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S The Funding Game David Tran | Co-Founder / COO of NhomMua.com
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Page 1: DavidTran-kinhnghiemgoivon

S

The Funding GameDavid Tran | Co-Founder / COO of NhomMua.com

Page 2: DavidTran-kinhnghiemgoivon

Do you need the money?

Funding important for scaling, intensive capital needs, accelerating growth

Funding much easier to get after proving concept (valuation also higher)

Not all startups need outside funding

Advice: Go as long as you can without asking for money

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GoPro

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GoPro

HD sports video cameras

Low cost HD Wearable Sports Camera

Sold shells from VW bug to get 10k USD for first patent

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SmugMug

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SmugMug

Multi-gigapixel photography

Like Flickr but high quality

Self-funded

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PCH

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PCH

Located in Shenzhen, China

Huge supply chain company

Needed $200k USD to build circuit boards

Banks, VCs, turned them down

Founder Liam Casey asked factory to build it for him first

Offered his passport as collateral

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Do you need the money?

Hustle, hustle, hustle

Build prototype, demo, proof of concept before asking for money

If possible, find a way to acquire customers, get real world data, then seek money

If cash-flow is business supporting, may not need funding ever

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Looking for money

Ideas are a “dime a dozen”

Investors want to know your team can pull it off

Management team covers all needed areas to succeed Technology / Development, Marketing/Sales/Business

Prove the concept with real customers Go out there and get customers with your product “Pivots” are essential | Your original ideas rarely work

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DropBox

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DropBox

Total VC capital funding of 257.2 MM USD

Valuation possibly > 1 Billion USD

Annual revenue > 240 MM USD for 2011

Very interesting method of getting initial funding

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DropBox

Founder Drew Houston originally use “Customer Development” methodology by Steve Blank Customer Development process Talking to customers Using feedback to develop and refine product

Then, Drew Houston had an animated video created of a product that did not exist

Shopped the video to investors as “alpha version” and got funded … then built the product.

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Summary

Ideas are just ideas

You need to execute and test the market, to know what’s out there

At least have working prototype to show people, get feedback loop (Customer Discovery)

Real data (proof) trumps all funding at that point is just to scale a working model