Never hire for what you want to do only hire to expand what you are already doing
WHAT ADVICE WOULD YOU GIVE A SOLE-FOUNDER LOOKING TO BUILD A STARTUP TEAM
Well everything starts with one person so begin by getting one other person to join you do the smallest amount possible to feel the momentum If yoursquore waiting for other people to help you when you havenrsquot achieved anything there is much less chance of success Create a sense of movement do activities and see the outcomes if you become a very active person that produces results the people around you will be much more willing to join in
mdash WIPSTER CAME OUT OF LIGHTNING LAB 2013 AND LAUNCHED INTO THE NZ MARKETPLACE IN 2014
WIPSTER IS A BEAUTIFUL INTUITIVE VIDEO REVIEW AND APPROVAL PLATFORM BRINGING FRAME ACCURATE COMMENTING TO PRODUCERS CONTENT CREATORS AND MEDIA TEAMS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ALEX TURNBULL LESSONS LEARNED BUILDING A STARTUP TEAM
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
JORDAN RITTER THE SECRET TO BUILDING A WORLD-CLASS STARTUP TEAM
ldquoAwesome interview questions where your next super talented hire might come from building an advisory board and how to let someone go if it isnrsquot working outrdquo
RYAN ALLIS HOW TO BUILD YOUR FIRST STARTUP TEAM
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
ANDY BLAN FORMING A STARTUP TEAM (THE ESALE WAY)
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on what skill sets are most needed for the success of your business and make sure yoursquove got a mix of complementary skillsrdquo
LIGHTNING LAB TIPS ON HOW TO FIND A CO-FOUNDER
RESILIENCEWersquore vested in your well being so if you read one thing today
read this
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
Content
INDUSTRY INSIGHT_THE IMPORTANCE OF RESILIENCE AS A STARTUP FOUNDER
OTHER RESOURCES_RESILIENCE
FREE POSTER DOWNLOAD_RESILIENCE
Without the right awareness mental stability resilient capability and support the stories can be devastating
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
At the recent Global Accelerator Network summit Brett Holland (our Head of Acceleration) heard the story of a founder who had moved to the United States from India to take part in an accelerator He was charismatic driven and dedicated and his startup received funding after demo day From the outside everything looked perfect but within six months of Demo Day he had taken his own life
The reality is that this tragedy could have happened in any programme As part of the New Zealand startup ecosystem itrsquos important that we know the ways to recognise when someone is struggling and how we can support those who need it
We also need to be able to recognise when we are approaching burnout and how we can build a resilient mentality to maintain a startup
The startup space can
be a recipe for stress
with plenty of work to do
short deadlines and then
a team stakeholders
investors and customers
all relying on you to keep
things moving Startup life
can feel like yoursquore in a
high pressure cooker with
the heat turned up
THE IMPORTANCE OF RESILENCE AS A STARTUP FOUNDER
A S H L E Y C H U R C H
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Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
IND
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
NT
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
ME
NT
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
NT
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
OR
IN
SIG
HT
personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
ST
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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IN
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HT
a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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RY
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HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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AR
TU
P I
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IGH
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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AR
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ALEX TURNBULL LESSONS LEARNED BUILDING A STARTUP TEAM
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
JORDAN RITTER THE SECRET TO BUILDING A WORLD-CLASS STARTUP TEAM
ldquoAwesome interview questions where your next super talented hire might come from building an advisory board and how to let someone go if it isnrsquot working outrdquo
RYAN ALLIS HOW TO BUILD YOUR FIRST STARTUP TEAM
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
ANDY BLAN FORMING A STARTUP TEAM (THE ESALE WAY)
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on what skill sets are most needed for the success of your business and make sure yoursquove got a mix of complementary skillsrdquo
LIGHTNING LAB TIPS ON HOW TO FIND A CO-FOUNDER
RESILIENCEWersquore vested in your well being so if you read one thing today
read this
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
Content
INDUSTRY INSIGHT_THE IMPORTANCE OF RESILIENCE AS A STARTUP FOUNDER
OTHER RESOURCES_RESILIENCE
FREE POSTER DOWNLOAD_RESILIENCE
Without the right awareness mental stability resilient capability and support the stories can be devastating
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
At the recent Global Accelerator Network summit Brett Holland (our Head of Acceleration) heard the story of a founder who had moved to the United States from India to take part in an accelerator He was charismatic driven and dedicated and his startup received funding after demo day From the outside everything looked perfect but within six months of Demo Day he had taken his own life
The reality is that this tragedy could have happened in any programme As part of the New Zealand startup ecosystem itrsquos important that we know the ways to recognise when someone is struggling and how we can support those who need it
We also need to be able to recognise when we are approaching burnout and how we can build a resilient mentality to maintain a startup
The startup space can
be a recipe for stress
with plenty of work to do
short deadlines and then
a team stakeholders
investors and customers
all relying on you to keep
things moving Startup life
can feel like yoursquore in a
high pressure cooker with
the heat turned up
THE IMPORTANCE OF RESILENCE AS A STARTUP FOUNDER
A S H L E Y C H U R C H
IND
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Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
IND
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
NT
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
ST
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
ME
NT
OR
IN
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
ME
NT
OR
IN
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HT
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
NT
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
OR
IN
SIG
HT
personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
ST
AR
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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IN
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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NT
OR
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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AR
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
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IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
RESILIENCEWersquore vested in your well being so if you read one thing today
read this
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
Content
INDUSTRY INSIGHT_THE IMPORTANCE OF RESILIENCE AS A STARTUP FOUNDER
OTHER RESOURCES_RESILIENCE
FREE POSTER DOWNLOAD_RESILIENCE
Without the right awareness mental stability resilient capability and support the stories can be devastating
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
At the recent Global Accelerator Network summit Brett Holland (our Head of Acceleration) heard the story of a founder who had moved to the United States from India to take part in an accelerator He was charismatic driven and dedicated and his startup received funding after demo day From the outside everything looked perfect but within six months of Demo Day he had taken his own life
The reality is that this tragedy could have happened in any programme As part of the New Zealand startup ecosystem itrsquos important that we know the ways to recognise when someone is struggling and how we can support those who need it
We also need to be able to recognise when we are approaching burnout and how we can build a resilient mentality to maintain a startup
The startup space can
be a recipe for stress
with plenty of work to do
short deadlines and then
a team stakeholders
investors and customers
all relying on you to keep
things moving Startup life
can feel like yoursquore in a
high pressure cooker with
the heat turned up
THE IMPORTANCE OF RESILENCE AS A STARTUP FOUNDER
A S H L E Y C H U R C H
IND
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Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
IND
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
ST
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
ME
NT
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
OR
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
ST
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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IN
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
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IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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IN
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
Without the right awareness mental stability resilient capability and support the stories can be devastating
The success of a founder team or business hinges on the ability to recognise the mental health illness signs and build resilience through experiences
At the recent Global Accelerator Network summit Brett Holland (our Head of Acceleration) heard the story of a founder who had moved to the United States from India to take part in an accelerator He was charismatic driven and dedicated and his startup received funding after demo day From the outside everything looked perfect but within six months of Demo Day he had taken his own life
The reality is that this tragedy could have happened in any programme As part of the New Zealand startup ecosystem itrsquos important that we know the ways to recognise when someone is struggling and how we can support those who need it
We also need to be able to recognise when we are approaching burnout and how we can build a resilient mentality to maintain a startup
The startup space can
be a recipe for stress
with plenty of work to do
short deadlines and then
a team stakeholders
investors and customers
all relying on you to keep
things moving Startup life
can feel like yoursquore in a
high pressure cooker with
the heat turned up
THE IMPORTANCE OF RESILENCE AS A STARTUP FOUNDER
A S H L E Y C H U R C H
IND
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Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
IND
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
NT
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
ME
NT
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
NT
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
OR
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
ST
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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IN
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
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IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
Here are a few pointers that wersquove picked up along the way and remember if you need help with any of this donrsquot hesitate to get in touch
BUILD AN OPEN CULTURE ACCEPT EACH OTHERrsquoS DIFFERENCES
Be open to not only differences but weaknesses and vulnerabilities too Itrsquos your responsibility to build a culture where people can feel comfortable Where people are encouraged to open up with their own vulnerabilities and are able to ask for help when they need it Ask for help from your mentors investors other founders and entrepreneurs Pair up with someone whorsquos done it before you ndash find the tips and tricks that work best for you
BE TRANSPARENT AND HONEST IN BUSINESS ALWAYS
Transparency builds trust bringing everyone closer together You know what playing field yoursquore on Access to more information helps employees make educated decisions and leadership doesnrsquot have the opportunity to deny any real issues
We need to look at our startup culture and shift the ldquobadge of honourrdquo from ldquobe tough work hardrdquo to being ldquotransparent and balancedrdquo Itrsquos not a badge of honour to hold everything in and bottle it up The aim is to create a culture where it is a badge of honour to recognise you need some guidance ask for help and accept it when itrsquos offered The organisation has to be able to show support when itrsquos needed in the appropriate ways Leadership need to be happy to slow down with you maybe even take on something for you This mentality needs to be built into the culture from grassroots up
REGULARLY CHECK IN WITH YOUR TEAM
A company called KeenIO creates a culture of openness by having weekly emotional check ins
Very similar to a normal standup meeting where you might share what you are working on that day or week but in this case the whole team comes together and talks about where they are at emotionally
The emotional standup serves as one of the key factors for building a resilient and open work culture Different stressors can bring people together help us understand where one another are at and create
a higher awareness of those around us Our personal lives affect our professional lives we should strive to relate and support one another on a deeper level Do some research and choose a method that best suits your team dynamic team preferences and create appropriate guidelines to go along with the process
GET OUT OF THE BUILDING TAKE REGULAR BREAKS
This is often something yoursquoll hear when an early stage venture is validating their target customers or market but it also applies to being mentally balanced Make it part of your business to get outside and get active Instead of going to for a coffee why not try a walking meeting Bring a balance of work and play into the startup Find your rhythm if yoursquore more productive in the evenings then start later in the day or vice versa Figure out what works best for you and allow your team the freedom to do the same This will allow you to create space and have higher levels of performance
BRING IN A MENTAL HEALTH AWARENESS EXPERT
Bring in experts to train your staff leadership teams and programme directors for the signs of mental health illnesses and ways in which you can support those who may be suffering Make emotional check ins and emotional fitness an integral part of your programme curriculum or your business practice
The key to being a great founder is to be balanced We want to create a resilient culture around our own startup community and founders and we can start right now by talking about this issue more and creating an open nonjudgmental culture around it A startup is a marathon not a sprint so be prepared for the long road
IND
US
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OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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NT
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
OR
IN
SIG
HT
personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
ST
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
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NT
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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NT
OR
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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AR
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
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IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCES
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in sixrdquo
AARON BELL HOW TO BUILD A RESILIENT STARTUP CULTURE
ldquoIf people on a team share the same set of beliefs and valuesrdquo
TRISTAN POLLOCK RESILIENCE THE 1 TRAIT OF STARTUP FOUNDERS
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
BEN HOROWITZ THE HARD THING ABOUT HARD THINGS (A SUMMARY)
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has a chance of morphing into a good ideardquo
TIM KREIDER THE lsquoBUSYrsquo TRAP
