In the series of “Elevator Pitch on the Video” we are proud to present QAim!

For more information please visit the website www.qaimgroup.com.

This “Elevator Pitch on the Video” was produced by Venture Bonsai and is made with a specific script for companies looking for funding. With this well-defined script and process the production cost was 80% lower than it would normally be. For each company, there is also another video produced. This second video is “Investor Pitch”, it’s purpose being to answer in more details questions regarding the business and the investment round. It’s about 5 minutes long and access to that video is granted by the presenting company.

Thank you also for our sponsors!


In the series of “Elevator Pitch on the Video” we are proud to present Fambit!

For more information please visit the website www.fambit.com.

This “Elevator Pitch on the Video” was produced by Venture Bonsai and is made with a specific script for companies looking for funding. With this well-defined script and process the production cost was 80% lower than it would normally be. For each company, there is also another video produced. This second video is “Investor Pitch”, it’s purpose being to answer in more details questions regarding the business and the investment round. It’s about 5 minutes long and access to that video is granted by the presenting company.

Thank you also for our sponsors!

Today I had an opportunity to participate a pitching event arranged by FundingPost.com, in Palo Alto, California. The event consisted of group of entrepreneurs pitching for the audience and then the panel of Venture Capitalists giving comments on the state of the industry and the presentations as well.

It was stated that Friends&Family investment rounds can typically be up to half a million dollars (unless you have really rich friends and family) and VC investments typically start at 2 million. So there is a great gap in between, and that has increased the deal flow for angel investors. At the same time “time to liquidity” ie. time from investment to exit has doubled. Today, investors may have to be prepared to stick with the company even more than 10 years.

As always, some companies are more “hot” than others. That influences the interest to invest. In the best position is a company whose product or service is creating traction, revenue and is growing. Those companies may enjoy, even today, receiving several competing term sheets. On the other hand, rest of the companies have much more difficult situation.

Comparing the pitches to those seen back at home, there were few differences and many similarities:

  • wider range of industry segments
  • generally older and more experienced entrepreneurs
  • looking for funding in the range of 300,000 to 8 million
  • quality of pitches varied but in general, again, more or less same range than in Europe
  • in some cases more “forward-looking” pitches, with probably less substance but true interest

There were number of investors in the panel, moderated by Adrian Shulman, Partner at Bingham McCutchen.

I’m sharing some of the most interesting comments, in my opinion, what they said.

Ho Nam (General Partner & Co-Founder of Altos Ventures) said that they are looking for interesting phenomenon.

Obviously the best time to raise money is when you don’t need it. Venture Capitalists are like sheep, they move in herds. It’s entrepreneurs who think out of the box and are the smart ones in this room.

John Hall (Managing Director of Horizon Ventures) said that typically an entrepreneur should get investor’s attention within one minute. The problem and the solution must be so simple that your mother could understand it. Only after that message has gone through, it makes sense to go to the details. He also advices entrepreneurs to do background research on the investors, like have they done similar investments before. That way you also know to contact the right partner at the investor company. A good resource to check VC background, by the way, is The Funded.

Steve Goldberg (Partner at Venrock) said that they are looking for evidence of big market, early customers, great execution plan and team of people who can do it.

We fund entrepreneurs and we fund CEO’s.

Eric Chen (Venture Partner at WI Harper Group) was comparing the US entrepreneurial scene to that in China. He said in China even those start-ups who have million dollar revenue may not get funding as the competition is tough.

So what’s the biggest difference, say between Silicon Valley and Finland?

I’d say it’s the atmosphere, at least. And as it is all about motivation, acceptance of entrepreneurs but also competitiveness. It’s more likely here for entrepreneurs to keep trying, even after failing.

And how does our upcoming Venture Bonsai relate to this? As it’s a tool for entrepreneurs, it makes running a (crowd)funding round (with many investors) easier. It’s primary not meant for getting VC’s onboard, as it’s more for the seed stage. The standardized documents such as Shareholders’ Agreement, however do take into account VC investment being possibly the next step.

In summary, it was quite interesting to see the event, and gave a lot of things to think about, again.

Launching with ‘good enough’ productization

Last week’s blog series ‘art of productization’ continues with more insights from Kati Riikonen, our guest writer in this week’s blog.

Yes, it’s true, ’good enough’ is not measured in the amount of features or the length of specification.  For productization, the key customer promise is a top priority it seldom requires all possible features to be showcased.

Often there is no need, nor it’s feasible, to do full productization journey before going out to market making mode.

The level of necessary productization is depending on many variables. Most importantly one should crystallize concrete goals for the post-launch actions. There are also big differences on targeted audience is B2B, B2C or C2C. In reality, the limiting factors for productization often tend to be time and money.

The following provides examples of productization check points for various types of launches.

Idea launch

  • Examples of next steps: Generate public discussion, idea exchange, testing the idea, scouting potential partners, gathering insights
  • Productization check list: None. Just go out and talk the way you do – all entrepreneurs should do idea launches every day!

Concept launch

  • Examples of next steps: Seeking for finance, crowd-sourcing for development or more insight, thought leadership, publicity, scouting for ecosystem partners
  • Productization check list: Initial customer promise, name and descriptor, differentiators, user experience and marketing assets.

Tip on naming: In B2C or C2C concept launch a legally protected name in early phase is a real asset. In B2B concept launch, it is more natural and often enough just to differentiate with customer promise and descriptors, rather than spend limited resources on the naming convention.

