ideation bootcamp - week 1 - big idea, markets and problems
TRANSCRIPT
![Page 1: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/1.jpg)
Ideation Bootcamp
![Page 2: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/2.jpg)
About Mentors
Joel Espelien
• Entrepreneur & Founder • VP Strategy & General Counsel
for Packet Video • Mentor for Tech Stars and
Founder’s Co-op
Dave Parker
• Director, Seattle Founder Institute • Entrepreneur • Board Member Guidant Financial • Former Board Member
Classmates.com
![Page 3: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/3.jpg)
Agenda:
• Week 1- Big Ideas/Markets/Problems – Introductions – Market– Problems – Ideas– Q&A – Working Groups – Homework
![Page 4: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/4.jpg)
Weekly Format
• 6:30 – Food/beverages • 6:45 – Introduction to topics & mentors • 7:00 – Content 1 • 7:30 – Content 2 • 8:00 – Q&A • 8:25 – Break • 8:45 - Working Groups• 9:15 – Home work
![Page 5: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/5.jpg)
• Big Ideas – Big Markets – Big Problems – With Joel Espelien
• Venture Ready Research, Target Markets & Models– With David Bluhm
• Validating your idea: tools and methods – With Justin Wilcox
• Communicating your idea (without getting lost in the details)– With Joanna Lord
![Page 6: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/6.jpg)
Week 1
![Page 7: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/7.jpg)
So You Have a Startup Idea?
Joel Espelien - @EspelienJBDave Parker - @DaveParkerSEA
#SEFI@Founding
![Page 8: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/8.jpg)
Ground Rules:
• Don’t be afraid to share your idea!• Ideas don’t matter – feedback, execution and
iteration do• You have more to gain than to lose• Nobody is going to steal your idea• Don’t ask an Investor to sign your NDA
![Page 9: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/9.jpg)
SurveyExisting Business?
Tech Business?B2B?B2C?
Seeking Investment?
![Page 10: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/10.jpg)
What Investor Look For
• Big Market/Idea/Problems• Team that can execute • Scalable Product • Traction – Customer, revenue, users
![Page 11: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/11.jpg)
Markets
• Who Buys from You?• Business to Business • Business to Consumer• Established vs. Immature • What is a Market?
![Page 12: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/12.jpg)
Source: Dow Jones VentureSource
Amou
n t I n
vest
ed
($B)
Num
ber of Deals
Investment Falls in 2012Deal Flow and Equity into Venture-Backed Companies
$23.6 $25.1
$31.1$34.5 $33.1
$24.3$29.3
$35.1
$29.7
24622627
28593110 3049
2759
31163506
3363
0
1,000
2,000
3,000
$0
$10
$20
$30
$40
$50
2004 2005 2006 2007 2008 2009 2010 2011 2012
Amount Invested ($B) Number of Deals
![Page 13: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/13.jpg)
Source: Dow Jones VentureSource
Industry Allocations Steady in 4Q’ 12 Deal Flow Allocation by Selected Groups
% D
eal F
low
Al
loca
tio n
29% 25% 24% 22% 24%
34%34% 38%
38%
16% 21% 23% 20% 20%
17% 16% 18% 17% 15%4% 5% 2% 2%
0%
20%
40%
60%
80%
100%
4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12
Energy &Utilities
Business &FinancialServices
ConsumerServices
InformationTechnology
Healthcare
![Page 14: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/14.jpg)
Source: Dow Jones VentureSource
Software Loses Pace in 4Q’ 12IT Investment Allocation by Sector
% o
f D
o lla
r s
Inv e
sted
47%
65% 62%70%
59%
30%
12% 18%8%
22%
14% 14%16% 15%
15%10% 9% 5% 7% 3%
0%
20%
40%
60%
80%
100%
4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12
Semiconductors
Electronics &ComputerHardware
Communications& Networking
Software
![Page 15: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/15.jpg)
Big Markets?
• Is the Market in Billions?• Specific Opportunity for VC >$100M • If you own the market how big would
your be• Market Leader vs. First Mover • Known or unknown
![Page 16: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/16.jpg)
Big Ideas?
• Changes the world • Simple • “Aha” idea • Transformational
• Changes a market • Complex • Feature or tool • Incremental
![Page 17: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/17.jpg)
Big Problems
• Pain Pill? Have to have it• Vitamin? Nice to have• Who wins if you win?• Do they “win big” or “save a little”?
![Page 18: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/18.jpg)
It’s takes as long to build a small idea as big idea
![Page 19: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/19.jpg)
• Passion!
• Ideas!
• Product
• Doesn’t make it a great business
• Execution
• Company
![Page 20: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/20.jpg)
Explain Your Idea
![Page 21: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/21.jpg)
I want to develop
to help
(solve a problem)
(with secret sauce)
(a defined offering)
(a target audience)
Idealibs for Startups
![Page 22: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/22.jpg)
The Offering
• Be Specific– “a social utility" vs "an ecommerce website"
• Avoid Buzzwords– "mobile social CRM" vs "an iPhone application"
• Skip the Adjectives and Superlatives– "a revolutionary service" vs "backend software"
![Page 23: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/23.jpg)
The Audience
• Identify Demographics– "female consumers" vs ”new mothers"
• Specify Your Market– "artists and musicians" vs "unsigned alternative bands"
• Clarify the Buyer– "large businesses" vs "purchasing managers at
multinational companies"
![Page 24: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/24.jpg)
The Problem
• Make sure everyone can understand the offering.• Hint at a viable revenue model.
– "find deals online" vs "shop for hip baby products at wholesale prices"
![Page 25: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/25.jpg)
The Secret Sauce
• Explain what makes your business unique.– "faster" vs "with automated ordering for diapers and other
staples”
![Page 26: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/26.jpg)
Q&A
![Page 27: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/27.jpg)
Working GroupsHomework
![Page 28: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/28.jpg)
7 Rules to Judge Your Idea
![Page 29: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/29.jpg)
7 Rules
1. Simple ideas win2. You have one revenue stream3. Name your customer4. Make something explainable5. Small markets suck6. Mix in secret sauce7. Be original
![Page 30: Ideation Bootcamp - Week 1 - Big Idea, Markets and Problems](https://reader034.vdocuments.net/reader034/viewer/2022042619/58e7b48c1a28abbb4e8b5247/html5/thumbnails/30.jpg)
Contact Info
• Dave Parker – [email protected] @DaveParkerSEA
• Joel Espelien – [email protected]@EspelienJB
• Daniel Rossi – [email protected] @nwen-org
• Caitlin Goetze – [email protected]