Aaron Patzer, Founder & [email protected] 23, 2010
How to take your startup to the next level
Idea to $170m exit in three years
+
Aaron = Geek … with accounting skills
Duke: EE / Comp. Sci.Princeton: PhD
Dropout
Financial + ManagerialAccounting
3 Phases of Startup Life
1. Garage (<$100k) Validate an idea Create a prototype
2. Seed (<$1m) Launch an alpha product Trial customers
3. Funded (>$1m) Scale system Scale users Scale revenue
Garage: Rapidly Validate an Idea
Original Idea: Goal setting software
Money component resonated...
Talked to 50-80 people(don’t be secretive)
Garage: Goal = Prototype
Prototypedevelopment
IdeaMarket ResearchBusiness Plan
Pre-revenue Valuation:
+$500k / engineer
-$250k / business guy
Result: Mint UI in July 2006
Garage Seed: Raising Funds
1. Solve a real problem2. In a large market3. Real revenue potential4. Sustainable advantage
Seed: Proving revenue…before you have any
2007 2008 2009 2010
$1m
$10m
$50m
Revenue projections will be bullshit (see below)Per transaction / per user rev is more importantAnd a huge market opportunity…
Mint - Money Intelligence
Consumers
Competition:Competition:Quicken & LowerMyBillsQuicken & LowerMyBills
US User Base(millions)
2
20
65
LowerMyBills /Uswitch
Quicken / Money Online Banking
• Difficult to use• Costs money: $30-
70• Does not save or
make user money
4 of 5 quit within one month
Save money, but…
• Manually search for deals
• No insight into your finances
Original Mint late 2006 slide
Lead-Gen & CPA Lead-Gen & CPA Opportunity: Opportunity: $30+/user/yr$30+/user/yr
Category Where on Mint
CPA Revenue
FrequencyOf Action
User Adoption Rate (%)
= Goal Rev User / Year
Credit Score WTS $36 2 yr 20% $3.60 Credit Cards WTS $60 2 yr 10% $3.00 Check/Save WTS $30 2 yr 10% $1.50 IRA Center $100 3.5 yr 5% $1.40 Brokerage Inv/WTS $200 Once 5% $2.00
CDs WTS $30 Once 10% $0.60
Daily Savings Txn $1.50 1 mo 20% $3.60
Insurance WTS $15 2 yr 10% $0.75Comm. Services
WTS $50 2 yr 10% $2.50
Mortgage Refi. WTS $200 Once 5% $2.00Travel Goals $50 2 yr 10% $2.50Home Improve Goals $200 Once 5% $2.00Edu & 529 Goals $200 Once 5% $2.00
= $30
Original Mint 2007 slide
Mint - Money Intelligence
Business Model:Business Model:Referrals & Lead Referrals & Lead GenerationGeneration
• 7% of $16B online ad market
• Fastest growing ad segment Up 160% from 2004 to ’05
(Source: IAB)
• $1.0B in mortgage lead-gen, to triple by 2008(Experian)
20 – 65 M x $30 = $0.6 – 1.8 B
User base Rev/user/yr Mint Opportunity
Lead-Gen
2.1
6.0
2005 2008 est.
Billion
($
US
)
Advertisers
Original Mint late 2006 slide
Seed Result: Mint AlphaSeed Result: UI in April 2007
Funded: Scaling People
Most hire haphazardlyTrain yourself to hireHire better than you…then let them work
Funded: Beta Big Launch
Started blog ecosystemPrivate beta builds demandUse exclusivityUser feedback is key!
Beta Product: Jul – Sep 2007
Funded: The Big Launch!
Venue: TechCrunch 40Aggressive PR – hire an agencyHave a presence
Mint wins!
Mint Today
