For an early-stage startup CEO, the one thing is the single central proof point of the round you are raising.

about 1 year ago | From medium | Author: Gil Dibner

I was recently working with one of my portfolio companies to introduce some potential follow-on investors and help them navigate that process. The company, which I’m not going to name in this post, is building a pretty critical piece of IT infrastructure for a very large but difficult to penetrate segment of the economy. The investment thesis has two central components. The first is that this piece of software will unlock a massive logjam of pent up demand for IoT deployment. The second is that this particular startup will be able to sell its SaaS infrastructure platform (1) rapidly (2) to multiple customers (3) without writing any custom code and (4) that, over time, customers will pay in the low- to mid-six figures for the technology.
As an early-stage investor, I’ve spent a ton of time with the CEO understanding the market, the technology/product, existing customer relationships, and the opportunity. There’s a lot we don’t know, but a lot we do. And then there is that one thing. Let me explain.
We pretty much know that the market opportunity (the first part of the thesis) is real: our customers are very consistent about that and there is plenty of other market signal here. The second part of the thesis is a bit more tricky. We know that the company can sell pretty rapidly. They have about eight paying customers and/or signed paid pilots in three different countries, and some of those customers are important reference customers within this industry. They did that without writing any custom code, without raising any real venture money, and without any sales people (the CEO’s deep background in enterprise software product management and sales helped a lot here). What we don’t know yet — what we can’t prove — is that the price point will be high enough to build a large business. That’s the one thing, however, that is make-or-break for this company. And it’s both the one thing we can’t yet prove and the one thing that the best VCs struggle to believe. In the words of one VC, “show me one customer paying you $250K, and I’m in.” More on this in a moment, but let’s talk about the “one thing” and what it means.

Defining the one thing

For an early-stage startup CEO, the one thing is the single central proof point of the round you are raising. It is something about which you do not have sufficient evidence to prove conclusively, but it is something that when proven will sufficiently derisk the company to make the next financing round much easier. In essence, the one thing is the thesis of the round you are in. It’s the thing you are betting the company on.

       

What your peers are reading!

When a company understands its users as well as purple does, it feels like they have earned our trust
When a company understands its users as well as purple does, it feels like they have earned our trust
Added about 1 year ago | As appeared first on Prototypr | Author: Justin Ramedia

Not long ago, I was trying to watch a video on YouTube. I got the expected “5-second till skipping” countdown and had my mouse hovering over the skip link, but the video was interesting. I laughed, so I figured I’d give it another few seconds to see what the product was all about. I ended up watc...  ...Read more


Companies looking to build consumer habits should know that monetization is a result of engagement .
Companies looking to build consumer habits should know that monetization is a result of engagement .
Added about 1 year ago | As appeared first on Medium | Author: Nir Eyal

According to the New York Times, when Page looks at a potential company to acquire, he wants to know if the product is, like a toothbrush, “something you will use once or twice a day.” Page clearly understands habits. As I wrote in my book, “Hooked: How to Build Habit-Forming Products,” frequent...  ...Read more


When a startup company is visualizing their product, they tend to forget the moments a user has to wait.
When a startup company is visualizing their product, they tend to forget the moments a user has to wait.
Added about 1 year ago | As appeared first on Hackernoon | Author: Wayne Chang

Contrary to MVPs, where the goal is to get something barely usable out the door and into the market for initial feedback, an MLP takes the opposite approach, treating, among other things, the first-time experience of a new user very seriously. This is the first time they’ll see your product, the...  ...Read more


Working for free is OK in the early days, but later, it gives you an excuse to just “do your best”.
Working for free is OK in the early days, but later, it gives you an excuse to just “do your best”.
Added about 1 year ago | As appeared first on Medium | Author: Jason M. Lemkin

What are the Top 10 things I’d tell myself to do better, if I could go back in time? My top list: Slow down big decisions — when you aren’t sure. You have to move fast and break things, but if the pit in your stomach says “maybe don’t do that” — slow that decision down. My biggest mistakes ha...  ...Read more


Launching is hard work, but if hyperlocal marketplaces works in one market, then it will work in hundreds more.
Launching is hard work, but if hyperlocal marketplaces works in one market, then it will work in hundreds more.
Added about 1 year ago | As appeared first on andrewchen | Author: Andrew Chen

How to build a billion dollar digital marketplace – examples from Uber, eBay, Craigslist, and more Marketplaces are easily underestimated When marketplaces get big, they can get really big. Some of the biggest tech successes ever – eBay, Airbnb, Alibaba, Uber – are marketplaces worth ...  ...Read more


If you release your product too early, users may write it off as not good enough and getting them back may be difficult.
If you release your product too early, users may write it off as not good enough and getting them back may be difficult.
Added about 1 year ago | As appeared first on cbinsights | Author: cbinsights

From lack of product-market fit to disharmony on the team, we break down the top 20 reasons for startup failure by analyzing 101 startup failure post-mortems. WHERE IS THIS DATA COMING FROM? Start your free trial today Email Email SIGN UP After we compiled our list of startup failure post-m...  ...Read more


Top Mobile App Development Companies

Moobila Company Profile, Apps, Reviews   
Moobila

Moobila specializes in creating custom iPhone, and cloud-Based applications designed for your personal or business needs. .more

Employees: 27
Founded: 2010
Services:   App   
 Locations

Islamabad, Pakistan

RapidValue Company Profile, Apps, Reviews   
Rapidvalue

A leading provider of end-to-end enterprise mobility solutions to emerging product start-ups, Fortune 500, Fortune 1000 and Multi National Companies. .more

Employees: 200
Founded: 2009
Services:   App    Integration    Quality Assurance    Design   
inqbarna Company Profile, Apps, Reviews   
Inqbarna

We dream apps, we imagine apps, we design apps, we create apps. We live apps, we love apps! Have an app idea? Bring it to us!.more

Employees: 0
Founded: 2013
Services:   App   
 Locations

Barcelona, Spain

Stone Labs Company Profile, Apps, Reviews   
Stone Labs

At Stone Labs we apply our high-quality hi-tech knowledge to resolving functional problems of European, Australian and American (Atlantic coast) enterprises, by means of web/mobile/software solutio...more

Employees: 30
Founded: 2007
Are you sure, you can find a capable, trustworthy & affordable mobile app developer, all by yourself?

Looking to Build a Mobile App?

Here are some of the best apps built by developers from our network.
GreenVolts by RapidValue - App Development Company in Pleasanton, California, United States
  GreenVolts
by RapidValue
iOS   
 4130
        
THE ULTIMATE SALES TOOL - Audi by Mutual Mobile - App Development Company in Austin, Texas, United States
  THE ULTIMATE SA...
by Mutual Mobile
iOS   
 4250
        
TunerTool by inqbarna - App Development Company in Barcelona, Catalonia, Spain
  TunerTool
by inqbarna
iOS   
 4018
        
Brickstr by DevelopmentNow - App Development Company in Portland, Oregon, United States
  Brickstr
by DevelopmentNow
Android    iOS   
 4439
        

Post Your Project

Vishruth-ContractIQ

Hi!
I'm Vishruth. My colleagues & I work everyday to make ideas see the light of the day.

Your ideas deserve the best developers. We’ll find your best match within days. It’s a promise. Talk to you soon!

     
About •  Careers •  How it works for Developers •  FAQ •  Contact •  Blog •  RSS

© 2018 ContractIQ   Terms of Service   Privacy Policy