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Introduction: idea is not enough and other most dangerous startup mistakes
This is the course for both fresh and experienced startupers among you. Read, practice & test your skills for the growth of that #NextUnicorn! When you feel ready take the final quiz to test your knowledge and be awarded with Startup Guide's certificate of completion signed by the Head of Startup Lithuania!
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Section 1: Planning your business idea
How to brainstorm, discover and plan you next BIG idea and bring it to life.
- 1.1. The Essence: problem solving and value proposition
- Exercise 1.1.1 – Identify Problems, Jobs, and Gains
- Exercise 1.1.2 – Prioritize and Bundle the Solution
- Exercise 1.1.3 – Define Value Proposition
- 1.2. Alternative solutions & competitive analysis
- Exercise 1.2.1 – Google the Solution
- Exercise 1.2.2 – Talk to People
- Exercise 1.2.3 – Compare Offerings
- Exercise 1.2.4 – Find Blue Ocean
- Assignment/deliverable #1 – Value Proposition
- 1.3. Segmentation and potential market size
- Exercise 1.3.1 – Define Market Type
- Exercise 1.3.2 – Divide Market into Segments
- Exercise 1.3.3 – Create Scheme and Persona
- Exercise 1.3.4 – Choose Target Segments
- 1.4. Monetization Options and Financial Estimations
- Exercise 1.4.1 – Choose Revenue Model
- Exercise 1.4.2 – Calculate Your Costs
- Exercise 1.4.3 – Know Your Cash Burn Rate
- Exercise 1.4.4 – Evaluate Need for Investment
- 1.5. Business model
- Exercise 1.5.1 – Answer Key Questions
- Exercise 1.5.2 – Draft the Canvas
- Exercise 1.5.3 – Review and Clarify
- Assignment/deliverable #2 – LEAN Canvas
- 1.6. Market and business environment analysis
- Exercise 1.6.1 – Plan the Research
- Exercise 1.6.2 – Estimate Market Size and Growth
- Exercise 1.6.3 – Evaluate Your Business Environment
- Exercise 1.6.4 – Update Value Proposition
- Assignment/deliverable #3 – Market Size and Business Environment
- Self assessment quiz #1 – Business Model
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Section 2: Testing your business idea
How to approach, validate and test your idea with potential users, customers, partners.
- 2.1. Get ready for hypotheses verification
- Exercise 2.1.1 – List all the Assumptions
- Exercise 2.1.2 – Complete Experiment Cards
- Assignment/deliverable #4 – Experiment Cards
- Exercise 2.1.3 – Find Potential Customers
- Exercise 2.1.4 – Choose the Type of Engagement
- 2.2. Creating minimal viable products: purposes and types
- Exercise 2.2.1 – Select the Type of MVP
- Exercise 2.2.2 – Create Your MVP and Run Experiments
- Exercise 2.2.3 – Make Decision: Pivot or Proceed
- 2.3. Validating problem-solution-market fit
- Exercise 2.3.1 – Validate the Problem
- Exercise 2.3.2 – Validate the Solution
- Exercise 2.3.3 – Validate the Price
- Exercise 2.3.4 – Validate the Target Segment
- Exercise 2.3.5 – Update Your Business Model
- 2.4. Testing communication and distribution channels
- Exercise 2.4.1 – Decide on Distribution Strategy
- Exercise 2.4.2 – Make a Draft of Your Sales Funnel
- Exercise 2.4.3 – List Possible Channels
- Exercise 2.4.4 – Test Channels in Small Batches
- Exercise 2.4.5 – Update Your Business Model
- Self assessment quiz #2 – Experiments and Validation
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Section 3: Funding your business
How to attract initial and further investments to help your startup grow and prosper.
- 3.1. Startups challenges and the fundraising process
- Exercise 3.1.1 – Get Ready for the Process
- Exercise 3.1.2 – Turn on Fundraising Mindset
- Exercise 3.1.3 – Identify Key Milestones
- Exercise 3.1.4 – Estimate Your Financial Needs
- 3.2. Choosing the best funding source
- Exercise 3.2.1 – Personal Savings, Loan, and Other Sources
- Exercise 3.2.2 – Business Income in Advance
- Exercise 3.2.3 – Crowd Funding Platform
- Exercise 3.2.4 – Angel Investors and Seed Firms
- Exercise 3.2.5 – Accelerators and Incubators
- Exercise 3.2.6 – Venture Capital Funds
- Assignment/deliverable #5 – Milestones
- 3.3. Creating a pitch deck and other fundraising material
- Exercise 3.3.1 – Elevator Pitch and One-pager
- Exercise 3.3.3 – Investor Presentation and Pitch
- Exercise 3.3.4 – Detailed Pitch Deck
- Exercise 3.3.5 – Online Profiles and Media
- Exercise 3.3.6 – Financials and cap table
- Exercise 3.1.5 – Maximize Your Startup Valuation
- Assignment/deliverable #6 – Pitch Deck
- 3.4. Entering into an investment agreement
- Exercise 3.4.1. Is the investor a good fit for your startup
- Exercise 3.4.2. Investor-founder partnership expectations
- Exercise 3.4.3. Forms of the investment
- Self assesment quiz #3 – Fundraising
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Section 4: Go to market
How to sell the product once it is tested and ready for the world markets.