ldquoYou canrsquot survive as an entrepreneur without resilience because you are going to fail at least once maybe multiple times rdquo
MARTIN ZWILLING HOW TO BUILD YOUR RESILIENCE TO BE AN ENTREPRENEUR
ldquoWhy Because transparency builds trust which brings everyone closer togetherrdquo
AARON BELL 5 TIPS FOR BUILDING TRANSPARENCY INTO YOUR COMPANY CULTURE
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
NT
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
ST
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
ST
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
Y I
NS
IGH
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IND
US
TR
Y I
NS
IGH
T
mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
FREE POSTER
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
ME
NT
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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IN
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HT
a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
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IND
US
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IGH
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
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HT
D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
MARKET VALIDATIONFully understanding your customers
can make or break your business
Every customer counts when validating your market
Are you prepared to move with the flow of your startup idea create connections cold call and build rapport
Take your market validation to the next level
Content
MENTOR INSIGHT_AMANDA SANTOS
STARTUP INSIGHT_MARKET VALIDATION FROM AN EARLY STAGE STARTUP HIVE
OTHER RESOURCES_MARKET VALIDATION
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
NT
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
OR
IN
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HT
a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
ME
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
IND
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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On the other hand the 2 degrees of separation means it could not be easier to seek out your target market to talk to which is crucial Talking to the right person is just as important as asking the right questions when it comes to collecting valuable insights that will better your offering
With this in mind think hard about who your early adopter is ndash who is actually going to buy your product and who is your lsquooptimalrsquo customer An easy trap to fall into is just talking to your inner circle of friends and family ndash this will leave you with biased or just plain wrong customer data and can be very misleading time wasting and skew your data severely
In order to get unbiased useful data from real potential customers ask about their needs donrsquot ever pitch first and donrsquot ever say what yoursquore selling (a hard one for most startups to grasp initially as wersquore constantly told to talk about what wersquore doing) As soon as you give away what you are doing you are product validating rather than market validating which results in biased data
Getting comfortable with cold calling selling and market validation is all about going out and doing it yourself over and over again Building rapport and connecting with someone is the crux of it all repeat peoplersquos names look them in the eye if itrsquos a face to face meeting get them talking as fast as possible talk to them about their business and what you can do for them If you can cold call connect with the customer and build rapport you will have set yourself up for success
New Zealand has its own
unique pros and cons when
it comes to market validation
We have a tendency to be very
polite customers we say we
love a product and will answer
any questions but this doesnrsquot
necessarily translate into direct
sales This means you will have
to be extra scrupulous around
capturing meaningful feedback
A M A N D A S A N T O S
MARKET VALIDATION
Market Validation is governed by one defining ruleNot understanding your customer equals no sales equals no revenue equals no business
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
OR
IN
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HT
a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
ME
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
HOW DOES NEARBY WORK AND WHAT ARE YOU TRYING TO ACHIEVE
Nearby started after I (Vanessa) founded and sold two businesses in Whangarei I was a full-time stay-at-home mum at the time and needed a lot of on-demand help for those businesses to keep them going so I created a Facebook group called Odd Jobs The group started my journey in building up a network of people that could do this work for me and it spiralled from there
I had a bit of a light-bulb moment around wanting to connect the people like myself who have no time but have the money to pay for services with people who have lots of time but next to no money Wersquore providing the tools to financial independence for people and we think more time or more money equals more freedom on both ends of the spectrum Wersquore providing on demand solutions and wersquore nearby
The main values and aims of Nearby are helping people to help themselves a sense of honest community engagement and showing people to find the tools to be financially better off We want to think differently about how we solve this issue because so many have tried and failed and be real about what it is wersquore actually trying to achieve
MARKET VALIDATION FROM AN EARLY STAGE STARTUP
V A N E S S A W I L S O N H I V E
We spoke to CEO amp Founder of Hive (previously Nearby) Vanessa about what it takes to successfully validate your market
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WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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IN
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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TU
P I
NS
IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
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IGH
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
WHAT MARKET IS NEARBY TARGETING AND HOW DID YOU FIND THIS OUT
Initially we started with identifying the unemployed as our target market students stay-at-home parents predominantly Then we identified the target market on the other side of the platform ndash time-poor working professionals that need some on-demand help at work or around the home
It was bringing those two markets together and finding out who was the most motivated that gave us the most insight We did this using the Odd Jobs Facebook group and kept a close eye on which customers were really engaged with it to get a good feel for who the target market on both sides of our platform were
HAVE YOU GOT ANY ADVICE FOR GOOD WAYS TO VALIDATE YOUR MARKET AND FIND WARM SALES LEADS IF YOU HAVE NEVER DONE IT BEFORE
We were fortunate enough to have created a group of early adopters that are looking for the service we are providing so we had access to the right customers that would use our product from the get go Our early adopters were always the most active on Facebook Having access to a pool of people that you donrsquot know is really useful at the early stages of a startup you can obtain accurate and unbiased data It was really just
ST
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engaging with these customers in an authentic way and drilling down to their motivations through a series of conversational questions asking a lot of lsquowhyrsquo questions
Once we spoke to a couple of our early adopters we were able to see we had an assumption that our target market was the unemployed but we were able to make the distinction that itrsquos really the motivated unemployed customer wersquore targeting for example the motivated customer might have a family to support and donrsquot want to rely on government This was a key distinction for us in our customer discovery process
We also found that talking to the customers that donrsquot have this pain are some of the most useful conversations that wersquove had so donrsquot rule out customers who have cracked the solution to your problem Every customer is very valuable for getting your idea further along in the process and validating it
HAVE YOU PICKED UP ANY TRICKS FOR TESTING ASSUMPTIONS WITHOUT INFLUENCING CUSTOMERS ANSWERS
Keep your questions as neutral as possible It is really easy to fall into a positive or negative fuelled question so keep an eye on the wording you use For example I asked a student ldquoWhatrsquos the worst part about working and studying at the same timerdquo
mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
ME
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
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IND
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IGH
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
SIG
HT
D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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RY
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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ME
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OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
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IGH
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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NT
OR
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WHAT ADVICE COULD YOU PASS ON TO OTHER STARTUPS FOR GETTING ACCESS TO THE RIGHT CUSTOMERS WHAT PREPARATION DO YOU HAVE TO DO TO GET APPROPRIATE AND USEFUL DATA CUSTOMER FEEDBACK
1 Have set plans in place for what you are trying to discover about your customer
2 Have a very clear idea of what it is you are trying to achieve with your customers and keep this goal in your forefront ndash look at how customers engage and interact with your MVP to discover and validate your assumptions
3 Learn how to cold call
4 Create a pool of customersearly adopters and use them to test your assumptions ndash both through talking to them directly as well as observing how they are using your service if possible For example with your Facebook group one of our assumptions was that donrsquot customers like having to write out lots of information We tested and validated this and used it to inform the customer journey process by not having any big forms to fill in anywhere in the process
5 Donrsquot lead with the nuts and bolts of what the idea is (or talk about this at all) be broad and get them to talk instead Ask relevant simple questions to prompt them to give you as much detail as possible about their processes behaviours and needs
6 Always ask if they know someone else who needs the solution yoursquore providing
hellip And this question is loaded straight away giving you a negative spin or biased data Keep the conversation going with a customer by keeping the focus on what theyrsquore doing The 5 whys is a useful model to base the conversation on you get to the root of the pain for the customer and are able to help fix the problem For example ldquoTell me more thatrsquos interesting why does that work Why doesnrsquot that workrdquo And so on
The core of our business is around the value that wersquore providing people and encouraging them to help themselves and this translates into our lsquosalesrsquo conversations not sounding very lsquosalesrsquoy at all We speak to them like theyrsquore friends from the beginning and itrsquos very easy to build rapport this way We ask lots of step-by-step questions to map out the customer journey and how they solve the problem themselves which personalises it for each person Itrsquos understanding what the problem is for the individual and getting on a level with them where they know you can help fix their problem and that yoursquore there to do just that
When we first started out we had the wrong idea about what our customer discovery cold calls were about When we called someone up and asked if they had the problem we are trying to solve and they responded with no we would end the conversation there In retrospect we shouldrsquove been focusing on these customers giving them a lot of attention because they already solved our problem These customers have the solution so it is important to find out why or how they managed to do it ndash donrsquot be afraid to call these customers back from the perspective of ldquowersquod like to help our customer achieve what yoursquove achieved and want to get a better idea about how you do thatrdquo
Most are super keen to share how theyrsquove done it
MARKET VALIDATION FROM AN EARLY STAGE STARTUP ndash VANESSA WILSON HIVE
C O N T I N U E D hellip
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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NT
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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mdash HIVE CAME OUT OF LIGHTNING LAB XX IN 2016
HIVE IS A SOCIAL MARKETPLACE TO DISCOVER ODD JOBS PEOPLE AND THE SERVICES YOU NEED FROM INDIVIDUALS NEARBY
WHATrsquoS THE SINGLE MOST USEFUL PIECE OF ADVICE THAT YOUrsquoVE RECEIVED REGARDING VALIDATING YOUR PRODUCT OR SERVICE
Be prepared and ready to move with the flow of your startup idea be really honest with yourself about what you are trying to validate and be prepared that the outcome may be very different to what you were expecting it to be
Really question why you are doing something
Ask yourself am I holding on to this because I canrsquot let the idea gomorphchange or because I think this is valid information
Be honest with yourself when distinguishing between your gut feeling and data yoursquore collecting ndash itrsquos a balancing act between your gut instinct and what is actually working
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
ME
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
ST
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
ST
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
ST
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
Y I
NS
IGH
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IND
US
TR
Y I
NS
IGH
T
mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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C O N T I N U E D hellip
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCESldquoItrsquos easy to assume that most people will need your service or product But rather than make assumptions reach out to groups of potential customers to get a more realistic picture of your audience and narrow your marketing effortsrdquo
ALINA DIZIK 10 QUESTIONS TO ASK BEFORE DETERMINING YOUR TARGET MARKET
ldquoWhere you are as a business determines where you input into the Customer Development process The earlier you start the better since you are less likely to waste time and moneyrdquo
BRANT COOPER WHAT IS CUSTOMER DEVELOPMENT CO-AUTHOR OF THE LEAN ENTREPRENEUR
ldquoWhat if you could ask 1000 potential customers about your product new feature or idea Would that help you make better decisions create content or collateral or gain important insightsrdquo
BRENT CHUDOBA VALIDATING YOUR DECISIONS USING SURVEYS VP OF SURVEY MONKEY
ldquoValidation will help you avoid the most common problem of them all spending time and money building something nobody wantsrdquo
KUNAL PUNJABI VALIDATE OR DIE USING VALIDATION TO BUILD THE RIGHT PRODUCT
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
NT
OR
IN
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HT
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
OR
IN
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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NT
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
OR
IN
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HT
a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
ME
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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AR
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
ST
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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NT
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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RY
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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T
hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
SIG
HT
ME
NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
TU
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T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
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IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
