The Lean Startup Model

November 2016 Download this file at <http://files.academicvc.com>

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Boostphase®

Stephen Fleming

[email protected] @stephenfleming

1

The Lean Startup Modelboostphase (büst´fāz), n., 1. The first phase of a spacecraft’s trajectory, from launch until it ceases to accelerate under its own power.

Usage: Small changes to the trajectory during boostphase will have major influences on the ultimate position and velocity of the spacecraft, determining success or failure of the mission.

November 2016 © 2016 by Boostphase LLC. All rights reserved. 2

Agenda

Introduction

The Business Model Canvas

Customer Discovery Process

Lean Startup Operations

Lessons from Silicon Valley

Questions and Answers

November 2016 © 2016 by Boostphase LLC. All rights reserved.

11 years as Vice President, Georgia Institute of Technology.

20+ years venture capital experience. – General Partner, Alliance Technology Ventures

(affiliated with Georgia Research Alliance). – 18 investments as lead investor.

– 12 profitable exits including 4 IPOs, $650M acquisition. – Original investor, Seraph Group.

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About Me


15 years operational experience: - AT&T Bell Labs

Early optical fiber development. - Nortel

Supervised startups developing first ADSL modem and one of the first cablemodems in early 1990s.

- LICOM (venture-backed telecom equipment startup).

BS, Physics, Georgia Tech (Highest Honors).

4

About Me (2)


Agenda

Introduction







Business Model Canvas



Adapted from Business Model Generation by Alexander Osterwalder and Yves Pigneur



The rationale of how an organization creates, delivers, and captures value.


Structure of the Canvas

Desirability



Feasibility Desirability



Feasibility Desirability

Viability


Managing (or investing) in a lean startup model shares a lot of questions with basic journalism.

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The Canvas is a Place for Answers

Who?

What?

Where?When?

Why?

How?

Who? How?

Who?Who?

What?

How? When?

When?

Where?

Who?

Who?

Why?


The scientific method applies to business!

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Turning Guesses into Answers


Make a hypothesis about one element of your business model canvas.

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Testing Hypotheses

???


Develop a controlled experiment to test that hypothesis.

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Testing Hypotheses

???


Now…

Face

-to-Fa

ce

Videoconfere

nce

Phone CallEmail

Email Surve

y

Effectiveness


Agenda

Introduction







Conduct that experiment against real-world customers of your product or service.

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Testing Hypotheses

Don’t sell!

???


“If it disagrees with experiment, it’s wrong… It doesn’t make any difference how beautiful your guess is, it doesn’t matter how smart you are, or who made the guess… If it disagrees with experiment, it’s wrong.”

—Richard Feynman20

The Value of Experiments


Congratulations! You have learned something.

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Testing Hypotheses

???Fact!

Now, do it again.


Do this over 100 times.

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The Big Secret...

(Really.)


“A man who carries a cat by the tail learns something he can learn in no other way.”

—Mark Twain

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There Is No Substitute!


“I find out what the world needs. Then I go ahead and try to invent it.”

—Thomas Edison

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We Knew This Before...


Agenda

Introduction







• Minimum Viable Products (MVP)

• Build-Measure-Learn • A/B testing • Key Performance Indicators

(KPI) • Continuous deployment • Rapid iteration / pivoting

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“A startup is a temporary organization designed to search for a repeatable and scalable business model.” —Steve Blank

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Rapid Iteration / Pivoting

? ? ?

Search Execution

Discover Validate Create Build


“A startup is a temporary organization designed to search for a repeatable and scalable business model.” —Steve Blank

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Rapid Iteration / Pivoting

? ? ?

Search Execution



Investment Timing

? ? ?

Search Execution


Seed Series A Series B


Agenda

Introduction







We’re Not in the Valley


What Worked in the Valley?

H-P’s iconic birthplace.


Free markets Availability of capital Intellectual property protection Collaborative culture & social networks Flexible career paths Welcoming to outsiders & immigrants Meritocratic advancement Acceptance of failure as learning experience Continuous replenishment Of bright young people Of interesting new technologies

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What Worked in the Valley?


Does This Really Work Elsewhere?


Agenda

Introduction






November 2016 Download this file at <http://files.academicvc.com>

Con

tent

s ©

201

6, B

oost

phas

e LL

C. A

ll ri

ghts

res

erve

d.

Boos

tpha

se ®

is a

reg

iste

red

trad

emar

k of

Boo

stph

ase

LLC

Boostphase®

Stephen Fleming

[email protected] @stephenfleming

36

The Lean Startup Modelboostphase (büst´fāz), n., 1. The first phase of a spacecraft’s trajectory, from launch until it ceases to accelerate under its own power.

Usage: Small changes to the trajectory during boostphase will have major influences on the ultimate position and velocity of the spacecraft, determining success or failure of the mission.

Documents

The Lean Startup Model