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AngelPad Session BB 10.6.11

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This document discusses how to build a traction narrative, optimize an AngelList profile, and network on AngelList. It emphasizes showing momentum and quantified evidence of market demand. The key is telling a story through traction that implies your progress in derisking the business model and moving from product to market fit. Examples are provided of traction stories that highlight acceleration and increasing engagement. Tips are given for profiling like focusing on highlights and evidence over potential, using growth metrics, and providing demos. The document ends noting fundraising is difficult.

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How to build a traction narrative, pimp your AngelList profile, hustle on AngelList, and understand that fundraising is #&@* hard.@brendanbakerAngelPad – October 6, 2011Brendan Baker
Shiny Ego Stuff* Not a founder (yet)Brendan Baker
Our options1Building a Traction Story2Pimping Your AngelList Profile3Hustling with AngelList4Fundraising is $%*@ hardBrendan Baker
Building a Traction StoryBrendan Baker
1How do investors think?Brendan Baker
Momentum.Green is good.Brendan Baker
Excitement > HesitationAmplify and focus on the excitement points. Surface and deal with the hesitation points.Brendan Baker
Derisking.Can they build the product?Will people use it?RiskWill people pay for it?Will people come in mass?ProgressDerisking often happens in steps.These steps may vary for different startups.Brendan Baker
Investors respond to a story. Storyboard. Make the pieces fit together. A story here means the takeaway message you want them to have, not something you’ll say directly.Brendan Baker
2What is traction?Brendan Baker
Traction is yourstory of momentum, told through quantified evidence of market demand for your product.Brendan Baker
“your story”Not told directly, but implied in examples of evidence.Your traction is unique – use examples that are unique.Don’t hide weaknesses, but frame them.Brendan Baker
“quantified evidence”YesMaybeProfitsRevenuesActive usersEngagementCustomers/clientsRegistered UsersDownloadsPartnershipsTrafficCohort progressEngagement progressProduct velocityNoPressTestimonials* This isn’t a set list. Use evidence that makes sense for you. Brendan Baker
“Market demand”Dynamic > static.Use evidence that describes momentum, and hints at market potential.Graphs or growth numbers can work.Brendan Baker
3So the traction story should show the path from product to market.Brendan Baker
Some examplesBrendan Baker
Remember:The story is the implied message you want to send. It’s not something you’ll say directly. Think of it this way: say you pitched an Associate at a VC firm. She liked you, and had a minute to describe your status and progress to a Partner. What would you want her to say? That’s your target story. Tell it with traction.Brendan Baker
story“They’re super early, but theybuild and learn fast. They’re worth betting on.”tractionBrendan Baker
story“They’re creating a marketplace. That’s hard, but theyknow it. Theyknew theyhad to build the supply side first, and theynailed it. Now they’re tackling the demand side. Early indications are good, and I think they know how to ramp it up.”tractionLaunched in March 2011:25,000 vendors, with avg 25 items (growing 20-30%/month)
11K uniques (growing 40%/month), with 3% conversion
avg purchase of $45 (growing 5%/month)
$120,000 revenue run rate (increasing 30%/month)
Just signed partnership with Yahoo! And ramping up ads.Brendan Baker
story“They’re accelerating theirschool by school rollout. The first schools are showing faster adoption than Facebook at their start, and are already nearing local market saturation. They’ve started in the next set of schools, and adoption and engagement is even higher. They’re releasing faster than anyone I’ve ever seen, and it’s working.”tractionLaunched 2 months ago in first school:Downloaded by 80% of addressable population
Weekly actives: 55%
Feature requests: course sets, note sharing, daily deals  V2With V2, now ramping to 10 more schools in 3 months:3 launched to date
Each school population is downloading the app at a 15% faster rate
Engagement (photos shared, messages, etc) has increased 40%+ over V1Currently building V3 with virality features, and planning to build street teams to reach the next 25 schools.Brendan Baker
Pimping your AngelList Profile.Brendan Baker
1Your job is to capture their attention. Don’t tell your life story. Focus on memorable highlights.Brendan Baker
2You’re in a market for early stage funding.Be unique. Don’t take is personally. Nobody cares about your problems.Brendan Baker
3The best info, as concisely as possible.Be focused. Second draft = first draft – 25%. Third draft = second draft – 25%.Brendan Baker
480/20: 80% what you’ve done, 20% where you’re going.Investors will extrapolate your past success to predict your future progress. This is different in other pitching contexts.Brendan Baker
5Evidence trumps potential.Every time you call yourself a ‘visionary,’ a puppy dies. You’re not a gamechanger, seasoned professional, innovative, next generation, or any other overused catchphrase.Brendan Baker
6Conviction convinces.Use present tense and strong wording. Avoid weak shit like ‘we’re planning to…’Brendan Baker

