Class 6 / 12

March 10, 2014

Jen van der Meer | jd1159 at nyu dot edu

Josh Knowles | chasing at spaceship dot com

LEAN LAUNCHPAD AT NYU ITP

Rockets Sketches borrowed from Harry Allen Design

6:00 – 6:45: Activities, Resources and Costs

6:45– 7:30 Workshop set up Ajay Revels – Customer Development Deep Dive

7:30 – 7:45 Break

7:45 – 8:55 Teams Present

TODAY:

MIT Hacking Medicine hackathon at WebMD April 4th-6th.

NYC Innovate Schools• We help early-stage edtech developers:• Understand the key problems facing NYC schools and get validation on

potential solutions.• Navigate the processes of procurement, contracting and IT compliance.• Connect with innovative iZone schools who are interested in piloting

exciting new technologies.

UPCOMING + RESOURCES:

.

WE ARE HERE

1/27Business ModelsCustomer DevelopmentUX Tools Intro

2/3Value PropositionUX Tools, Frameworks

2/10Customer SegmentsResearch Tools

2/17President’s Day

2/24Revenue StreamsDistributionProduct Definition

3/3Customer RelationshipsPartners,Product Development

3/10 Resources, Activities, Costs,Product Development

3/17Spring Break

3/24Customer DevelopmentProduct Development

3/31Customer DevelopmentProduct Development

4/7Customer DevelopmentProduct Development

4/14Customer DevelopmentProduct Development

4/21Product MVP

4/28Lessons Learned

Financial

Physical

Intellectual

Human

KEY RESOURCES

Financial

Equity

Friends Family

Angel

VC – growth

Social impact investing

Equity Crowdfunding

Convertible Debt

Debt that converts to equity

Debt

Small business loans

Trade finance

Working capital debt

Line of credit

Non dilutive grants

SBIR, STPR grants

Open Innovation prizes (XPRIZE, Kaggle)

Social impact foundations (RWJF)

Project Crowdfunding

KEY RESOURCES: FINANCIAL

NEW SOURCES OF FUNDING – AMERICA COMPETES ACT

NEW SOURCES OF FUNDING – SEC CHANGES

OPEN INNOVATION– PRIZES AND PULL MECHANISMS

Public open innovation – Federal agencies encouraged to call innovators to a challenge, look for the brightest minds and the best ideas, seek a diversity of solutions, and incentivize those solutions with the highest performing outcomes.

Private sector open innovation – Companies are recognizing the complexity of business and that the best ideas lie outside their organization. Prizes and open innovation exercises are proliferating in all sectors. Often these are non-dlllutive, but beware those programs that are for marketing/branding reasons, or where there is IP or first right of refusal claims in the terms.

NGO open innovation – Foundations and philanthropic organizations are growing faster than for profits, and to incentivize the freshest ideas and solutions, “pull mechanisms” are used to bring forward the best ideas, and reward those that demonstrate the strongest outcome.

Office building/office

Factory/processing

Vehicles

Machines

Hardware

Raw materials/ingredients

Components

KEY RESOURCES: PHYSICAL

KEY RESOURCES

Co-founders

Employees

Contractors

Development firms, contract manufacturing

HUMANS – COMPANY

Mentors – make you smarter about your career

Teachers – provide specific subject matter expertise

Coaches – help you achieve a goal

Advisors – help you make your company succeed

Board members – help the investors succeed

Surround yourself with people that give critical feedback, and help you through a major founder failure point – when you believe your vision is fact.

HUMANS – MENTORS, ADVISORS

Developer/engineer

Designer

Marketer

Scientist

Community manager

When do you need a CEO?

A CFO?

An HR person?

A VP of Sales?

A Chief Revenue officer?

TALENT

Income statement

Balance sheet

Cash flow

Are these the financials you need to understand?

Yes, because it’s the language investors speak, and it’s good to understand the flows of financial reporting –but this is a system used to compare financial performance for investors.

These do not supply execution metrics to help you make decisions and formulate/test hypotheses.

COSTS

COSTS – EXECUTION METRICS

Viral coefficientCACLTVConversion rateRetention rate

What are vanity metrics?

Registered users, downloads, and raw pageviews. A mobile apps could have millions of downloads but only a few hundred thousand active users, or a freemium website might see exploding traffic growth but barely any conversions to paying users. They are metrics that make you feel good, bad for guiding execution.

What metrics will drive you through MVP?

COSTS – EXECUTION METRICS

UNIT ECONOMICS

21

WHAT CAME BEFORE STEVE AND ERIC

FOR NEXT TIME3/24/14

.

POST BREAK PREP:

We’ve toured the canvas.

But you’re not done.

For March 24: Prepare to run through the canvas:

• What is your clear value proposition, how have you validated.

• What segment(s) are you pursuing, how have you validated.

• What resources will you need to get to MVP, and what are the costs?

• What other key elements of the business model canvas do you need to test.

• What remaining hypotheses do you have?

We are here for you, all of the mentors and advisors. Please reach out even if you don’t think you need help.

NEXT: CANVAS REVIEW AND FEEDBACK

APPENDIX

Jen van der Meer, Adjunct Professor at ITP since 2008 ITP courses + workshops: Bodies and Buildings, Products Tell Their Stories, ITP VC Pitchfest, . Currently: Luminary Labs, Angel Investor, Health Data Challenges, Judge for startup competitions, + SVA PoD

Josh Knowles, ITP ’0715+ years as an independent developer/consultant, working with numerous brands and start-up clients (currently under the aegis of Frescher-Southern, Ltd.)

ITP TEACHING TEAM

STUDENT TEAMSTeam Name School

Cognitive Toy Box Lindsey Jones Stern

Tammy Kwan Stern

Hsiang Huang Stern

Alternative Monuments Rodrigo Derteano ITP

Maximo Sica ITP

Ajejandro Puentes ITP

Alon Chitayat ITP

NYBL Sam Slover ITP

Shilpan Bhagat ITP

Max Ma ITP

DiscoverEd Sergio Majluf ITP

Su Hyun Kim ITP

Christina Yugai Stern

Yuliya Parshina Kottas ITP

MENTORS + TEAMS

Tom Igoe @tigoeITP, Arduino, Making Things Talk, NYU ITP Pitchfest

Alternative Monuments

Julie Berkun Fajgenbaum @julieFStern Adjunct Professor, Former VP Amex Open, now startup co-founder

NYBL

Michael Levitz @michael_levitzITP grad, R/GA, Lean

DiscoverED

Sarah Krasley @sarahkrasleyAutodesk, Sustainability, Berkeley

For everyone

Chris Milne @greedo1000IDEO, Toy Lab, Stanford, LEGO

Cognitive Toy Box