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Business model refinement and
introduction of external funding
At the Durban #Agrihack session on November 29th 2015
Presentation by John Kieti
twitter: @JohnKieti
A startup is a temporary organization
formed to search for a repeatable and
scalable business model
~ Steve Blank
A startup is a human institution designed
to deliver a new product or service under
conditions of extreme uncertainty
~ Eric Ries
A business model describes the rationale of
how an organization creates, delivers, and
captures value ~ Osterwalder and Pigneur
Business Model Canvas
Efficiency Value
Adjustments on BM Canvas for Lean Canvas
Lean Canvas Changes on BM Canvas
Source: Ash Maurya
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? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
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founder
Source: Ash Maurya
Useful Reading material from Ash Maurya
practicetrumpstheory.com/2011/08/customer-development-getting-started
Problem
interviews
Solution
interviews
MVP
interviews
GET OUT OF THE
BUILDING!
Lean Methodology for innovation design
The Learning Cycle
CustomersSource: Ash Maurya
Product /
Market
Fit
Problem/
Solution
Fit (MVP)
Scale
Time - Months
$$$ Value
Best time for savvy early
stage investor to onboard
Best time for Startup
to onboard investor
Startups & External Capital
External vs Other Capital
Best form of funding is
revenue from customers !!
Best form of funding is revenue
from startup’s customers !!
Rapid scaling may call for external
capital
Bootstrapping may be from savings
and side gigs
External Capital
Prizes
Grants
Debt
Equity
Instruments
Development Organizations
Corporates (for profit)
Government
Individuals (Angels)
Foundations
Sources
External Capital
Prizes
Grants
Debt
Equity
Instruments
Development Organizations
Government
Individuals
Foundations
Sources
Corporates (for profit)
External Capital
Prizes
Grants
Debt
Equity
Instruments
Development Organizations
Corporates
Government
Individuals
Foundations
Sources
External Capital
Prizes
Grants
Debt
Equity
Instruments
Development Organizations
Corporates (for profits)
Government
Individuals (Angels)
Foundations
Sources
External Capital
Prizes
Grants
Debt
Equity
Instruments
Sources
Development Organizations
Corporates (for profits)
Government
Individuals (angels)
Foundations
External Capital
Prizes
Grants
Debt
Equity
Instruments
Development Organizations
Corporates (for profits)
Government
Individuals (Angels)
Foundations
Sources
External Capital
Prizes
Grants
Debt
Equity
InstrumentsSocial
Returns
Some investment instruments
may demand investor returns
in form of revenue share or
preferential treatment eg. with
dividends, voting rights.
Gifts
Economic
Returns
Philanthropy
Investment
Investors
Source: Ash Maurya
Consider investors as growth
partners. They should bring with
them new business insights, social
capital, and social validation - over
and above financial capital.
Coaches, mentors and advisors
bring and independent, neutral
view of your business model and
its priority areas
Business
Advisor
Source: Ash Maurya
fi.co/madlibs
Our team, (A - startup name)
is developing (B - defined offering)
to help (C - defined audience)
(D - solve a problem)
with (E - secret sauce).
Opening
Sentence
Elevator
Pitch
In Conclusion,
Learn to shut down your laptop, get out
of the building, and discover what
customers really need
@JohnKieti
Let’s further the conversation: