University of California Center for Accelerated Innovation · Startups Fail Because They Confuse Search with Execute . Customer Development . More startups fail from a lack of customers

LEAN LAUNCHPAD

FOR LIFE SCIENCES

AND HEALTHCARE

University of California Center for Accelerated Innovation

Stephanie Marrus NSF I-Corps National Faculty Director, Entrepreneurship Center at UCSF

NSF/NIH Innovation Corps

• National innovation ecosystem based

on Lean LaunchPad framework • Over 400 teams, 100 institutions

Entrepreneurship Center@UCSF

The Problem: 90% + of Startups Fail

Top Reasons Startups Fail

1. The market. Value proposition.

2. Business model failure. Customer acquisition.

Product/market fit

http://www.forentrepreneurs.com/business-models/why-startups-fail/

Science/Technology Development

Write Business Plan

Seek Funding

Search for Customers/Partners

Traditional Entrepreneurship Process

“Faith-Based” Approach

• I have an amazing opportunity

• I have data

• I’m smart and passionate

What more do you need to know?

Lean LaunchPad’s “Evidence-Based” Approach

Identify the Problem/Solution

Test with “Customers”

Validate Solution is Valuable People Will Pay $

Build a Minimal Viable Product

Test Again

What we Thought: Startups are Small Big Companies

What We Now Know

Startups Search for a Business Model

Companies Execute

What We Used to Believe

Start With a Business Plan , Operating Plan

and Financial Model

All I Need is the 5- Year Forecast

What We Now Know

Planning comes before writing the plan

Business models are dynamic

Plans are static

Startups Are Not Smaller Versions of Large Companies

A Startup is a temporary organization

designed to search for a repeatable and scalable

business model

Startups Are Not Smaller Versions of Large Companies

Large Companies Execute Known Business Models

Startups Are Not Smaller Versions of Large Companies

Startups Search for Unknown Business Models

Startups Fail Because They Confuse Search with Execute

Customer Development

More startups fail from a lack of customers than from

a failure of product development

Founders Run a Customer Development Team

No sales, marketing and business development

Business Model Canvas

©2011 Stephanie K. Marrus

• Pharma • Biotech • CRO • FDA • Supplier

• FDA • IP FTO • Manufacturing

• Product benefit • Market • Competitive

position

Hospital Pharma DTC Mobile

User Payer Hospita Insuran co. Influenc Saboteu

How to create demand KOLs Patients SAB

Preclinical Clinical trials Manufacturing Royalties

Partnerships Investors Consulting

9 Guesses

Guess Guess

Guess Guess

Guess Guess

Guess

Guess Guess

What We Do in Customer Development

1. Find out the Problem

2. Test the Solution

You will do at least 10 interviews per week ~ 75 interviews !

Frame Commercialization Hypotheses

• Customer? • Product? • Value proposition? • Product/market fit? • Payer? • Reimbursement ? • Regulatory path? • IP landscape? • Partners?

Update Business Model Canvas Weekly

Use Canvas As a Weekly Scorecard

Week 3

Week 2

Week 1

You May Have to Pivot

Flipped Classroom Lectures on Udacity

Build a Minimal Viable Product (MVP)

Work in a Team

Class Simulates a Startup

• Pressure, uncertainty, challenges • Fail fast, learn quickly, pivot • Go outside your comfort zone • Deal with unreasonable expectations

Metrics: LaunchPad Central

Videos

• http://www.slideshare.net/sblank/bcn-biosciences-icorp-nih-video-121014?qid=7913d083-caba-4e8a-a022-02721beab277&v=default&b=&from_search=23

• (NIH Team)

• http://vimeo.com/groups/213077/videos/81146693

Class Start Dates

Preliminary Schedule

• Application deadline 1: April 1

• Application deadline2: April 6th

• Preliminary Screen: Week of April 12

• Video interviews: Week of April 27