- 4.1. Craft an irresistible offer
- Exercise 4.1.1 – Draft a High ROI Offer
- Exercise 4.1.2 – Create Unique Selling Proposition
- Exercise 4.1.3 – Make Your Offer Believable
- 4.2. Prepare your go to market strategy
- Exercise 4.2.1 – Product and market relationship
- Exercise 4.2.2 – Set Strategic Direction for Growth
- Exercise 4.2.3 – Define Marketing Strategy
- Exercise 4.2.4 – Have Alternative Marketing Strategy
- Exercise 4.2.5 – Update Your Business Model
- Assignment/deliverable #7 – Go-to-Market Strategy
- 4.3. Plan your marketing and sales actions
- Exercise 4.3.1 – Define the Main Goal
- Exercise 4.3.2 – Outline the Objectives
- Exercise 4.3.3 – Break Out Objectives Into Tasks
- Exercise 4.3.4 – Tie Tasks to Dates
- 4.4. Get ready to up-sell, cross-sell, and down-sell
- Exercise 4.4.1 – Create Up-Selling Offers
- Exercise 4.4.2 – Create Cross-Selling Offers
- Exercise 4.4.3 – Create Repeat Sales Business Model
- Exercise 4.4.4 – Consider Down-Sell Strategy
- Exercise 4.4.5 – Find Partners for Affiliate Sales
- 4.5. Foundations for startup branding
- Exercise 4.5.1 – Prepare for Brand Development
- Exercise 4.5.2 – Decide on Brand Characteristics
- Exercise 4.5.3 – Create Your Brand Identity
- Exercise 4.5.4 – Make Your Brand Alive
- Assignment/deliverable #8 – Marketing Plan
- Self assesment quiz #4 – Go-to-Market
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Additional resources
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Final Quiz
Exercise 3.2.6 – Venture Capital Funds
Venture capital funds (VCs)
A venture capital (VC) fund is a professional group that looks specifically to fund startups. VC typically provides funding for early-stage, high-potential, and growth companies seeking to generate a return through an eventual realization event such an IPO (Initial Public Offering) or selling the company in any other way. This type of investor holds a lot of money available to invest in startups, but there are a few major downsides as well. Venture capital typically looks for larger opportunities that are more likely to be stable. It means that your startup should have a strong team and a need for a few million dollars to scale effectively. To secure their investments, these funds might require having some level of control in your startup.
If you decide that VCs funding fits your strategy and you want to achieve success in fundraising, first of all, you should narrow the type of VC you are targeting. VCs are of different types and sizes. They can be categorized along a few main dimensions: size and purpose of the typical investment, location, and industry sector. Generally, there are a few main types of VCs based on the purpose of the investment:
Early-stage financing:
- Seed financing is usually a small amount that enables a company to get a start-up loan
- The purpose of start-up financing is to finish the development of products or services
- First stage financing is used when the company has spent starting capital and needs funds for taking business activities to full-scale
Expansion financing:
- Second-stage financing is used to begin a startup‘s expansion in a particular way
- Bridge financing may be provided as a short-term, interest-only finance option as well as a form of monetary assistance to companies willing to employ the IPO as a major business strategy.
Acquisition/buyout financing (even though it is not a VC fund by itself, it might be worth to have this financial solution in mind):
- Acquisition financing assists in acquiring a certain part of or an entire company
- Management or, so-called leveraged buyout, financing helps a particular management group to acquire a particular product or even another company
Once you have narrowed down the list of targeted VCs, look at their most recent investments. Research how many investments they have made, what types of companies they invested in, and if they specialize in a specific sector or geographic location. Try to estimate the size of their investments, if possible. If your business closely matches with their most recent investments, that might be a good signal to proceed with figuring out how to approach these particular VCs.
Venture Capital Dictionary
To learn more about different terms related to Venture Capital and Private Equity have a look at this extensive Venture Capital Dictionary prepared by Triniti Jurex law firm.