Lesson 5 @ Design Akademie

1. SH*T ENTREPENEURS SAY
http://www.youtube.com/watch?fea
ture=player_embedded&v=alZqXA4R
2dI

2. • VIRAL:
• An image, video, advertisement, etc. that is circulated rapidly on the
Internet.
• MVP:
• Minimum Viable Product,
• A Minimum Viable Product has just those features that allow the product
to be deployed, and no more.
• LEAN:
• creation of rapid prototypes designed to test market assumptions, and
uses customer feedback to evolve them much faster than via more
traditional product development practices
• CONTINUOUS DEPLOYMENT
• All code/product is immediately deployed into production on a live update
basis, everyday. (not like apple keynote who wait to release everything on
one day.

3. • PIVOT
• Zoom-in pivot. In this case, what previously was considered a single
feature in a product becomes the whole product. This highlights the value
of “focus” and “minimum viable product” (MVP), delivered quickly and
efficiently.
• Zoom-out pivot. In the reverse situation, sometimes a single feature is
insufficient to support a customer set. In this type of pivot, what was
considered the whole product becomes a single feature of a much larger
product.
• Customer segment pivot. Your product may attract real customers, but
not the ones in the original vision. In other words, it solves a real
problem, but needs to be positioned for a more appreciative segment, and
optimized for that segment.
• Customer need pivot. Early customer feedback indicates that the problem
solved is not very important, or money isn’t available to buy. This requires
repositioning, or a completely new product, to find a problem worth
solving.
• Platform pivot.This refers to a change from an application to a
platform, or vice versa. Many founders envision their solution as a
platform for future products, but don’t have a single killer application just
yet. Most customers buy solutions, not platforms.

4. • Business architecture pivot. Geoffrey Moore, many years ago, observed
that there are two major business architectures: high margin, low volume
(complex systems model), or low margin, high volume (volume operations
model). You can’t do both at the same time.
• Value capture pivot. This refers to the monetization or revenue model.
Changes to the way a startup captures value can have far-reaching
consequences for business, product, and marketing strategies. The “free”
model doesn’t capture much value.
• Engine of growth pivot. Most startups these days use one of three
primary growth engines: the viral, sticky, and paid growth models. Picking
the right model can dramatically affect the speed and profitability of
growth.
• Channel pivot.In sales terminology, the mechanism by which a company
delivers it product to customers is called the sales channel or distribution
channel. Channel pivots usually require unique pricing, feature, and
competitive positioning adjustments.
• Technology pivot. Sometimes a startup discovers a way to achieve the
same solution by using a completely different technology. This is most
relevant if the new technology can provide superior price and/or
performance to improve competitive posture.

5. • A/B TEST:
• Sending one solution to half your customers and another solution
half measuring which solution is performs better.
• CONVERSIONS:
• Converting traffic into users and customers.
• SPLASH PAGE:
• Coming soon pages that are displayed before website is launched.
• http://j.mp/y2quJA
• STEALTH STARTUP
• Avoiding public attention to work on idea.
• BOOTSTRAPPING
• In many cases, is 3F's Friends, Family and Fools. (klash)

6. • SEED FUNDING
• www.seedcamp.com
• FFF- Friends, family and fools or angel investors invest the funds necessary
to start the business so that it has enough funds to sustain itself for a
period of development until it reaches either a state where it is able to
continue funding itself, or has created something in value so that it is
worthy of future rounds of funding.
• ANGEL INVESTORS
• Affluent individual who provides capital for a business startup, usually in
exchange for convertible debt or ownership. A small but increasing
number of angel investors organize themselves into angel groups or angel
networks to share research and pool their investment capital.
• PEER-to-PEER FUNDING (CROWDFUNDING)
• www.kickstarter.com
• Raising money from the crowd/friends

7. • VC (VENTURE CAPITAL):
• Series A:
• First Significant round of Funding:
• A typical Series A round is in the range of $2 million to $10
million, purchases 20% to 40% of the company, and is intended to
give the the company a runway for 6 months to 2 years.
• Series B/C:
• Next round of significant Funding.
• RUNWAY
• How long the money you have will last you.
• CRUNCHBASE
• www.crunchbase.com
• See companies and who's funding them.