More Related Content

AngelPad Session BB 10.6.11

  • 1. How to build a traction narrative, pimp your AngelList profile, hustle on AngelList, and understand that fundraising is #&@* hard.@brendanbakerAngelPad – October 6, 2011Brendan Baker
  • 2. Shiny Ego Stuff* Not a founder (yet)Brendan Baker
  • 3. Our options1Building a Traction Story2Pimping Your AngelList Profile3Hustling with AngelList4Fundraising is $%*@ hardBrendan Baker
  • 4. Building a Traction StoryBrendan Baker
  • 5. 1How do investors think?Brendan Baker
  • 7. Excitement > HesitationAmplify and focus on the excitement points. Surface and deal with the hesitation points.Brendan Baker
  • 8. Derisking.Can they build the product?Will people use it?RiskWill people pay for it?Will people come in mass?ProgressDerisking often happens in steps.These steps may vary for different startups.Brendan Baker
  • 9. Investors respond to a story. Storyboard. Make the pieces fit together. A story here means the takeaway message you want them to have, not something you’ll say directly.Brendan Baker
  • 11. Traction is yourstory of momentum, told through quantified evidence of market demand for your product.Brendan Baker
  • 12. “your story”Not told directly, but implied in examples of evidence.Your traction is unique – use examples that are unique.Don’t hide weaknesses, but frame them.Brendan Baker
  • 13. “quantified evidence”YesMaybeProfitsRevenuesActive usersEngagementCustomers/clientsRegistered UsersDownloadsPartnershipsTrafficCohort progressEngagement progressProduct velocityNoPressTestimonials* This isn’t a set list. Use evidence that makes sense for you. Brendan Baker
  • 14. “Market demand”Dynamic > static.Use evidence that describes momentum, and hints at market potential.Graphs or growth numbers can work.Brendan Baker
  • 15. 3So the traction story should show the path from product to market.Brendan Baker
  • 17. Remember:The story is the implied message you want to send. It’s not something you’ll say directly. Think of it this way: say you pitched an Associate at a VC firm. She liked you, and had a minute to describe your status and progress to a Partner. What would you want her to say? That’s your target story. Tell it with traction.Brendan Baker
  • 18. story“They’re super early, but theybuild and learn fast. They’re worth betting on.”tractionBrendan Baker
  • 19. story“They’re creating a marketplace. That’s hard, but theyknow it. Theyknew theyhad to build the supply side first, and theynailed it. Now they’re tackling the demand side. Early indications are good, and I think they know how to ramp it up.”tractionLaunched in March 2011:25,000 vendors, with avg 25 items (growing 20-30%/month)
  • 20. 11K uniques (growing 40%/month), with 3% conversion
  • 21. avg purchase of $45 (growing 5%/month)
  • 22. $120,000 revenue run rate (increasing 30%/month)
  • 23. Just signed partnership with Yahoo! And ramping up ads.Brendan Baker
  • 24. story“They’re accelerating theirschool by school rollout. The first schools are showing faster adoption than Facebook at their start, and are already nearing local market saturation. They’ve started in the next set of schools, and adoption and engagement is even higher. They’re releasing faster than anyone I’ve ever seen, and it’s working.”tractionLaunched 2 months ago in first school:Downloaded by 80% of addressable population
  • 26. Feature requests: course sets, note sharing, daily deals  V2With V2, now ramping to 10 more schools in 3 months:3 launched to date
  • 27. Each school population is downloading the app at a 15% faster rate
  • 28. Engagement (photos shared, messages, etc) has increased 40%+ over V1Currently building V3 with virality features, and planning to build street teams to reach the next 25 schools.Brendan Baker
  • 29. Pimping your AngelList Profile.Brendan Baker
  • 30. 1Your job is to capture their attention. Don’t tell your life story. Focus on memorable highlights.Brendan Baker
  • 31. 2You’re in a market for early stage funding.Be unique. Don’t take is personally. Nobody cares about your problems.Brendan Baker
  • 32. 3The best info, as concisely as possible.Be focused. Second draft = first draft – 25%. Third draft = second draft – 25%.Brendan Baker
  • 33. 480/20: 80% what you’ve done, 20% where you’re going.Investors will extrapolate your past success to predict your future progress. This is different in other pitching contexts.Brendan Baker
  • 34. 5Evidence trumps potential.Every time you call yourself a ‘visionary,’ a puppy dies. You’re not a gamechanger, seasoned professional, innovative, next generation, or any other overused catchphrase.Brendan Baker
  • 35. 6Conviction convinces.Use present tense and strong wording. Avoid weak shit like ‘we’re planning to…’Brendan Baker
  • 36. 7Associate yourself with success.Capture the gold dust from your investors, past employers or startups, customers, etc.
  • 37. 8ASM: Always Show Momentum.Venture investors invest in momentum. Set expectations: ‘we’re still in private beta but…’ Use absolute and growth numbers.Brendan Baker
  • 38. 9Geeks rule.AngelList is a technical community. Broadcast your geeks.Brendan Baker
  • 39. 10Give them something to touch right away.Provide a demo with login details or failing that, screenshots. Don’t rely on a 2 minute demo video. Busy investors won’t watch it.Brendan Baker
  • 40. How to Hustle on AngelListQuick discussion around the ‘How to Hustle with AngelList in 12 Steps’ Quora post.Brendan Baker
  • 41. Fundraising is $#@* Hard.Quick discussion around Anatomy of Seed project.Brendan Baker
  • 42. ResourcesHow to Communicate Traction to InvestorsHow to Hustle with AngelList in 10 StepsAnatomy of Seed: An Inside Look at a $1M Seed RoundBrendan Baker
  • 43. Thank you. Thank you for building kick-ass companies.@brendanbakerBrendan Baker