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P I
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IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
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IGH
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
ldquoA business model is never complete and therefore product-market fit will continually evolverdquo
NATHAN KINCH THE BATTLE TO SUSTAIN PRODUCT-MARKET FIT
ldquoCustomer knowledge both quantitative and quantitative informed product development and that research became a key part of AdSensersquos successrdquo
TOMAZ TUNGUZ VC AT REDPOINT
8 CUSTOMER DISCOVERY QUESTIONS TO VALIDATE PRODUCT MARKET FIT FOR YOUR STARTUP
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
ST
AR
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
ST
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
ME
NT
OR
IN
SIG
HT
It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
OR
IN
SIG
HT
a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
ME
NT
OR
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
ST
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
Y I
NS
IGH
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IND
US
TR
Y I
NS
IGH
T
mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
SOCIAL ENTERPRISEFeel need to improve human amp environmental well-being
So do we Thatrsquos why we wrote this
The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Start here
Content
MENTOR INSIGHT_CHRIS OrsquoNEILL
STARTUP INSIGHT_A STARTUP WITH A SOCIAL CONSCIOUS CONSCIOUS CONSUMERS
OTHER RESOURCES_SOCIAL ENTERPRISE
ME
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
ME
NT
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
OR
IN
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HT
a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
AR
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
ST
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
IND
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
US
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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The journey for the social entrepreneur is all about articulating the problem the solution and navigating the most effective path to solving that problem
Tell a clear story about your social enterprise
Running an effective social enterprise is about defining the purpose of your organisation The purpose behind what you are doing is what makes your idea compelling If people can identify with your purpose it invigorates their desire to help to make change and get passionately on board most often in ways other Saas (software as a service) products cannot People are interested in the why rather than the how or the what they want to the know the solution is effective but they care more about solving the problem Engage supporters in both the problem and the solution and show people how your organisation is solving the problem
Investors invest on impact not business model
Throughout the process link up with investors that have similar values to your company Speaking to investors they are interested in specific types of social impact a few examples education health energy Wersquove found that investors who would invest in energy may not invest in health even if both projects were of merit they werenrsquot specific passions to the individual Often gaining investment for your social enterprise is driven by a
You may have a great
idea or a great problem to
solve but if you donrsquot have a
viable business you have a
charity not a social enterprise
The need to improve human
or environmental well-being
usually underpin most social
enterprises and get social
entrepreneurs out of bed
every morning
SOCIAL ENTERPRISE
Key ingredientsYou need to have a viable business model be able to tell a compelling story and understand your impact model
C H R I S O rsquo N E I L L
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
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IGH
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
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HT
D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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personrsquos values Commercial returns generally have to be there but if an investor is stacking two deals against each other theyrsquore looking for one that they connect with emotionally
Success factors
Very similar to other startups the top 3 factors that make social enterprise most effective are the team the business model and the impact model
How do you measure impact Look at your problem and look at it 4 different ways to help define and measure it ask yourself
What is the problem Whatrsquos the activity I am undertaking to solve that problem What are the immediate outputs And what are the outcomes The answers from the impact model will help you articulate a compelling story to anybody whorsquos going to support or invest in your project
We see a massive range of people starting up social enterprises from individuals who are in the heart of a problem to people who observe a problem from outside or even people who work in organisations and are paid to solve the problem There isnrsquot any one way you could look at these people but it often comes down to the passion they have for the problem and seeing a solution come to life
SOCIAL ENTERPRISE ndash CHRIS OrsquoNEILL
C O N T I N U E D hellip
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
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NT
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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NT
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
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Y I
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IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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We sat down with co-founder Ben Gleisner and talked about Conscious Consumersrsquo mission to create a global marketplace for sustainable products and services and develop innovative tools and services to connect participants in this market He has a strong passion for wanting to bring about positive social and environmental change and he started right here in New Zealand
CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR SOCIAL ENTERPRISE JOURNEY WITH CONSCIOUS CONSUMERS TO DATE
We first launched the cafeacute guide in 2010 ndash with 100 voluntary time Since then Conscious Consumers has grown wings and become one of the most successful kiwi social enterprises Over $500000 of grants was secured in the first 4 years to support a team of up to 8-10 staff We have accredited over 400 businesses in six New Zealand regions and attracted over 10000 consumers using our technology platform At the end of 2015 we developed the worldrsquos first Good Spend Counter (raising $100000 on Pledge Me)
Our truly innovative payment-tracking technology allows consumers to make their values visible every time they swipe their Eftpos or credit card and get rewarded for doing so Businesses are able to effortlessly track what matters to customers use automated communications to connect in a personal and cost-effective way and then measure the increases in purchasing Irsquom delighted to say we have just secured a large amount of investment in our seed funding round
A STARTUP WITH A SOCIAL CONSCIOUS
B E N G L E I S N E R C O N S C I O U S C O N S U M E R S
We spoke to Co-founder of Conscious Consumers Ben Gleisner about what it takes to make a lasting impact and do social good
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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ST
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
IND
US
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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mdash CONSCIOUS CONSUMERS WAS FOUNDED IN 2009
CONSCIOUS CONSUMERS IS CREATING A GLOBAL MARKETPLACE FOR SUSTAINABLE PRODUCTS AND SERVICES AND DEVELOPING INNOVATIVE TOOLS AND SERVICES TO CONNECT PARTICIPANTS IN THIS MARKET
A STARTUP WITH A SOCIAL CONSCIOUS ndash BEN GELISNER CONSCIOUS CONSUMERS
C O N T I N U E D hellip
WHAT ARE THE BIGGEST CHALLENGES YOUrsquoVE FACED AS A SOCIAL ENTERPRISE HOW DID YOU OVERCOME THESE
It is much easier to get out of bed in the morning to go to work when you are very passionate about what you do Startup funding can be hard ndash you need to create a business model It can be difficult as a social enterprise when some of the benefits you offer are non-monetary (eg environmental and social) Being able to measure your social impact plays an important part in illustrating and shining light on the social benefits your business provides to its customers Initially we were getting funding from councils government and incubatorsphilanthropists to help support some of our non-monetary benefits We started out as many startups do part-time and based out of a garage but slowly we were able to build up to charging businesses for our services and we are now 100 self sufficient
ARE THERE ANY KEY DIFFERENCES BETWEEN SOCIAL ENTERPRISE STARTUPS AND REGULAR STARTUPS
Social Enterprises are different from standard businesses Social enterprises have been created for the primary objective of having social or environmental impact They can use the businesscompany model to achieve these objectives but making profitrevenue is only a means to these ends
WHAT LEARNINGS HAVE YOU GAINED AROUND EFFECTIVE BUSINESS MODELS
Having a business model is super important for social enterprises To sustain yourself you canrsquot keep asking for public funding or donations We have a subscription model currently which works well for us
WHAT ADVICE WOULD YOU GIVE A SOCIAL ENTERPRISE STARTUP LOOKING TO RUN SUCCESSFULLY
Business model is key You can supplement some of your revenue with donations etc in the short term but if you want to have a big impact you need to be looking to sustain yourself off revenue from paying users and customers
WHAT DO YOU FIND MOST REWARDING ABOUT RUNNING A SOCIAL ENTERPRISE
Our vision is a world where consumers and businesses prioritise people and the planet We believe a greater focus on people and the planet will help address some of the great challenges we are facing as a civilisation Running a social enterprise gives you all of the awesome parts of a standard startup (innovation autonomy excitement) AND also wersquore able to do good in the process
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
ME
NT
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
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IND
US
TR
Y I
NS
IGH
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCES
ldquoAs an entrepreneur you need to convince people to trust youmdashto fund you to invest their time to leave better paying jobs to support your cause ldquoYou need to clearly articulate a problem and the solutionrdquo Sasha advised adding that itrsquos easier to engage supporters when you make it clear how your organisation is part of that solutionrdquo
ASHOKA 7 STEPS FOR STARTING A SOCIAL ENTERPRISE
ldquoSo many social enterprises face challenges finding the right capital model We want them to know that there are amazing values-aligned investors out there who are prepared to put their investment where their values arerdquo
BEN KNIGHT HOW LOOMIO RAISED ETHICAL INVESTMENT AND MADE OUR SOCIAL MISSION EVEN STRONGER
ldquoGetting young people into employment is a vital contributor to building a stronger economy People who are employed help contribute to economic growth and do not require as much support from Government services On top of the economic benefits there are other important side effects of being employed Being in employment provides measurable benefits to individualrsquos mental and physical healthrdquo
CHRIS OrsquoNEILL DINE ACADEMY MAKING A DIFFERENCE
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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IN
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
ST
AR
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
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HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCES CONTINUEDhellip
ldquoIn other parts of the world people are faced with different kinds of ldquoproblemsrdquo They arenrsquot so much worried about finding an app that will water their plants mdash their actual concern is finding water An example among many others is Indiardquo
BEacuteREacuteNICE MAGISTRETTI HOW SOCIAL ENTREPRENEURSHIP IS MAKING A DIFFERENCE IN THE WORLD
ldquoMashable interviews the faces behind the startups and projects that are working to make a global impactrdquo
LAUREN DRELL 5 SOCIAL ENTREPRENEURSHIP STARTUPS YOU SHOULD KNOW RIGHT NOW
ldquoSetting up and running a social enterprise is not for the faint hearted not only do you have to satisfy your customers yoursquove got to make the business sustainable and achieve your social or environmental mission but the rewards are incrediblerdquo
SOCIAL ENTERPRISE UK NEW STARTUP GUIDE FOR BUDDING SOCIAL ENTREPRENEURS
ldquoAspiring social entrepreneurs can find comfort and knowledge in MOOCs or massive open online courses Platforms such as Coursera Udacity and Udemy feature a number of low-cost classes taught by expert faculty in socent and related fieldsrdquo
MATT PETRONZIO 7 ESSENTIAL MOOCS FOR BUDDING SOCIAL ENTREPRENEURS
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
ME
NT
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
ST
AR
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
ST
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
SIG
HT
D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
IND
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
IND
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
US
TR
Y I
NS
IGH
T
hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
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OR
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HT
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
GOING GLOBALRead these recommendations before you pack your bags and step on
that plane
Yoursquove tested your product or service locally yoursquove validated your market and now you are ready to break into new markets to scale up
Content
MENTOR INSIGHT_NICK GERRITSEN
STARTUP INSIGHT_WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP MISH GURU
OTHER RESOURCES_GOING GLOBAL
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
IND
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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NT
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HT
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NT
OR
IN
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HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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It is essential to gain a deep
understanding of your unique
business proposition test the
market build network capital
consider your Intellectual
Property (IP) think about
cultural differences and go in
with your eyes wide open to
drive growth in an offshore
market
N I C K G E R R I T S E N
Verify your business is unique
The reality is you must be certain there is an offshore market for what yoursquore doing If yoursquove heard the idea in TechCrunch or Wired itrsquos probably too late Before considering international markets you must know how and why your startup is different Drill down in your sector and nut out what your compelling competitive advantage really is
Once yoursquove done your homework and tested your product locally you can begin to look at growing your business exponentially and start testing your proposition offshore The international market you select depends on your networks the budget you have and which country will respond best to your product or service The world is a big place and going global is expensive Differentiate between key locations Avoid merely going to the default marketplace like Australia without first looking around The challenge is to lift your proposition up and build value on top of it
Ring up someone in the biggest market or someone with the biggest application with scalability and start a conversation The big players like multinationals are more open to having conversations than you might think After all they need to keep moving forward and innovate to survive Itrsquos never too early to have
GOING GLOBAL
Want to expand internationally Taking a startup business from NZ to an international market is a dynamic process
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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a conversation Develop your ldquonetwork capitalrdquo as a priority you may need money to fly somewhere but getting meetings with the right people is the key ask and can pay back many times the airfare
