Firmhouse Venture Labs Presentation at VentureCafe - 27-07-2017
Introduction
Robbert van Geldrop Partner at Firmhouse & Lean Startup Circle NL Twitter: @rvangeldrop robbert@firmhouse.com firmhouse.com
Vision Startups easily turn into expensive hobbies. We believe the world needs more healthy and stable businesses, fewer all-or-nothing moonshots. Building these businesses is hard work, therefore everyone gets a piece of the potential success.
Why do startups fail?
From CB Insights: https://www.forbes.com/sites/groupthink/2016/03/02/top-20-reasons-why-startups-fail-infographic/#589b35e83911
Seems like a bad idea Great idea SWEETSPOT
Can it be built?
Can it be built? Should it be built?
Ventures Startups
Example ventures that are not startups: Linux Mozilla Ethereum
A VENTURING PROGRAM FOR ENTREPRENEURS Healthy businesses Learn about problems to solve before starting up and committing to the wrong product. Form the right team Work with each other and get guidance on forming a complete team. Explore options Try out multiple things. Run them as small projects. Team up with fellow participants.
Idea/founder fit: Important precursor to the infamous product/market fit Deep knowledge of a market, technology or both Advanced skills to make things happen, for example: Being able to code, design or copywrite Natural sales person Bias towards action - you produce stuff Ideally you have domain expertise and advanced skills
Who are we looking for: Entrepreneurial people - who are very good at multiple things Learner s mindset - understand that an idea needs to evolve by learning from customers and their problems Makers - they create things as a measure of progress
Program Details
A PROGRAM FOR THE ENTREPRENEUR 3 months of runway 1200 euro cash in hand each month to cover cost of living Tailored education No fixed program, but calibrated to the needs of the participants Small mentor pool Handpicked mentors follow you intensely
Program focus: Producing useful software which solves hard business problems Utilize technologies like Machine Learning, Blockchain or Mixed Reality Learn to execute in small projects and experiments before committing to an idea, product or a startup A mix of entrepreneurs and intrapreneurs - we will allow for max 3 corporate teams to participate in the program
Program setup & flow Operates in cycles of two weeks, year round. 4-5 on boarding moments for new teams. 1-week onboarding Focus teams, set goals and prepare for first check-in 2 weeks Kick-off next batch Closing Event Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6 Cycle 7 Cycle 8 First bi-weekly check-in Share first progress Form teams Investor lunch
Workshop Duration Description Business modeling Half day Learn how to use Business Model Canvas Business 101 Full day How to setup and structure a business Agile & Lean Startup Full day Learn about Agile and Lean Startup to work iteratively Customer Development Half day How to talk to customers to learn the most from them Experiment Design Full day How to test your ideas and riskiest assumptions
What makes our program different: No fixed program Onboard & calibrate in the first week of the program Dedicated and experienced mentors Bi-weekly check-ins to share progress with peers
The bi-weekly check-in 1. Participants report to each other on their progress in two week increments 2. Check-ins are meant to create accountability and focus, mentors might be involved to structure conversations and stay in the loop 3. Consider projects which you want to collaborate on with other participants and/or outsiders 4. Model has been proven to generate good focus and alignment on progress of the internal ventures at Firmhouse
Investors lunches Instead of relying on demo-day for pitching to a big crowd of investors we organise lunches with pre-selected investors. We will hold a Closing Event. This will be a conference at the VentureCafe in which participants can share their learnings.
Investment
WE INVEST IN REVENUE FOCUSED BUSINESSES, SOFTWARE AS KEY COMPONENT Early revenue Teams have paying customers or are days away from closing significant deals. Team committed Founding team is committed full-time and have all the skills to build their company. Only B2B We only invest in businesses that sell their software product to businesses.
Investors Robbert van Geldrop Entrepreneur & investor Sold his software company to Acronis and is now a shareholder in Firmhouse. Robbert will operate the program and guide the entrepreneurs. Diederik Dolk Dealmaker & investor Has a background in corporate venturing for a large energy company and has invested in 5 startups to date, including Storegear and SHIPX. Paul Bakker Advisor & Investor Paul spearheaded the development of the Crypto department at Fox-IT. After 7 years he focussed on building PolarSSL which was acquired by ARM in 2014.
Notable investments
Options at end of the program 1. Incorporate your business with help of Firmhouse in return for 5% of the company 2. Get additional investments from Firmhouse partners At least 50k euro from Firmhouse own investors Additional money from other investors if possible and needed 3. Continue without us, no strings attached
Investment offer to qualifying teams 1. 50.000+ investment for substantial minority share 2. Firmhouse Venture Lab will help you set up your company properly 3. Continued mentoring and support
Investment qualifications 1. Complete team 2. Traction with first customers 3. Large potential in a B2B market