UMSI Entrepreneurship UMSI 663 Fall /20/2015 Week #11 Nancy A. Benovich Gilby Ehrenberg Director of Entrepreneurship Clinical Associate Professor School of Information

Team Project Overview 1.Form your team, establish ground rules, Interviews round 1 2.Review Customer Development Round 1 and Potentially Pivot, Competition, Market size 3.Review Customer Development Round 2, Pivot? 4.Review Customer Development Round 3, Pivot? KJ Affinity Diagram, Test with Users 5.Design Thinking for initial brainstorming, wireframe test with users, Skeleton of App 6.Business Model Canvas, Front End Screens in Swift (MVP1) and optional, start prototype language 7.Skelton for prototype starting from Parse examples, Dummy Dataset, (MVP2) Draft pitch and Demo Story, Elevator Pitch, 8.Team execution on demo and pitch, finalize script, backend, build app scaffolding, (MVP3), polish 9.All teams pitch and review, MVP prototype (MVP FINAL) 10.Pitch and demo to VCs, Executives, Entrepreneurs Project Week:

How ready are you? Timed for 5 minutes?…. Standups we’ll do a dry run I’ve got my dream team to judge…. 3 VCs, all who have been entrepreneurs, intrapreneur in policy and government, entrepreneur from the medical space, entrepreneur/professor from the mobile learning space

Today Last 2 classes! Last Lecture/Lab, last homework NEXT WEEK ENGAGEMENT CENTER What we’ve learned Which Path, especially if team values centered around social impact? VC’s funding tidbits Review Demo and Pitch requirements TEACHING EVALUATIONS: COOKIES Standup to review details of your trello board work breakdown: –Status on pitch and demo –What you will do these next 2 weeks –What challenges/obstacles In class work on pitch and code

Final Project: Demo You must be able to adequately demo your value proposition It must be CLEAR what your top (3 at most) problems/meaningful items were from your KJ and specifically show in your demo how you are addressing them EVERYTHING else is gravy, you can have dummy screens, dummy data etc etc etc, this is NOT a fully working, ready to hand off MVP

Final Project: Demo/Swift Code Requirements You can choose to do either: –ONE Swift MVP prototype for demo or –BOTH a high-fidelity prototype (Axure, Invision, proto.io) AND a small swift final project (due 12/18) Requirements for SWIFT Final project 1.At least 4 screens with segues 2.Takes information from Parse, puts it on the screen 3.Modifies information and saves to Parse 4.At least 1 working control with an action

Final Project: Pitch 5 minutes pitch & demo: I am timing, my buzzer will ring loud and be annoying 5 minutes of questions/feedback from the judges

Your Presentation Format: 5 Minutes We like business plans that present a lot of information in as few words as possible. The following business plan format, within 15–20 slides, is all that’s needed. 1.Company purpose –Define the company/business in a single declarative sentence. 2.Problem –Describe the pain of the customer (or the customer’s customer). –Outline how the customer addresses the issue today. 3.Solution –Demonstrate your company’s value proposition to make the customer’s life better. –Show where your product physically sits. –Provide use cases. 4.Why now –Set-up the historical evolution of your category. –Define recent trends that make your solution possible. 5.Market size –Identify/profile the customer you cater to. –Calculate the TAM (top down), SAM (bottoms up) and SOM. 6.Competition 6.List competitors 7.List competitive advantages 7.Product Detail & Demo o Product line-up (form factor, functionality, features, architecture, intellectual property). o Development timeline roadmap. 6.Team o Founders & Management o Board of Directors/Board of Advisors

Final Project: Pitch Story telling, pitching HIGHLIGHTS 1.Relaxed and open presence 2.Tested value proposition with data to support, BE CONFIDENT BUT NOT ARROGANT 3.Sustainability model that makes sense (for the funding you will be seeking), Team and Execution Plan

There must be a clear story that you walk through seamlessly in your final Pitch & Demo Incorporate an opening scenario, which sets an urgent narrative, then follow that scenario through in your demo Remember, the most convincing presentations and demos (convincing that your team and your proposition is most likely to be used and to make an impact on those users) will be scored the highest. Make your presentations as indisputable as possible......QUOTE YOUR USERS!!!....use them in building your case!!!

SCENARIO/STORY FLOW PRETEND YOU ARE A GREAT PRESENTOR, visualize someone who is, brevity and clarity, leave very specific details to questions Have everything ready to roll on your mac, get to EC early, I’ll be here to have you test. If you don’t have a mac you can setup on mine and test. (presentation, simulator) You start your presentation with WHO YOU ARE AND WHAT you are going to tell them. (Might be some form of your elevator pitch). We are X, a blah blah, unlike Y which leaves major 3 problems, we will show how we nail it have the team and the plan to knock it out of the park…. You immediately give a clear, “they-can-feel-the-pain” scenario, users, with names “Suzi is a great example of one of 15 target users we interviewed…” You tell your story through the presentation, the demo shows how everything is wonderful now because of your app which NAILS top problems easy/peazy You summarize what they saw that you nailed Suzi’s pain, you’re the dream team and your moving right on to next steps on your timeline 5 mins is up now 5 mins for questions, have your appendix ready

Prepare Your Pitch Deck for Questions (Props for supporting your case) Appendix –KJ –Additional customer quotes, testimonials –Scores (Importance/Satisfaction from Demo scoring) –Anything else that strengthens your proposition Market data Market landscape News/Blog articles in your area