Be aware that cultural differences always exist The more time you spend in other markets the more you will identify and experience these differences For example the USA is based on overselling while NZ is all about telling the truth and these are two very different ways of operating It pays to do your research and talk to startups already operating in the market Showing commitment to the market yoursquore in and being present is important It creates real traction and demonstrates integrity consider what active engagement looks like in the market yoursquore targeting
Always ask the IP question is it worth investing in IP as a tool for locking in value This depends partly on the pace of your business sector It is not always sensible
investing in patents or protecting your software IP The same dollars spent to gain early traction in a massive market could prove a better investment than applying for patents and trademarks at the beginning At the same time protecting your IP creates more company value and increases your competitive advantage
Consider your startup a marathon run not a sprint Reflect on how you want it to work where you want to be based and have a good understanding of what it takes to get it done Train for the long haul and look after yourself in the process At the end of the day itrsquos your business
GOING GLOBAL ndash NICK GERRITSEN
C O N T I N U E D hellip
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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AR
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
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US
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IGH
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
ST
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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TELL ME ABOUT WHAT MISH GURU DOES AND ABOUT THE JOURNEY YOUrsquoVE TAKEN TO BREAK INTO INTERNATIONAL MARKETS
Mish Guru helps brands to be better at Snapchat Storytelling More specifically wersquove built a platform that streamlines uploading scheduling and publishing of content as well as providing the critical analytics that lets brands know what is resonating best with their audience
We also offer our clients a full range of implementation services to help get them up and running ndash from creative and design to full-service takeovers and community management
We are still a long way from being properly ldquoglobalrdquo That being said to get to a point at which we felt comfortable testing new markets there were a few key milestones that we had to first knock off
1 We had to build a functioning product
2 We had to prove that our product did what we claimed it would ie case studies
3 We had to learn how to sell our product
4 We needed to adequately finance our company both through investment and sales streams
5 We had to ensure that our team could continue to function remotely
WHAT IT TAKES TO GO GLOBAL WITH YOUR STARTUP
T O M H A R D I N G M I S H G U R U
We spoke to CEO amp Co-founder of Mish Guru Tom Harding about what it takes to successfully break into international markets
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
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IND
US
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IGH
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
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HT
D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
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ME
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OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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C O N T I N U E D hellip
HOW HAVE YOU DETERMINED THE RIGHT MARKET FOR YOUR BUSINESS AND WHAT GENERAL FACTORS DID YOU HAVE TO CONSIDER TO GET THE BALL ROLLING
We are currently targeting two markets for expansion the US amp Australia both of which have quite different factors to consider
US The rationale behind chasing the US market was largely focused around the scale of the market and the high penetration of Snapchat usage there
Australia Having started and proven out the business in New Zealand it was a fairly obvious decision to then push into the Australian market The initial determining factors for Mish Guru were we found the market was large enough to scale in culturally we are very similar we can leverage already existing networks and the similar time-zone makes it easier for us to provide support from New Zealand
WAS THE DECISION TO MOVE TO THE US DIFFICULT WHAT WERE SOME OF THE THINGS YOU HAD TO CONSIDER
The decision wasnrsquot difficult wersquod been targeting the US since the beginning of the Mish Guru journey there are however lots of considerations to be aware of when moving to America You have to think about visarsquos the
ideal location for your business your financial situation your team and how yoursquore going to support each other in different time-zones
With regards to visarsquos pretty much every Kiwi Irsquove spoken to over here has a story about their situation and for good reason itrsquos very hard to get set up properly Coming over on the ESTA B1 isnrsquot too difficult but take note that there are a limited number of times you can enter and exit before you start to get a grilling from immigration Most lawyers I spoke to werenrsquot that useful try and pin down another Kiwi whorsquos done it before you successfully if you want the best advice Full disclosure ndash Irsquom still working this one out
There is a common myth that Silicon Valley is the only place for tech startups but really it depends on what yoursquore trying to achieve in the States Our goals were largely focused around making industry connections so as a starting place New York made a lot more sense for Mish Guru
Itrsquos not a cheap exercise to set up a business in the US Thankfully we have a very supportive set of investors (shout out to Sparkbox and GD1) behind us that enabled us to do this earlier than we otherwise could have
Being on the East Coast I have an 8-hour time difference with our NZ team With time-zone differences you have to be prepared for late nights or early mornings (depending where yoursquore based) Mish started out life as
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
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US
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IGH
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
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HT
D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
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ME
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OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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OR
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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a remote company so a lot of our workflows were already set up to handle having distributed team members ndash even still itrsquos tough Make sure you factor these things into your thinking when looking at moving offshore
WHAT HAVE BEEN THE MAIN BENEFITS FOR TAKING MISH GURU TO AN INTERNATIONAL MARKETPLACE SO FAR
While New Zealand was a great place to develop our product and business model it is not a very big market There are simply more opportunities for us in international markets
HAVE YOU HAD ANY ISSUES WITH CULTURALLANGUAGE DIFFERENCES AND HOW HAVE YOU DEALT WITH THEM
People do not do business in the US in the same way that we do in NZ My biggest observations so far have been
bull Americans donrsquot expect small talk They like to get to the point very quickly and expect the same in return
bull Kiwis are very willing to try new things Americans like to see validation in use cases that they can relate to ie they donrsquot really care about case studies from NZ
bull While we can understand Americans easily they quite often have no idea what yoursquove been saying the last 5 minutes ndash they wonrsquot tell you either Speak slowly and clearly Donrsquot use the word ldquobrordquo
WHAT ADVICE OR KEY TAKEAWAYS DO YOU HAVE FOR OTHER STARTUPS LOOKING TO MAKE AN IMPACT IN AN INTERNATIONAL MARKET WHAT COMMON PITFALLS CAN OTHERS AVOID
Preparation is key
Again itrsquos not cheap to be move into a new market Ideally you should already have plenty of meetings lined up before you even get on the plane to go somewhere
bull Utilizing Kiwi networks based in your market can play a large role in this There are so many Kiwis doing awesome things here in the US and as long as you have a clear set of asks (not just ldquoletrsquos grab a coffee and chatrdquo) people will usually make time for you
bull Having experienced mentors behind you that have done it in the US before (or the market yoursquore looking at) will accelerate your business greatly
bull It will always take longer than you expect so be prepared for that and have time up your sleeve
bull Get your elevator pitch down
bull Startups in the US often arenrsquot as far advanced as they imply on first impression ndash donrsquot be intimidated keep doing what yoursquore doing
bull Last but not least by any means be focused Conferences Meetups etc might seem like a good idea but ask yourself ldquois this Meetupconference actually going to help further my business more than picking up the phone and calling a potential customerrdquo
mdash MISH GURU WENT THROUGH LIGHTLING LAB IN 2014
MISH GURU HELPS BRANDS TO BE BETTER AT SNAPCHAT STORYTELLING AND WITH PEOPLE TRACKING ABOUT 10 BILLION VIEWS PER DAY ITrsquoS A GOOD MARKET TO BE IN
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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AR
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
ST
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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T
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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IGH
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ST
AR
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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IGH
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
ST
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
TR
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IND
US
TR
Y I
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IGH
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
ST
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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C O N T I N U E D hellip
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IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCESldquoSigns Yoursquore Ready To Go International Say you are involved with a startup that begins to get some international traction A customer in Germany then Russia a few in Australia and the UK How do you know when the time is rightrdquo
TINT GOING GLOBAL OVERNIGHT HOW TO TAKE YOUR STARTUP INTERNATIONAL
ldquoBuilding a startup in one country can be very challenging Operating it ndash and expanding it ndash in another country is even harder At least thatrsquos the challenge faced today by most entrepreneurs looking to go globalhelliprdquo
CHRIS CAMPBELL GOING GLOBAL SEVEN LESSONS EVERY STARTUP SHOULD LEARN
ldquoThanks to the recent proliferation of trade programs throughout the world the savvy entrepreneur can greatly reduce the cost of doing business internationally especially if that business has anything to do with importing or exporting goodsrdquo
TOM TRAVIS BREAK INTO THE GLOBAL MARKETPLACE
ldquoMy first piece of advice is to utilise your current home country market Use your solid customer base to test new products launches marketing strategies and see what really worksrdquo
SAMATHA GRAVES GO LOCAL TO GO GLOBAL
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
ME
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
IND
US
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T
There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
ldquoTo successfully convert your business from domestic to international yoursquoll need to consider a new set of factors that might not necessarily affect a local-only company International business experts shared their insights on what it takes to break down your companyrsquos national borders and run a multi-country operationrdquo
NICOLE FALLON GOING GLOBAL HOW TO EXPAND YOUR BUSINESS INTERNATIONALLY
ldquoTaking a small business global is an complex and dynamic process Gaining a deep understanding of the targeted markets the competition current local market trends and the requirements to successfully launch and drive growth lays an important foundationrdquo
DENNIS DAY AND MICHAEL EVANS 10 KEY STEPS TO EXPANDING YOUR BUSINESS GLOBALLY
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
GROWTH HACKINGNeed to establish or grow your business fast with little budget
Everyone wants to get ahead in business with as little budget as possible growth hacking is doing just that
Itrsquos about understanding your market being original testing executing measuring and repeating what works Here are a few expert opinions on growth hacking techniques to help you make a start
Content
MENTOR INSIGHT_MARK MAJOR
STARTUP INSIGHT_GROWTH HACKING NATION
OTHER RESOURCES_GROWTH HACKING
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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ST
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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NT
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
He used growth hacking techniques to make a top hit the world wide app market with no marketing budget whatsoever He shares his top growth hacks with us in this video
We hear from Mark Major Business Development Manager of Agilyx NZ about falling down a hole and breaking his back to the go on to create a successful game out of it
GROWTH HACKING
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M A R K M A J O R
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
This is the message that you are greeted with landing on Asarsquos website Growth Hacking Nation
Asa Cox is not only a Co Founder of Intela AI but also a skilled Growth Hacking Strategist He is a persistent hacker who is passionate about finding ways to test ideas connect with key decision makers and get stuff done without many resources or time He thinks differently than most so for this monthsrsquo Straight Up we picked his brain on growth hacking tricks to help your business get ahead with zero budget or at least give you a place to start
WHAT IMPACT DOES GROWTH HACKING NATION HAVE ON STARTUP BUSINESSES
The techniques are designed to benefit those companies who need to grow or establish online sales with zero budget that can have a significant impact on startups locally or globally
WHAT ARE THE FUNDAMENTALS OF THE GROWTH HACKING MINDSET
Identifying testing and executing growth opportunities that are repeatable measurable and sustainable These ideas can be small improvements or large strategic projects they can (and should) be generated from all customer facing activities of a company The hacking part is about being focused on the goal and not the route to it growth is the only success criteria
GROWTH HACKING
A S A C O X G R O W T H H A C K I N G N AT I O N
We spoke to CEO amp Founder of Growth Hacking Nation Asa Cox about what it really takes to grow your startup on zero budget
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Growth Hacking
is a mindset that means
anyone in any industry can
do it right now
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
ST
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
US
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
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OR
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ME
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OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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OR
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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C O N T I N U E D hellip
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
WHAT DO YOU SEE FOR THE FUTURE OF GROWTH HACKING
For it to become a mainstream model for businesses to focus on the integration of markets sales customer experience and operations
HAVE YOU COME ACROSS ANY CHALLENGES WORKING THIS WAY
Those that have very little belief that digital growth can be achieved by offline companies In our view the majority of companies these days should actually have an lsquoonline firstrsquo strategy around which sales and marketing activities are built Doubting the potential of an online lead generation just forces us to start from scratch and educate the client on the growth that could be delivered to their business
