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Startups: Prevent failure !
by financial modeling!Bryan’s talk as a Founder’s Institute Mentor
Hi. I am… Bryan Starbuck Former CEO & Founder of TalentSpring (Acquired in 2010) Currently: CTO at Crystal Commerce [email protected]
Here is the simple rectangle test
Width
Width =
Hei
ght
Height =
Depth =
# of Customers
Price OPTIONAL: # of Units per
Customer
Example: Selling to “Project Managers in the USA”
Our price is $19 per year
204,760 project managers
Example: Selling to “Project Managers in the USA”
204,760 $19 /per year
$3.8 million / year
Maximum revenue (and selling to EVERY product manager)
Model revenue early in order to completely change your pricing model to form an
ideal business model
Image: @5imon
Investors start off pessimistic
Inte
rest
Start Make this happen
Low
High
Image: @Theodore Scott
This is what investors expect
A company targeting a
$40m to $80m year business model
Image: @Theodore Scott
95 of 100 companies go after too small of a market
Image: @Theodore Scott
This is what they want
Able to reach > $100m rev for Angels. VCs want > $400m or > $800m
Focus on WOWing these 4:!There is a REAL & significant problem for the customer!1!
2!
3!
4!
This company has a real solution. !No other solution exists in the market!
People will pay !(this company’s prices)!
This is a HUGE market!
Now switching to excel
Now I’ll show deep financial modeling…
THE END!!
Q & A!