Final Project: Pitch Story telling, pitching HIGHLIGHTS 1.Relaxed and open presence 2.Tested value proposition with data to support, BE CONFIDENT BUT NOT ARROGANT 3.Sustainability model that makes sense (for the funding you will be seeking), Team and Execution Plan

Questions: Again, BE CONFIDENT BUT NOT ARROGANT If they ask something you don’t have a details for, GRACIOUSLY say we haven’t covered that yet in detail but you’d love to get back to them when you do for their feedback AND/OR What do you think yourself about “the question they asked”

On Venture Funding High Stakes, No Prisoners: A Winner’s Tale of Greed and Glory in the Internet Wars Andy Marcuvitz - Practicing venture capital intelligently isn't about avoiding risk, or chasing trends, Marcuvitz believes, but "taking risks in areas where you have strong convictions." There's a "gross deficit" right now, he said, of "people practicing [venture capital] with strong convictions.” /01/andy_marcuvitz_on_venture_capi.html

On Pathway

Entrepreneurial Pathway Which Idea Customer and Value Validation Target User/Customer Urgent Problems Solution must address at least one of top 3 Problems Wireframes, experiments Opportunity Framed Market Segmentation Competition Features Landscape Value Impact Value proposition Market Sizing Revenue Model Positioning One liner Elevator Pitch User/Customer Traction MVP 1 Track usage statistics to support value proposition Stickiness Churn Initial access/ repeated use Iterate until MVP meets target metrics Value Traction Revenue Track Cost to acquire users Retention Lifetime value Key Performance Indicators (KPI) User/Custome r Satisfaction 5 yr P&L 5 yr milestones Entity Formation Pitch deck Incorporation File Patents/Copyrights Create Minimal Viable Product/Solution Develop a minimal but standalone solution to top problems Set target metrics to clearly demonstrate value proposition Instrument solution to collect data for metrics Secret Sauce: Key Differentiation Which Path Prep for Full on Execution Customer Hypothesis Target User/Customer Top 3 urgent problems Entity and Funding Path For or Non-Profit Bootstrapped Small Medium Business Grants Angel funded Venture funded Find Growth Funding Pitch deck Incorporation File Patents/Copyrights Name, url, website Social Media Harden Product Quality Scalability Cost of goods Sales and Marketing Company and Product Name, url, website Social Media Go to Market Cost of Sales Sales cycle

What’s right for Your Impact For Profit: –LLC –C or S Corp (usually in Delaware) Non-Profit: –501(c) (3) 501(c)(3)-Organizations 501(c)(3)-Organizations Newer B-Corp: - Social Impact matters/?gclid=CL6khc7WwskCFYGVgQoduEMJgQ matters/?gclid=CL6khc7WwskCFYGVgQoduEMJgQ

UI/UX, Design, Customer Discovery Law Venture Funding Financial Modeling, & Sales Software Prototyping (Full stack web, mobile) Physical Prototyping (maker, electronics) Marketing, PR, Social Media, Pitching, Storytelling Innovation Projects Teams Services and Process Prototyping (GLAM, cultural institutions) Law Progress Today, Customer Discovery (27% of UMSI Students do a PLSDIP)

Innovate Blue Design Studio: Individual Clinics UI/UX, Design, Customer Discovery Law Venture Funding Financial Modeling, & Sales Software Prototyping (Full stack web, mobile) Physical Prototyping (maker, electronics) Marketing, PR, Social Media, Pitching, Storytelling Innovation Projects Teams Services and Process Prototyping (GLAM, cultural institutions) Law All Clinics provide an “open door” through free office hours, example deliverables, to help innovators cycle through the pathway at least once!

To What End? World’s most entrepreneurial “curriculum” Nation’s most entrepreneurial university State’s economic development partner

UMSI Entrepreneurial Program BHAG ( Big Hairy Audacious Goal) Inspire and support every student to participate in at least one Passion-Led, Self-Directed Innovation Project during their tenure at UMSI = PLSDIP

What We’ve Learned Mastery: Apply the core principles of innovation methods from Lean Startup, Customer Development, Crossing the Chasm and Agile Development in one of the following sectors: a for-profit business, non-profit, or cultural institution. Competency: Identify and develop innovation skills in Design Thinking, defining and testing a target market along with SCRUM Development from which to form and grow teams in order to achieve innovation success. Create a prototype service, product or process using the technologies or tools of their choice. Adaptively apply specific methods of innovation ideation, business/product/service development, and identifying steps for preparation for for-profit or non-profit incorporation. Take a leadership role in an agile software development process as the Scrum Master or Product Owner. Create a mobile app prototype (phone or watch) using iOS development tools and environment. Literacy: User test their prototype app. Conduct and present findings of competitive analysis and market sizing Develop a basic sustainability model Awareness: Identify pathways supported by the University of Michigan to continue developing their innovation.

IDEATION: Customer Development Customer Search Customer Validation ProblemsSolutions

”Build Something for SOMEBODY Instead of Everything FOR NOBODY" - Geoffrey Moore in “Crossing the Chasm”

Course Evaluations….. THANK YOU Cookies!!!

LAST HOMEWORK Do your presentation & demo for at least one of your target users, time yourself to 5 mins Have them score you Ask them if they will be ready to use your prototype

Standup Standup Trello board: –Status –Next week –Obstacles 5 min run through