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO GROW THEIR COMPANY
Tech startups are in prime position to benefit from growth hacking the cost of creating a minimal viable product (MVP) launching a beta testing learning and improving is relatively low In addition data can be collected at every single step and for every user interaction resulting in a clear picture of how to optimise each growth activity Establishing process and measurement criteria for success in marketing is not something most tech startups consider but they really should Finding a hack that works could be the difference between failure and success
HOW DOES GROWTH HACKING OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
Measure and optimisation are the foundations of growth hacking If something isnrsquot working tweak it and try again This is true for UIUX marketing content sales emails support callshellip everything This mindset helps break down problems into actionable parts and also forces a company to view everything from the customeruser viewpoint
CAN YOU OFFER US ANY GROWTH HACKING TECHNIQUES THAT WE COULD IMPLEMENT TODAY
There are so many to choose from growth hacking is all about quick and easy implementations
1 Always create a landing page for each Google advert focus its content exclusively on the keywords and test for conversion to a simple single call to action
2 Identify one way to reach a highly attractive group of potential customers eg a LinkedIn group a hashtag or Facebook audience and promote to it meticulously until revenue from engagement is predictable
3 Collect prospect email addresses at every possible opportunity a mailing list is the most powerful free sales tool available
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mdash GROWTH HACKING NATION WAS FOUNDED IN 2016 GROWTH HACKING NATION HELPS BUSINESSES CREATE PROCESSES TO ENGAGE BEST PROSPECTS AND CONVERT THEM INTO PAYING CUSTOMERS
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
NT
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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IGH
T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
IND
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
DANNY OLINSKY GROWING FROM $5000 TO $25000 IN MRR
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
FIRST ROUND REVIEW INDISPENSABLE GROWTH FRAMEWORKS FROM MY YEARS AT FACEBOOK TWITTER AND WEALTHFRONT
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
ASA COX NZ NOW ndash TEARDOWN
ldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
STUART MCKEOWN 15 EARLY TRACTION GROWTH HACKING STRATEGIES FOR STARTUPS
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
ST
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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NT
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
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HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
EXPONENTIAL TECHNOLOGYWhat the heck is Exponential technology Well yoursquore about to find out
And what does it mean for your business
Find out how you can leverage scalable organisational practices to grow your business 10 times the average company scale rate of just 10
Content
MENTOR INSIGHT_EXPONENTIAL TECH GLENN ANDERT
STARTUP INSIGHT_LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x MEVO
INDUSTRY INSIGHT_WHAT IS EXPONENTIAL TECHNOLOGY
OTHER RESOURCES_EXO TECH
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
ME
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
ST
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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RY
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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ME
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OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
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IGH
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
Glenn Andert Creative HQrsquos Enterprise Innovation expert talks us through what Exponential Technology is and why is applies to your business
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G L E N N A N D E R T
EXPONENTIAL TECH
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
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NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
HOW DOES MEVO WORK AND WHATrsquoS THE ULTIMATE VISION FOR YOUR BUSINESS
For people who live in cities we can remove the need to own a private car Members use their smartphones to book and unlock our fleet of Audi Electric Vehicles and use them as if they were their own
For the next three years wersquore focussed on the New Zealand market and building up our fleet to serve the densest parts of New Zealandrsquos major centres From here we have much bigger ambitions and our business is structured to enable these ndash but wersquore focussed on executing locally for now
WHAT IMPACT DOES BEING AN EXPONENTIAL ORGANISATION (EXO) HAVE FOR MEVO IN THE NZ TECH SPACE
So ndash Irsquove only realised recently that we fit into this ldquoExOrdquo bucket even though wersquove been building the company for two years Itrsquos quite cutting edge in terms of language and concepts in this space right now
For me being a software guy and co-founding a hardware business ndash when we started I thought ldquohow can I make this into a company that can scale up like a software business but relies on these expensive bits of hardwarerdquo You can see some of this thinking going on at Tesla right now with Elon Muskrsquos comments on Teslarsquos real job being not to design this mass-market electric car (the Model 3) but actually design the factory that builds them
LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x
F I N N L A W R E N C E M E V O
We spoke to Co-founder of Mevo Finn Lawrence about what it takes to leverage exponential technologies to scale a business
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mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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ST
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
ST
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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NT
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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AR
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
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NT
OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
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Y I
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T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
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IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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AR
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IGH
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
hellip I think he phrases it as ldquobuilding the machine that builds the machinerdquo If you think about it this changes a lot of things ndash suddenly if you want to up your production all you need is the plans and fit-out for another factory documented really well and the ability to prove market demand Then you can bring in some capital hire the contractors and put another Model 3 factory anywhere Then this automated factory with minimal staff spits out a bunch of cars into the local market and you have a really clear idea of the return on investment (ROI)
For us being an ExO means that we have the potential to build something that can be a national utility quite quickly and then in theory be picked up and dropped anywhere in the world that we can see a demand in the market It makes exporting very easy
WHAT IS EXO IN A NUTSHELL AND WHAT DOES BEING AN EXPONENTIAL ORGANISATION MEAN FOR BUSINESSES IN NZ
Exponential Organisations are those that leverage exponential technologies and scalable organisational practices to be able to scale 10x where a competitor may only be able to scale 10
I think in the context of New Zealand if you can build an exponentially scalable company why wouldnrsquot you I think if your industry and market allow for these kinds of approaches (and Irsquod wager most do or will very shortly) then it just means yoursquore opening yourself up to someone coming and eating your lunch if you donrsquot set it up right from the start
hellip I think it also lets you compete in super-niche markets where you may have a huge competitive advantage and easily export your product or service The lifestyle in NZ has got to be the biggest draw-card so if you can build an ExO anywhere why wouldnrsquot it be NZ
WHAT DO YOU SEE FOR THE FUTURE OF EXPONENTIAL TECH AND WHY SHOULD WE THINK ABOUT BECOMING AN EXO
Irsquom a bit of a mad futurist with this stuff ndash honestly When you look at the trend lines of things that are on exponential priceperformance curves and have been for a while ndash processing power solar panels batteries nanotech biotech access to space etc ndash it becomes pretty clear that we are living in exciting times in 2016 These trends combined with the leaps that are being made in the 3rd world ndash for example you have parts of Africa going from no phone lines straight to 4G without stopping for dial-up ndash all of this is painting the picture of a pretty crazy future
I would say the world is becoming more exponential and so I think the businesses of the future will need to think about where they fit into that picture This doesnrsquot mean that every company needs to be some big monolithic ExO ndash I think there will always be a market for local high-quality stuff ndash but if you run a company and arenrsquot thinking about how these technologies are going to impact your industry Irsquod say yoursquore in danger
ST
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ST
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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T
WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
ST
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
ST
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
IND
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
NT
OR
IN
SIG
HT
D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
IN
SIG
HT
Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
ST
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
IND
US
TR
Y I
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IGH
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
hellip One of the biggest things I think is that people find it quite hard to think exponentially ndash it doesnrsquot make much sense to humans because we havenrsquot evolved in an environment where it was possiblehellip until now
The basic example that yoursquoll hear quite often is that if you think about taking 30 one-meter steps ndash that gets you across a big room right That would be linear and itrsquos easy to judge where the halfway mark is and measure progress
What if I take 30 steps and double the length of my step every time Do I get to Australia Maybe Europe Well it turns out that actually 30 doubling steps is over a billion metres or 26 times around the Earth or over 25 times the distance to the moon On top of this Irsquom not halfway there until the 29th step itrsquos hard to predict how these things will grow over time intuitively
One example of this that really worries me is the reliance our economy has on the dairy sector ndash there are companies in the US working on how to synthesise milk from bio-engineered bacteria etc This seems like childrsquos play now ndash ldquonobody will drink that stuffrdquo say the farmers Itrsquos expensive itrsquos not as good But the issue is that wersquove pretty much maxed-out our ability to generate milk using cows The synthesised milk theyrsquore working with is getting better exponentially Even if it takes 20 years (hint it wonrsquot) itrsquos likely that there will be some way of scalably producing milk that costs 110th or 1100th of what it would to get it from a cow ndash and even if itrsquos not as good itrsquos way cheaper and suddenly thatrsquos in danger of sinking the industry that our country is built on
HAVE YOU COME ACROSS ANY LIMITATIONS OR CHALLENGES THROUGH WORKING THIS WAY
A friend of mine has a great line which goes something like ldquoeveryone only talks about the successes but these ExOrsquos can also have an exponential failurerdquo
I think this is a symptom of not getting the basics right ndash unit economics product-market fit user retention You can see big venture capital funded future ExOrsquos crumbling all over the world Itrsquos very trendy to build a scalable company right now but if the numbers donrsquot stack up yoursquoll always run out of money
If you focus on the basics and validating all your assumptions in the early stages then in theory you should be off to a good start The danger comes if you get complacent and forget about the fact that the exponential change thatrsquos driven your success is only getting more exponential and that you need to be keeping up with that
The other side which can be frustrating is that the nature of the game is that you spend a long time at the beginning not making much progress as you go through the steps of getting from 1 to 100 ndash the dream being that then the flywheel is spun up so that you can then go from 100 to 10000 in the same amount of time
ST
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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NT
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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AR
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
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IN
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ME
NT
OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
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Y I
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IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
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IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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WHAT ADVICE WOULD YOU GIVE TO A TECH STARTUP LOOKING TO 10X THEIR COMPANY
Look at the trends in exponential technologies ndash and imagine them applied to your market solving the same problem For example airlines need to be worried about VR In a few years wersquoll no longer be travelling for business because wersquoll have virtual meeting rooms that are just a headset away Sure maybe for some important meetings people will still trudge to the airport but even if it ate only 50 of their market it would be devastating
Think about your plan for scale ndash if I gave you 100x the customers and a theoretically infinite credit line how quickly could you service those people How about 10000x What are the rate limiters on your business
If the above makes you worried maybe you need to be working not on ldquothe machinerdquo (your product or service) but the ldquomachine that builds your machinerdquohellip
HOW DOES EXO OFFER UP NEW POSSIBILITIES AND PERSPECTIVES TO SOLVE PROBLEMS
I like the idea of ExO because you kind of end up building the future The whole thing is based on your bet of what the world will look like in many years time I also think that if yoursquore thinking in an exponential way there is so much knowledge and opportunity lying out in the open that nobody has seen yet and itrsquos exciting to be able to have a go at a piece of that
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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RY
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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T LEVERAGING EXPONENTIAL TECHNOLOGIES TO SCALE 10x ndash FINN LAWRENCE MEVO
C O N T I N U E D hellip
HOW DOES THE EXO THEORY MULTIPLY KNOWLEDGE EFFORT CREATIVITY CAPITAL CUSTOMERS EFFICIENCY FOR STARTUPS
Some of the important tenets of the ExO theory are being super involved with your customers ndash up to the point of hiring them or crowd-sourcing from them ndash and that you have a flat organisational structure where people are empowered to do their best work
I think when companies get these things right theyrsquore great to work for and buy from Things are shared more ndash for example a big trend right now is using content to up-skill and engage your users There tends to be a more holistic view of things ndash so if I put a bunch of time into producing an eBook on whatever is it my company does the ROI on that isnrsquot initially clear but there is a bet that by positioning my company as a thought leader in the