Tip on prioritization: In case of very limited resources, focus on the concept’s customer promise and end-user experience as top priorities regardless if it is B2B, B2C or C2C.

Commercial launch

  • Examples of next steps: Market and sell! Business development, marketing, scout, sign and train distribution channels, agents, personnel.
  • Productization check list: In case of B2C or C2C launch, the further the productization check list is completed, the more likely are scalable sales and operations to accelerate. Of course, there are always exceptions, but the fact is that agents and sales pros tend to sell what gives them the fastest and reasonable payback. Having all the productization assets at immediate disposal gives the team a head start.

Reminder: Productization process does not mean that it’s done in vacuum before going out to public. Direct end-user insight, dialogue and co-creation can – and often should – be part of the successful productization.

Feel free to post your comments & example cases!

There is also a summary mindmap available (in English) and you can find the book itself here.

Check list for software and digital service productization

Recently I had an inspiring discussion with Kati Riikonen, a doer, who has been working with several companies from mobility, web and software development domains. We were exploring the needs, pros and cons of the productization of software and digital services. With Kati’s permission, I am sharing some experiences on the topic.

Fully productized service should roughly cover the following:

Pitch check list

  • Clearly differentiate from companies and competitor’s other existing services
  • Name with trademarks and legal protection
  • Short and clear customer promise
  • The elevator speech, a short and crisp 1-2 sentences description of the product or services

User experience check list

  • User experience design drivers and design blueprint
  • Product definition: detailed description of the functionality. This element can be a demo, specification, description or any other format

Assets check list

  • Marketing assets that can be distributed physically or digitally
  • Detailed sales guide, that can be distributed physically or digitally
  • Organized documentation of the service and its operations

Sell check list

  • Price, which can be told immediately and clearly
  • Distribution channel and sales people need to be able to sell the product within feasible investment of time & effort
  • Company’s own personnel and agents need to be able to tell with is being sold with few sentences
  • A client, who is about to buy the service or product, needs to be able to tell with few sentence what he/she is about to buy

Naturally one does not need to take the steps in the right order – we entrepreneurs seldom do! The above should be treated more as a reference.

Shortcuts work very well – often for a period of time. However, significant shortcuts can cause unnecessary resource needs later on. Here is an example:

The project had user experience elements well designed, but did shortcuts in most of the other areas.  User experience assets showcased the concept so well that the company was able to start sales mode immediately. It did not matter that the service did not even have a name – and it still does not have legally protected name.  It might sound an easy way to reduce the pain of productization, but now the company is facing an increasing amount of challenges with press and industry discussion. They are now spending a lot of effort and ‘air time’ to correct the misleading names and messages instead of focusing on their own pitch.

The next question is what level of productization is ‘good enough’ for public launches?

While waiting for the Part 2, post your experiences, questions & comments – thanks!

Part 1 of this blog entry is here.

So you’ve got this busy life as well? Probably have quite a few gadgets and electronic devices around you. Sometimes you feel it takes too much time to learn to use the full potential of those devices. Sometimes they just make life more complicated than it should be, let alone updating those devices to the latest software. Of course if you have a Mac (as I do) and a Nokia phone, you know that there is no need to update the software (as it’s only possible with Windows). If you are having difficulties with these issues, think about your mother, and how she’s doing all that (she’s not).

You are in your car, driving as it is raining like never before. And you know your carpool passenger is waiting for you, in the rain… Even though the Wizard tells you that there are umbrellas for sale three hundred meters ahead, you know that by the time (according to the navigator, 3 minutes) you get to your passenger, she does not need it anymore.

As you’re approaching the carpool passenger, the phones confirm that you are meeting the right person. You can see how she looks like, and she can see (in her mobile phone) how you and your car look like. Her phone also show your “reliability status” – which is fine. You pick-up the passenger, your phone tells you how to navigate to the drop-off location, she confirms her Wizard a safe arrival and you continue to your own office.

While approaching the office, the security gates are opened automatically as it detects your safe arrival. While walking the stairs upstairs, the Wizard has a message from Jobita. You were asking for babysitters, remember? You have three offers, you pick one that your friends have used and you confirm a deal. One worry less, great!

During the day, in the meetings, the phone does not disturb you with messages you don’t want. Family messages have priority, however (thanks to Fambit service) – so you know when to answer your daughter’s call. And if you happen to forget about the next meeting marked in your calendar, the Wizard tells you when to leave to be on time, and even gives you the public transportation route plan if you wouldn’t have a car with you as you have this time.

It’s almost six o’clock. As you have agreed to meet your wife soon in a restaurant 10 blocks away, you call her to check with her everything is ok. You drive to the restaurant, the Wizard in your phone tells you the best parking options (based on real-time information from other users) and you easily find a parking place. You pay for that, naturally with the mobile phone again.

You have a nice dinner … and whenever you wonder what’s going on at home, you just check the life video feed from home. Cool. As it turns out to be a really memorable moment for both of you, you ask the waitress to take a picture with your phone. The Wizard knows what to do with the photos. It’s sent to your Life Album, as well as to your daughter’s phone. Soon the phones gives her feedback to the picture… obviously she would like to be with you. Oh no, maybe next time.

That’s it, an imaginary story what all a mobile phone could do to make your life a bit easier. As you can see, there’s no rocket science involved. All this is perfectly doable. Bits and bytes are available in some applications, maybe, but they are not really part of anybody normal life yet.

What do you think? Do you have better ideas how this should go? Let us know, feel free to comment!