A VERY SPECIAL HACKATHON FOR CREATORS, DISRUPTORS AND INNOVATORS.

ZUBIN DAVARLAHORE, PAKISTAN

JULY 25, 2015@ZubinDavar

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MY STORY

Born & Raised in CA

Why I love tech

B.A. & M.B.A @UCLA

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Career

• 4 BASES FOR IDEA GENERATION• THE FEASIBILITY FRAMEWORK• WHAT VCs LOOK FOR• 60 SECOND PITCH

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4 BASES FOR IDEA GENERATION

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BASIS 1: PRODUCT SHOULD BE MORE“NEED TO HAVE” THAN

“NICE TO HAVE”.

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BASIS 2: IT’S OK IF IT’S NOT FOR EVERYONE.

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BASIS 3: CONSIDER THE COMPETION

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BASIS 4: DREAM BIG……BUT BE PRACTICAL.

CONSIDER THE FEASIBILITY!!

WHAT IS A FEASIBILITY FRAMEWORK?& WHY DO WE USE IT?

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• Process for determining viability – can you pull it off?• Foundation for a compelling business plan• Understand the financial implications • Address key risks

There is no universal format!

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Feasibility FrameworkBusiness Concept• Problem• Solution• Management• Key Risks - product, management

Marketplace • Market overview • Target market & value proposition • Competitive matrix, differentiators• Key risks - market, competitive

Financials• Startup costs & overhead• Revenue estimates• Business model - primary and any secondary sources of profit• Feasibility financial model

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• The Problem – what are you trying to solve? And why do people care?

• Solution – why is it right?

• Management – why are you the right person/team to do this?

Questions that your biz concept must answer

Business Concept

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Marketplace

i. Market Overview – size, growth, key players, etc. **Logically back it up **consider top-down and bottom-up market sizing

ii. Target market & value prop (to that market)

i. Understanding your target market….really

iii. Competitive matrix, differentiators

iv. Key risks – market, competitive

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Financials• Startup costs & overhead• Revenue estimates (based on market size & target)• Biz model – primary & secondary sources of profit• Feasibility of financial model

**Keep in mind that it’ll take longer to gain a customer, and it’ll cost more!

Important financial indicators: (know these!)• Break-even point: Break Even Point = Fixed Cost / (Price – Variable

Cost)• Burn rate• Margins & contribution• Time to cash-flow positive

WHAT ARE VCs LOOKING FOR?

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The Big 3 Buckets 1. MANAGEMENT TEAM• Domain expertise, experience, passion, level of “high

quality” • Determined based on references, on talking with you,

can you make them $$? 2. MARKET• How big is the market? How fast is it growing? What’s

the competitive environment look like? • Is the market size logical? • Most investments are on a 5-7 year horizon.

3. HOW UNIQUE IS THE BUSINESS? • What are you doing to establish a differentiating

leadership position?

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• Concept: identified a problem/described a solution

• Competition: how you’re differentiated

• Business Model: how do you make $$?

• Target Market • Team/Experience• Consumer Acquisition Strategy • What stage of development are

you in?

THE FUTURE IS YOURS. NOW GO MAKE IT!

THANK YOU