space and structuring my product to be appealing to that target demographic it will deliver me more value than a bunch of Google Ads that cost the same amount but be much more transactional
Irsquove also seen some great examples of ExOs being far more human-centric and recognising that partnerships and integrations can be a great value-add Eg in some places you can now book an Uber from Facebook Messenger Two big companies recognising that there is a clear opportunity to drive more custom to both of their products in a very symbiotic way that delivers tonnes of value for the user
It is interesting that in some ways as these technologies advance faster and faster we might start to see some of the basic principles of nature come back in here and there
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
ME
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
ME
NT
OR
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
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OR
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ME
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OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
ST
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CAN YOU OFFER US ANY EXO STARTUP HACKS THAT WE COULD IMPLEMENT
The classic Startup thinking goes ndash ldquoDo things that donrsquot scalerdquo I fully agree with this but some people take it to mean ldquoDonrsquot worry about planning for scalerdquo This is wrong Being Lean and only doing what you need for your next 10x keeps you very productive but if this isnrsquot guided by a larger vision of where your company fits into the future then you will eventually run out of track unless you get very lucky
I would think about your company and your product as two very distinct things There is a great bit from Mark Zuckerberg where he talks about the fact that Facebook wasnrsquot a ldquocompanyrdquo for ages They were just building a product until they got to a point where they realised this thing had massive potential to be a big influential company ndash and then they switched to building that instead ndash the machine that builds the machine
I think this also leads into ndash ldquoknow what success looks likerdquo ndash all of the founders should have a shared understanding of what it looks like when you win Itrsquos unrealistic to think about working at this pace and on this stuff forever so it needs to have success criteria This doesnrsquot always mean ldquoscale up sell outrdquo ndash maybe you want your company to be an ExO social enterprise guided by a company constitution to continue the mission and maybe success looks like you hiring a CEO to replace yourself in 5 years time to run the company Just have a plan around where yoursquore going
hellip To quote Alice in Wonderland
ldquoWould you tell me please which way I ought
to go from hererdquo
ldquoThat depends on a good deal on where you
want to get tordquo
ldquoI donrsquot much care where ndashrdquo
ldquoThen it doesnrsquot matter which way you gordquo
HOW CAN I GET INVOLVED WITH MEVO
If owning a car sounds like a drag ndash then you can join our pre-sales wait-list at mevoconz Wersquoll be putting Audi EVs down in central Wellington and Auckland over the next 12 months and wersquod love you to ditch your car and start car sharing with us
Otherwise if yoursquore interested in EVs shared mobility or the future in general ndash send me an email at Finnmevoconz
mdash MEVO LAUNCHED INTO THE NZ MARKETPLACE IN 2014
MEVO IS NZrsquoS FIRST ELECTRIC CARSHARE BRINGING ON-DEMAND MOBILITY TO URBAN NEW ZEALANDERS AND PROVIDING A CARBON-NEGATIVE ALTERNATIVE TO CAR OWNERSHIP IN THE CITY
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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NT
OR
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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AR
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
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IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
Computers are the example of an Exponential Technology wersquore all familiar with ndash doubling every 18 months or so (MOORErsquoS LAW)
There are many other exponential technologies like 3D printing drones robotics artificial intelligence synthetic biology etc Theyrsquove all be around for a long while with lots of doubling periods behind us Drones for example have been around for decades
That brings up the second attribute of an ldquoExponential Technologyrdquo It is a technology that is now at the point where its price-performance makes it possible to be incorporated into solving todayrsquos business problems in ways that were not previously possible
For example it used to be the case that only the military could afford to spend millions on each individual drone Now wersquove got consumer-level drones with amazing capabilities for a few hundred dollars Drones can now be leveraged to significantly disrupt many sectors
Put simply exponential technologies are the ones that are on short doubling periods and have also entered the area of their exponential curve where they enable the amazing
An Exponential Technology is two thingsFirst itrsquos exponential In each period it doubles in capability or performance Or perhaps on the flip side it halves in cost in each period
WHAT IS EXPONENTIAL TECHNOLOGY
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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RY
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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mdash GLENN ANDERT CREATIVE HQ ENTERPRISE INNOVATION
WHY SHOULD WE CARE ABOUT EXPONENTIAL TECHNOLOGIES
Simply put organisations that leverage exponential technologies can completely disrupt major business sectors Letrsquos carry on with the drone example The UK has changed its regulations to enable Amazon to test last mile delivery using drones The US is following suit
In the US 40 of consumers are within 20 miles of an Amazon distribution center Amazon could use some combination of autonomous trucks and delivery drones to deliver your stuff to you exactly where you are any time of day for probably 110th the cost of current logistics systems That would disrupt the last-mile logistics companies to the same extent that Uber is disrupting taxi companies
It would likely further disrupt retail Why would you spend 45 minutes in Auckland traffic to go get that item you need when it could be droned to you while you spend your precious time doing something else Retail might go the way of banks ndash less and less need for storefronts
This in turn has a huge impact on cities ndash who occupies the main street what businesses exist where do they operate and what about the flow of people These disruptive impacts would most likely occur in New Zealand as well Amazon is a good example you wouldnrsquot consider them the ldquodevelopersrdquo of robotics or drone technologies but they are being very clever and aggressive at how they leverage exponential technologies as building blocks in their business
WHAT OTHER EXPONENTIAL TECHNOLOGIES WILL YOU BE SEEING MORE OF
The list of exponential technologies is incredibly long Wersquoll cover just a couple more examples
3D printing can now be done with 750+ materials This includes many plastics and resins metals like titanium biologics like cells agricultural waste etc You can now 3D print cars houses and skin
Artificial intelligence (AI) is another AI now regularly trounces the worldrsquos best players of the Chinese game of go which is 100 times more complex than chess AI now wins in aerial combat against military combat flight instructors AI now helps lawyers design their legal cases AI now helps doctors prescribe medicine to their patients
Renowned futurist Ray Kurzweil describes a point in time where computer intelligence will surpass that of its human counterparts (lsquoSingularityrsquo) Given the number of Exponential Technology verticals itrsquos unlikely that there will be this lsquosingle pointrsquo Within the next twenty years Exponential Technology will threaten to disrupt anything from 47-81 of jobs including those previously considered safe from automation Itrsquos up to us to embrace the technology and change with it and be a part of the disruptive force The alternative Ignore it and become disrupted ourselves
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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NT
OR
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HT
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OR
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HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCESldquoWhen yoursquore starting out donrsquot worry about who yoursquoll need in six months or a year Focus on getting the people who can create progress todayrdquo
TECH CRUNCH EXPONENTIAL ORGANISATIONS ARE THE FUTURE OF GLOBAL BUSINESS AND INNOVATION
ldquoIf people on a team share the same set of beliefs and values want to work together and love being together theyrsquoll achieve collaborative successrdquo
A COMIC BY SINGULARITYU SELF-DRIVING CARS REALLY
ldquoAwesome interview questions where your next super talented hire might come fromrdquo
SALIM ISMAIL HOW EXPONENTIAL ORGANISATIONS LIKE UBER AIRBNB ARE CHANING THE WORLD
ldquoA good idea with poor leadership is bound to fail a bad idea with good leadership has rdquo
INTERVIEW WITH ELON MUSK Y COMBINATORrsquoS HOW TO BUILD THE FUTURE SERIES
ldquoWrite a job description for that ideal partner Make sure you are perfectly clear on whatrdquo
BENEDICT NZrsquoS CREATE GROUP IS DEVELOPING NEW BIO-PRINTING TECHNIQUES AND BIOMATERIALS
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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NT
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NT
OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
GETTING FUNDEDFunding is a crucial part to any startup making it
Letrsquos take a look at the startup investment opportunities available to you in NZ how you might gain a funding round for the first time and how to go about building strong investor relationships
Content
MENTOR INSIGHT_DAVID ALLISON
STARTUP INSIGHT_NZ STARTUP FUNDING AN INSIDE PERSPECTIVE PUBLONS
INDUSTRY INSIGHT_HOW TO FUND A STARTUP BUSINESS IN NEW ZEALAND
OTHER RESOURCES_FUNDING
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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D A V I D A L L I S O N
Donrsquot plan alone plan ahead
Start talking about your business get connected to your customers and get a feel for what the market expects to see Most importantly listen for feedback Begin a conversation with investors and get feedback from them too ndash at first it may be less about investment terms and more about your business idea
These initial conversations will be your first steps towards building the strong investor relationships that will help you get your funding across the line
Investor leadership makes deals happen
Do your business a favour by putting an organisational structure in place now and save yourself the pain later when suddenly itrsquos all on and you find yourself scrambling for legal contracts or IP
Keep important documents in order as you go to make it as smooth and easy (as possible) for investors to give you the money you are asking for especially when you arenrsquot the only company they are looking at investing in
At the same time there is no set formula for due diligence expect the unexpected and be prepared to front-foot any last minute requests Many founders talk about going through a funding round as a full-time job so make sure your startup has enough resource to continue functioning while you are closing the deal
Make a start by putting
yourself out there
Understand your business from
the inside out know that you
donrsquot need a final draft business
to start a conversation with an
investor do your due diligence
and utilise New Zealandrsquos
close-knit community as a
competitive advantage
GETTING FUNDEDHow to secure funding as a startup will be one of the most important problems to solve in order to scale and expand
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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Donrsquot forget to use NZrsquos two degrees of separation to your advantage Reach out to investor networks or angel clubs like Angel HQ or get more involved in the broader startup ecosystem in general Many investors take an active part of the broader startup ecosystem in NZ getting involved with Startup Weekends local speaker events and accelerator programmes so making the connection can be easier than yoursquod think
Build rapport with investors early on be open and seek feedback But most importantly do your homework ndash working with investors that align with your startups goals and vision will give you access to core expertise and experience that can prove just as if not more beneficial than the cash injection
Donrsquot forget to use NZrsquos two
degrees of separation to your
advantage
GETTING FUNDED ndash DAVID ALLISON
C O N T I N U E D hellip
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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CAN YOU OUTLINE THE DIFFERENT STAGES OF YOUR FUNDING JOURNEY WITH PUBLONS TO DATE HOW LIGHTNING LAB PLAYED A PART AND WHAT HAS HAPPENED SINCE THEN IN TERMS OF YOUR FUNDING ROUNDS
Lighting Lab was our first source of external funding It was an opportunity to spend three months focusing 100 on the business speak to investors start making connections and having the conversations that became the foundation of our funding journey
In the 2+ years since then wersquove been through three funding rounds The first was helped greatly by the connections we made through the lab with NZ investors Since then wersquove built relationships in our specific industry Those relationships drove our most recent and largest raise
WHAT WAS THE MOST CHALLENGING ASPECT OF SECURING FUNDING AT ANY POINT FOR PUBLONS
In many ways raising a funding round is very similar to selling your product However if you look at the statistics itrsquos clear that investors need to say no almost all of the time That can be hard work Itrsquos kind of obvious in retrospect but Irsquove found selling to customers much more enjoyable
Yoursquore there to solve a problem for them so it is more rewarding and the success rate is higher
NEW ZEALAND STARTUP FUNDING AN INSIDE PERSPECTIVE
A N D R E W P R E S T O N P U B L O N S
We spoke to CEO amp Founder of Publons Andrew Preston about funding a startup in New Zealand
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
IND
US
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
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HT
ME
NT
OR
IN
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A RESOURCE FOR THE ACADEMIC COMMUNITY AND SOMETHING THAT REVIEWERS CAN PUT ON THEIR RESUME
WHAT ADVICE WOULD YOU GIVE A STARTUP LOOKING TO SUCCESSFULLY SECURE FUNDING FOR THEIR VENTURE FOR THE FIRST TIME
Obviously the easiest route is to build something that people are paying for ndash the key thing investors are looking for is traction within your market Beyond that having a vision that you can articulate clearly and concisely Irsquove found that investors who understand the problems in our industry and buy into our vision are far more likely to be interested and engaged so seek out investors who are actively involved in your space
HOW MUCH PREPARATION GOES INTO PUTTING TOGETHER FUNDING APPLICATIONS
It takes a lot of work and is a big distraction In my experience preparing and taking meetings can be a full time job for some months ndash although you have to keep doing your other jobs So I would recommend allowing more time than you think you would need and be prepared for investors to ask you for something you might not have thought about You donrsquot want to be the one slowing the process down because you donrsquot have enough time to get investors what they are asking for to seal the deal
Apart from that it is really hard to give generalist advice ndash basically everything else is specific to the company and its stage In an ideal world you are preparing not only for this funding round but the funding rounds after it Think about the bigger picture ndash identify what you will achieve with this round of investment and how it will add value to the business
WHAT LEARNINGS HAVE YOU GAINED AROUND FORMING SOLID INVESTORFOUNDER RELATIONSHIPS THAT YOU COULD SHARE