8. • SOCIAL COMMERCE:
• Social commerce is a subset of e-commerce that involves using social media, (social
interaction and user contributions), to assist in the online buying and selling of products and
services.
• __________KILLER:
• When a company is launched to be a 'google' killer, they think they will replace google.
• MASHABLE:
• Social Media News Website
• http://mashable.com/
• SOUTH BY (SXSW)
• http://sxsw.com/interactive/startupvillage
• South by South West Startup Village brings together the
startups, entrepreneurs, investors, and cutting-edge digital tastemakers within the 2012
SXSW Interactive Festival. Located primarily on the fourth floor of the Downtown Austin
• SUMMIT SERIES
• http://www.summitseries.com/
• Summit Series engages the world's most dynamic dreamers and doers through events and
initiatives designed to make the world a better place.

9. • INCUBATOR
• Free/Cheap Space to startup a company
• ACCELERATOR
• Access to excellent mentors and introductions to get a business
going. Using a fixed amount of time including funding.
• Combined incubator/accelertor's
• Y Combinator: www.ycombinator.com
• Techstars www.techstars.com
• BUSINESS MODELS
• FREEMIUM (Free + Premium) freemium is a business product of
service (typically a digital offering such as software, media, games
or web services) is provided free of charge, but a premium is
charged for advanced features, functionality, or related products
and services.

10. • DECK:
• (PitchDeck)
• Disruptive Innovation (Clay Christensen)
• Creates new markets through innovations that improve a product
or service in ways that the market does not expect, typically first by
designing for a different set of consumers in the new market and
later by lowering prices in the existing market.
• SUSTAINING INNOVATION
• Does not create new markets or value networks but rather only
evolves existing ones with better value.
• PRE-ALPHA:
• Activities prior to testing.
• ALPHA:
• Prototype testing.

11. • BETA:
• Prototype tests are complete, limited release and further
testing, preparing to launch.
• CONSTANT BETA
• /Consistent Innovation: A company that never stops innovating and
remains in the culture of beta at all times.
• MONETIZE:
• Many business models (or lack of) go after 'eyes on' meaning it doesn't
matter what they are doing, the more hits they get, there are doing well or
they have users spending an hour on the site and coming back daily.
Monetization is how the company makes money off this model.
• GAMIFICATION:
• Introducing concepts from gaming to non-gaming environments such as
real life and business endeavours. e.g. Using GPS to award points for
crossing the road on a green light, bonus points for helping an old women
cross and a level up for no jaywalking for an entire month.

12. • IPO:
• An initial public offering (IPO) or stock market launch, is the first sale of stock by a
company to the public.
• IP:
• Intellectual property (IP) is a term referring to a number of distinct types of
creations of the mind for which a set of exclusive rights are recognized under the
corresponding fields of law. (Copyrights, Trademarks, Trade Secrets, Patents.)
• TERMS OF SERVICE:
• (Terms of use, disclaimer): The rules a user must abide by to use a service.
• PRIVACY POLICY:
• Discloses the ways a party gathers, uses, discloses and manages a customer or
client's data.
• TAKEDOWN NOTICE:
• When a website is ordered to take content down (e.g. youtube) as it is infringing
on somebody else's intellectual property.

13. • EXIT STRATEGY: Sale/relinquish/takeover/IPO
• NETWORK EFFECTS:
• When network effect is present, the value of a product or service is
dependent on the number of others using it. i.e. facebook gets stronger
the more of your friends that use it.
• 25% of your friends = weak
• 50% of your friends = medium
• 75% of your friends = strong
• SEARCH ENGINE OPTIMISATION: (SEO)
• is the process of improving the visibility of a website or a webpage in
search engines via the "natural," or un-paid ("organic" or "algorithmic"),
search results.
• AD WORDS:
• Google AdWords is Google's main advertising product and main source of
revenue.
• Pay per Click - You pay for every click and bid for most popular words.
• Pay per Impression - Typical of TV/Radio.

14. QUEST FOR IMMORTALITY
• IMMORTALITY
http://www.youtube.com/watch?v=-
0pHRejzYWU
• DMITRY ITSKOV
http://www.youtube.com/watch?v=dyJjGxZs4l
8&feature=youtu.be

15. • WRITE A PITCH ASKING ME (THE INVESTOR)
TO PUT MONEY INTO A PROJECT IN WHICH
YOU CAN ATTEMPT TO PROMISE ME
IMMORTALITY.
• THINK ABOUT HOW YOU MIGHT OFFER ME
THIS. IT CAN BE REALISTIC/ CRAZY.
• PITCH TO ME IN BUSINESS TERMS, USE THE
VOCAB TAUGHT IN THIS LESSON
• TELL ME HOW MUCH YOU WANT TO
RAISE, AND WHY. YOUR BUSINESS PLAN AND
LONG TERM GOALS.