Work with your investors and get to know them Use your networks and any other thing you can think of to find the people that have passion for and expertise in your market Early on theyrsquore investing in you and your vision so you really want to have a relationship before they put money into the business That relationship comes from seeking out constructive feedback early on and maintaining open and regular communication channels Donrsquot underestimate the value you will get from these relationships in the long run
That said remember that this is your company and your vision You will get lots of advice and suggestions along the way This is a good thing Consider it and incorporate it but hold true to what you believe
NEW ZEALAND STARTUP FUNDINGhellip ndash ANDREW PRESTON PUBLONS
C O N T I N U E D hellip
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
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money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
US
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
SIG
HT
ME
NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
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US
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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There are many variables when applying for funding and we can help you better understand what is involved at each stage as well as help you navigate through the range of options successfully
Funding is a crucial part to any startup making ithellip so letrsquos take a look at the startup investment opportunities available to in NZ
SEED CAPITAL
The initial capital used to start a business the business is usually in conceptual stages
SECURING STARTUP SEED FUNDING
If you have never raised funding before the first questions we will be asking you will be around getting a feel for where your business is at How much money are we actually talking about In NZ seed capital is usually within the realm of $2030k but has stretched up to $100k in a few cases
In New Zealand there
are typically three main
types of funding
Seed Angel and Series A
The first step is to recognise
the differences between
the three types of startup
funding available in NZ
and at what stage to
engage with each type
HOW TO FUND A STARTUP BUSINESS IN NZ
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
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HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
US
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
SIG
HT
ME
NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
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NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
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TU
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T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
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IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
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YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
hellip It can come from individual investments from friends and family with deep pockets or grants from associations like the Regional Business Partner Network or Callaghan Innovation These days there is also the option of a crowd-funding campaign
ANGEL INVESTMENT
Angel investment comes from an Angel ndash an investor who provides financial backing for startups and is part of an Angel Club There are a few different Angel Clubs across NZ from Ice Angels in Auckland to Angel HQ in Wellington to Enterprise Angels Flying Kiwis Archangels and many others dotted around the country The capital provided can be a one time injection of seed money or ongoing support that carries the company through The business applying for Angel funding is usually a little bit further down the track may have a prototype and have already tested the market with the product
SECURING ANGEL FUNDING
For companies a little bit further down the track (those who may already have a prototype or a product built already) typically seed funding may be too small an amount for what that business needs to scale and grow In this case angel investment is likely to be more appropriate The point of angel investment is to either expedite the process of getting to a Series A funding round or to massively scale the company
With typical angel investment funding rounds in New Zealand were talking about anything between 100k ndash 500k even up to 750k In almost all cases angel deals are what we call syndicated (ie there is more than one angel putting money into the investment pool it is a joint investment process)
Quite often these Angel investment deals are done through an Angel club which might be 5 angel investors who all invest 50k In almost all cases in NZ Angel deals are what we call syndicated which means multiple angels are pooling their money together rather than investing on their own The clubrsquos job is to organize the investors so that your are dealing with a $250k pool of IN
DU
ST
RY
IN
SIG
HT
money rather than 5 investors making the process more straightforward
SERIES A
Series A is the name of a round typically given to companyrsquos first significant stage of venture capital financing The name refers to the class of preferred stock sold to investors in exchange for their investment
Differences between the Angel funding round VS the Series A To gain Series A type funding in NZ means the company has to be at a point where it has completely validated its proposition to the market It has got proof points data traction customers contracts and itrsquos proven the idea works and has legs Itrsquos already operating in a commercial space In New Zealand Series A investment rounds are somewhat rare in compared to the United States
In the US ventures can often get Series A funding on very little data or proof points The risk adversity in the States is a lot higher which enables ventures to receive significantly larger amounts of funding Itrsquos not uncommon for businesses in the states to receive 5 or even 10 million dollars of funding on the back of a good pitch but these amounts are unheard of in the New Zealand startup market
The biggest rounds that we have seen in NZ are more in the 2-3 million range for Series A That is usually when venture capital companies like MOVAC GD1 and Spark Box come in and put almost over 1 million in In NZ investors will want to see that this is already a de-risked idea itrsquos proven it works and it has validated itself in the market
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
IND
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
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ME
NT
OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
TU
P I
NS
IGH
T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
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HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
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T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
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in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
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HIGH NET WORTH INDIVIDUALS ANOTHER SOURCE OF FUNDING OUTSIDE OF SEED ANGEL amp SERIES A
Another way to fund a startup business for companies looking at middle range investment is what we refer to as high net worth individuals ndash people who typically have a large asset bases usually 10rsquos of millions of dollars
The most common occurrence of this is when a startup has a strong alignment with these individualrsquos specific investment interests and expertise this calls for understanding which investors have a track record of investing in what types of companies and where their personal interests lie Usually the investor will put the whole amount theyrsquore investing coming in and will want a significant equity stake for the investment they may want to be part of the board and have input in the direction of the company
High net worth funding deals are uncommon in the New Zealand market they tend to be private and heavily based on personal connections They often are lucrative deals because the high net worth individual who makes the investment usually has a thorough understanding of the space in which they are investing providing the startup with access to expert advice as well as that all important cash injection
NZ VENTURE INVESTMENT FUNDS (VIF) amp SEED CAPITAL INVESTMENT FUNDS (SCIF) AND HOW THEY WORK
Navigating through VIFrsquos amp SCIFrsquos in the way of access and processes can be somewhat tricky for a new or even
established venture Going through the Angel network Creative HQ can access Seed Capital Investment fund (SCIF) enabling a match of investment of up to 500k of what the private sector has put in and normally up to 250k for a first investment round A match fund allows for funds to be matched by other sources For example if you were able to get 200k out of Angel HQ and Angels then SCIF would match that with another 200k so you would get 400k funding in total
Is matching normally a done deal if you know the way to navigate Itrsquos a done deal unless their funds are tapped out that would be the only way you wouldnrsquot get match funding In all other cases if you make an application and itrsquos gone through proper channels like Creative HQ and Angel HQ and received as investment itrsquoll be matched by SCIF
ARE YOU PREPARED TO GET FUNDING
In order to get funding you need to be really clear about the differences between Seed Angel and Series A investment rounds and what stage your business is at on the scale The main difference between the funding types is the amount of money your business is getting and the amount of evidence and traction yoursquove got for your product that will equate to the appeal your startup has for investors An example of this could be yoursquove been in business for 2 months and yoursquove just signed a contract with a major client worth several million dollars with an idea that is absolutely feasible but perhaps you donrsquot have money to execute on it In this case yoursquove got exclusive access to something that is really valuable so you can leverage your idea
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hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
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OR
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THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
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Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
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WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
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mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
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P I
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IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
IND
US
TR
Y I
NS
IGH
T
hellip In this situation you might be skipping Seed or Angel funding and going straight into Series A funding rounds because you need the money to execute You will have to have the proof points here to go along with it Typically people who are just starting out that have a good idea itrsquos about Seed funding to launch the idea into the marketplace and get some traction and prove your idea is valuable
WHICH POT OF FUNDING YOU ARE WANTING TO ACCESS AND HOW MUCH DO YOU NEED
Being clear about how much you need and where you are going to access it is very important in securing investment The main question from the investor will be what will you do with the money And the question after that will be what will you do if we give you only half or double that Being prepared for these types of questions will determine how successful you are in terms of financing your startup
BE COMPELLING TO INVESTORS PUT YOUR OWN MONEY IN
Investors like to see startups financing their initial funds and managing to find small amounts from other sources Even if its comparatively small amounts it goes to show that you are vested in your idea and in growing your business
Acceleration programmes incubation programmes and co-working spaces that Creative HQ provide are also useful in this way Your venture is surrounded by people and other businesses and can pave the way for a powerful and connected network leading to well fitting investment deals
LOOKING FOR MORE INFORMATION ON HOW TO GET STARTUP FUNDING
We hope this gives you a brief run-down on a few of the different types of funding options ndash for more specific advice on how to get funding for a startup have a look at our STARTUP FUNDING READINESS QUESTIONNAIRE
HOW TO FUND A STARTUP BUSINESS IN NZ
C O N T I N U E D hellip
mdash PUBLONS WAS FOUNDED IN 2012 AND CAME OUT OF LIGHTNING LAB IN 2013
PUBLONS WORKS WITH RESEARCHERS EDITORS AND MANY OF THE TOP PUBLISHERS IN THE WORLD TO TURN PEER REVIEW INTO A
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
SIG
HT
ME
NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
TU
P I
NS
IGH
T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCESGoldmine of personal funding stories how-to articles on Venture Capital relationship building what to expect from a VC meeting the lsquoTriple Play of Presentingrsquo and much much more
MARK SUSTER RAISING VENTURE CAPITAL
ldquoMYTH The startup financing process is about one thing ndash money TRUTH A successful financing process results in a partnership that delivers benefits beyond just moneyrdquo
REID HOFFMAN WHAT I WISH I KNEW BEFORE PITCHING LINKEDIN TO VCS
ldquoWhat do you think the majority of VCs do wrong Brad Act like a crowdrdquo
AN INTERVIEW WITH BRAD FELD ASSESSING FOUNDERS INVESTMENT THEMES AND READING SUPERPOWERS
ldquoWhile five to ten years ago the options available to startups were few lately wersquove witnessed an important surge in Venture Capital available for startups at all stagesrdquo
JAMIE NOVOA UNDERSTANDING DIFFERENCES IN STARTUP FINANCING STAGES
ldquoAny startup founder can tell you the most common question they hear from investors is not about the founders or the product but lsquowho else is investingrsquo rdquo
PAUL GRAHAM ESSAY HIGH RESOLUTION FUND RAISING
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
SIG
HT
ME
NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
TU
P I
NS
IGH
T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
PRACTICE THAT PITCHHow to win over the hearts and minds of investors
Are you winning over the hearts and minds of the people ready to invest in your business idea and making it easy for someone to repeat your story at the same time
Herersquos how to tell your most compelling story in under 7 minutes
Content
MENTOR INSIGHT_LAURA REITEL
STARTUP INSIGHT_PERFECTING YOUR PITCHGEO AR GAMES
INDUSTRY INSIGHT_5 RULES OF PITCHING LISTICLE
OTHER RESOURCES_PITCHING
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
SIG
HT
ME
NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
TU
P I
NS
IGH
T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
PRACTICE THAT PITCHPitching can be a daunting task yoursquove got an idea that yoursquore
passionate about and yoursquore on a mission to make OTHER people
feel just as passionate about your idea as you are
L A U R A R E I T E L
You need to be able to communicate the value of your business in a clear succinct way
To make it easier wersquove broken down the pitch framework into four parts The intro the demo the business stuff and the close If you can nail all 4 you might snag yourself a meeting with a potential investor
THE INTRO Be more interesting than their cellphone
The intro is all about grabbing the audiencersquos attention you have to be more interesting and entertaining than daily distractions Make sure you establish credibility explain what you do and why the investor should care and donrsquot forget to mention the name of your company
THE DEMO Show me donrsquot tell me
The demo will take up the majority of your pitch you need to be very clear about the problem yoursquore addressing with the solution yoursquove created When walking through your prototype or functionality remember that you can start weaving in other useful information like where people would hear about your product
Yoursquove got a relatively
short amount of time to
convince them that your
idea is the idea they
should invest in
Pitching is an integral
part of startup life
ME
NT
OR
IN
SIG
HT
ME
NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
TU
P I
NS
IGH
T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
ME
NT
OR
IN
SIG
HT
THE BUSINESS STUFF Traction validation roadmap ndash de-risk de-risk de-risk
With the business portion of the pitch you want to derisk the investor decision Bottom line how are you going to generate returns for the investor Talk about the traction your company has had tell us how big of a market opportunity there is differentiate yourself from your competitors in a way that isnrsquot knocking them and walk us through the steps your team is going to take over the next 6-12 months to achieve the business objectives
Are you making work streams more efficient is your business scalable can you apply your solution overseas Whatrsquos your secret sauce
THE CLOSE Stick it out to the end
Make sure you remain confident throughout the pitch until the end - donrsquot rush it You want to establish a connection and build trust with your audience If there is a QampA section make sure you pay attention to the questions and practice your answers prior to pitch time We can learn a lot about your business from the way you answer questions Never lie - if you donrsquot know the answer say so and use this as an opportunity to follow up with the investor Give your audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action - ie your financial ask if yoursquore fundraising or an invite to a trial of your product if yoursquore making a customer pitch audience a compelling repeatable story to take away Reinforce the core strengths of your business and make sure you have a call to action
PRACTICE THAT PITCH ndash LAURA REITEL
C O N T I N U E D hellip
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
TU
P I
NS
IGH
T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
IND
US
TR
Y I
NS
IGH
T
Donrsquot try and be something yoursquore not If you are authentic yoursquoll be much better at demonstrating the passion you have for an idea to the audience Write your pitch in the way that you naturally speak While you need to make the pitch entertaining donrsquot overdo it - think of this as theatre not pantomime
Practice Practice PracticeAnd when you think yoursquove practiced enough do it again Practice by yourself and in front of people Pay attention to the questions you get and take note of things that your audience didnrsquot understand Then iterate your pitch based on that
Who is your audience What does the audience care about How are you going to make them money (if theyrsquore investors) How are you going to save your audience time (if this is a customer pitch) Cater to your audience - think about why yoursquove spent the time developing your product and tell the audience that story
Define your goalThink about why yoursquore pitching
If itrsquos an investor pitch you need to be interesting enough to get a follow on meeting with an investor
If yoursquore pitching to increase interest towards your productservice - entertain tell a compelling story
Leverage your slidesPeople will either listen or theyrsquoll read Very few people can do both Slides should be there to enhance your points not distract from them For the last slide leverage that real estate - show your product logo and contact details
Remember the Rule of Three Audiences will only remember two or three things from your pitch So make those three points stand out - donrsquot be afraid to repeat the message a few different ways One way wersquove seen teams do this is Tell them what yoursquore going to tell them Tell them Tell them what you told them
5 RULES OF PITCHING
ST
AR
TU
P I
NS
IGH
T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
ST
AR
TU
P I
NS
IGH
T
WHERE DID GEO AR GAMES START OUT amp WHAT IS THE VISION FOR YOUR BUSINESS
Before my co-founder Amie and I decided to get serious with my idea of developing a digital playground we took about 2 months to intensely research the market and get clear what we were building our visionmission statement and ensuring that there was a market for our idea We had an idea for an outdoor game called ldquoSharks in the Parkrdquo which was in some ways similar to Pokemon Go but using a more advanced technology Our mission statement is to get kids off the couch and physically active outside through mobile outdoor AR games
We applied for the Chilean pre-accelerator S-Factory which is part of Startup Chile a famous international business incubator in South America We got accepted and with that got granted $20K equity free money to investigate our idea based in Santiago Chile We had our first pitch experience there and put a lot of effort into the slides explaining the problem and solution and eventually we got to pitch to 3 judges but just for feedback After 3 months at S-Factory we moved directly to Lightning Lab XX in Wellington which gave us a further $20K for 6 equity to get ready to pitch for investment Looking back I think we were naive to think that we would be able to impress investors enough to part with money right away Sure that may happen to some startups early on but it is not the norm
PERFECTING YOUR PITCH
M E L L A N G L O T Z G E O A R G A M E S
We spoke to CEO amp Founder of GEO AR GAMES Mel Langlotz about the art of pitching your startup in New Zealand and abroad
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
hellip So at Lightning Lab we got to refine our strategy and someone asked us how people will find us on the App Store or Google Play store This question was key to bringing in revenue So we started to develop our 2nd product Magical Park which is a digital playground councils subscribe to in order to turn a selected normal urban park into a magical wonderland that gets tech savvy families outside and kids to be physically active By now you can find Magical Park across Australasia and we will release a premium version of Sharks in the Park later in 2017
HOW MUCH PREPARATION GOES INTO A 5ndash7 MINUTE INVESTOR PITCH
By now we have a range of prepared pitches and presentations which we can chop and change to suit We worked on our first 3 pitches for weeks memorising the script and working on slide details I learned very fast though that if you are in front of investors who will ask you tough questions afterwards it helps to go last in the pitch order and watch other pitches first Get an idea what the key concern for the people you pitch to is or what level of technical understanding they have and then be prepared to change your script on the fly if you feel you are missing an important point or are too wordy in your intro of the problemsolution scenario If possible ask your angel investors if you can sit in on a pitch and watch listen learn note the questions they ask and get familiar with the dynamic in the room
hellip In the end they all want to know how are you making money do they believe it is a problem worth solving Is there is a market and how fast and realistic is your growth projection
By now we have done so many pitches that I am comfortable to pitch to anyone anytime You have your key phrases and convincer sentences and you need to be able to deliver them with confidence If it is a big pitch like when we went to China ndash I do write a script and learn it because especially in front of a foreign audience where your pitch is being translated on the fly by an interpreter you need to make sure every sentence is clear and easily understood or the translation will be garbled and make no sense what so ever to the Chinese investors To give you an example ndash the word augmented reality doesnrsquot exist in the Chinese language and was creatively translated as ldquoearth-space-technologyrdquo For China I took a day to learn my script and deliver in the right pace (super slow to give the translator a chance) and we spent a week working on what to say within the 10min we had
But even if we were to deliver a pitch in another English speaking country I would ensure that I would use the correct English terms for that location so that it is easily understood and people can relate to what I say without wondering about kiwi expressions Technology terms are another thing to be mindful of If you have a tech startup or work in an industry that has got professional terms that are second nature to you they may not mean anything to someone else We have pitched to people who didnrsquot know what iOS and Android meant
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
ME
NT
OR
IN
SIG
HT
YOU PITCHED YOUR BUSINESS LATE 2016 IN CHINA WERE THERE CULTURAL DIFFERENCES TO BE AWARE OF WHEN PITCHING YOUR BUSINESS ABROAD
I wrote an entire blog about doing business in China (And then we went to China) and the key difference I mentioned earlier is that you have to deal with translators who will struggle to translate the essence of your startup It almost pays to have something written up and translated in advance and give the translator to quickly read so they have an idea what this is going to be about and how to translate it
Make sure you get someone who is fluent in both Chinese and English to check your pitch and the subtitles of your slides or videos Sometimes translations can be seriously clunky and come across the wrong way I had 3 of my Chinese friends explain our startup back to me after reading our Chinese marketing material and it showed which sections were unclear unprofessional translation or even had grammar mistakes in them See if they get it and what questions they have You will be surprised what cultural issues may come up you havenrsquot considered at all but which may be obvious to your friends ie our business is about turning urban parks into digital playgrounds Well in Beijing for instance the parks are so crowded you wouldnrsquot be able to play
Be mindful that Chinese investors will always expect you to move to China and set up shop there Are you prepared for that Also remember that most Chinese investors are looking for a finished product that can be relabelled and sold as is They often are not interested
WHY IS IT IMPORTANT TO BE ENGAGING AND IMPRESSIVE WHEN PITCHING
Everybody likes to be entertained and it makes it easier to remember the content If you are not the only startup pitching then it is even more important to stand out and ensure that your presentation has got the sticky factor Repeating certain key words or messages you want your audience to remember helps but also to be upbeat charismatic and delivering with balanced body language tone volume pitch and pauses for effect
Make sure you donrsquot do say or wear anything that is too distracting Some people waive their arms around or canrsquot stand still and get into some sort of nervous dance or keep saying ldquoumrdquo or ldquolikerdquo ldquoyou knowrdquo or they donrsquot realise they stick their hands in the pockets cross their arms or donrsquot make eye contact with the audience Make sure you wear something that is slick and elegant but not distracting Make sure it is comfortable and if you think you might be nervous wear something that doesnrsquot show you sweat )
Here is something that helps me when I pitch So I donrsquot like scripts because I struggle to be charismatic and inspire people and connect with my audience When I prepare a pitch I think about my audience and what would excite them and then think about my pitch as a story The story has to flow in my head and it has to link from one subject to the next effortlessly I know my company better than anyone else and confidence in a pitch delivery is key So make sure you have your story straight Think about it as a story you would want to ldquoWowrdquo someone with but with the ldquowowrdquo factor being the incredible opportunity and the revenue that can be earned How would you package that and build it so it sounded exciting Investors want to be entertained So give them what they want
Make sure you donrsquot talk to fast and monotone Stress the right keywords find good moments to put in a pause to let information sink in Think less is more They can always ask questions but give them enough that they are hungry and think this is an awesome opportunity not to be missedST
AR
TU
P I
NS
IGH
T PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
ST
AR
TU
P I
NS
IGH
T
in raw materials or something that doesnrsquot quite fit the market and needs modification Contracts work differently in China and reflect a moment in time but are not taken as seriously as in our Western World where they are binding
In a nutshell only go to China to pitch if you really think thatrsquos the market you want to be in A lot of western investors will lose interest in your product if you have sold in China and have no strong patents The reason being that your idea may be easy to copy which China is known for and therefore your idea wouldnrsquot be original anymore
If you are like us and you donrsquot worry so much about investment because you donrsquot want to part with equity and are happy to take the risk in order to bring in revenue to grow the company then go for it By the way we will not relocate to China but have found a local Chinese company in Auckland who we trust and who is facilitating business in China for us and will facilitate the local presence in China on our behalf
WHAT ARE SOME OF THE KEY DIFFERENCES BETWEEN PITCHING TO CUSTOMERS SPONSORSPARTNERS AND INVESTORS
Pitching doesnrsquot always mean you are looking for financial investment It could be that you are pitching to find a joint venture partner someone who would buy your company sponsors partners or customers The main difference is where your value proposition lies depending on your audience So an investor will want to see proof of growth and that there is a market A sponsor may want to focus on who the team is whether there
are marketing opportunities more about your company values as well as your business model and sales verticals etc Someone who is interested to buy your company will want to know where you think the value of the company lies That could be the revenue or the customer database the data you gather or IP your company holds A customer in our case the council or parents will want to know our game is safe easy to install in the park and good for kids
Sometimes it is also important to be aware of the technical understanding your audience has We have learned to scale our language down and not assume even the most common terms like Android iOS or Google Play store can all be terms we may need to explain So we will tailor the content of every presentation and every pitch based on the audience their needs andor most burning questions
WHAT IS THE MOST CHALLENGING ASPECT OF PITCHING
Having proof that what you say or claim is true Itrsquos the hard work that goes into getting the numbers and figures that show your company is valuable not just on the face of it but even when you dig into the numbers We present stats how many people are using our game during a certain time frame how long they play for our revenue growth curve but also how many new councils are signing up every month or how many new parks we are setting up Your pitch may not represent a hockey stick growth curve investors are after but it may have other appeal like you have developed a disruptive technology or service and especially angel investors like to get in on a deal early Can you prove that now is the right time for
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
ST
AR
TU
P I
NS
IGH
T
mdash GEO AR GAMES WENT THROUGH LIGHTNING LAB XX 2016
GEO AR GAMES GETS KIDS OFF THE COUCH AND PHYSICALLY ACTIVE OUTSIDE THROUGH MOBILE OUTDOOR AR GAMES
PERFECTING YOUR PITCH ndash MEL LANGLOTZ GEO AR GAMES
C O N T I N U E D hellip
an investor to come on board
TELL US YOUR TOP 3 PITCH HACKS
bull Think about your pitch as a story you want to tell Your purpose is to inspire not to sell no one really wants to be sold to
bull Start every pitch with a few statements to break the ice use something everybody has to agree to in their mind
bull Repeat your company name a few times during the pitch but especially at the end so investors wonrsquot forget
bull Make sure your slide deck is slick strong and vibrant This helps people memorise what is being said
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
OTHER RESOURCESldquoWhat do angel investors like me look for in investable early-stage companies Convince me to invest in your startuprdquo
DAVE MOSKOVITZ CONVINCE ME TO INVEST IN YOUR STARTUP
ldquoPitching is about understanding what your customer (the investor) is most interested in and developing a dialogue that enables you to connect with the head the heart and the gut of the investorrdquo
GARAGE TECHNOLOGY VENTURES PERFECTING YOUR PITCH
ldquoFrom time to time I get asked to perform technical due diligence on investment opportunities This is for software companies once they get some traction from investorsrdquo
DAVE MOSKOVITZ TECHNICAL DUE DILIGENCE CHECKLIST
ldquoLuckily I have traced patterns in what the greatest triggers are to wow an audience and win that next customer investor or employeerdquo
AJ ARGAWAL 3 WAYS TO PERFECT YOUR PITCH
ldquoPitching is one of the most important skills every entrepreneur must learnldquo
RICK SPENCE PITCHING FOR PROFITS Delivering a Presentation Investors Love
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz
This resource is brought to you by
NZrsquos innovation experts
wwwcreativehqconz