Anas notes Flashcards
Importance of prototype
- Multiple designs
- User validation
- Cost and time efficency
Types of prototype:
low fidelity- basic function, dont have to work
high fidelity- low cost, has basic working funtions
max financing needed
to get them out of the valley of death.
Runway
time company has to runn out of cash
Gross margin measures
profitability (rev-cogs)
BOTTOM UP
- use when?
- Cost
- revenue
- If data more precise
- add indivudual cost => operating cost
- single product revenue=> amount sold=> revenue
TOP DOWN
- use when?
- Cost
- revenue
- In first phase of new businesses
- Operating cost=> individual expenses
- market size=> market share
investor types:
- FFF
- Crowdfunding
- Business angels
- Venture capital
- Private equity
- Bootstrap
Business angels:
Individuals invest their own money in startups
offering funds, mentorship and valuable industry connections.
Venture capital:
invest substantial amounts of money in high-growth startups in exchange for equity, aiming for significant returns upon the company’s success or exit.
Private equity:
large-scale funding to established companies looking to expand, restructure, or go private, often with a focus on long-term profitability.
Bootstrap:
Building a business using personal savings and operating revenue, avoiding external funding to maintain control and minimize debt
Cash Flow statement
1.operating
+ sales
- Cogs, marketing, salary, admin
2.Investment -
3.financing +
= how much u need
CAPitalization table is a…
spreadsheet or document that outlines the ownership structure of a company, detailing the equity ownership stakes of its shareholders
Cap table
Pre-money valuation €
investment need €
Post- money valuation €
Founders ownership %
Investor A %
Investor B %
….
option pool for future employees 10%
Revenue is..
the total amount of money generated by a company from its business activities
Net income, also known as profit or earnings, is…
the amount of money a company has left after deducting all expenses, including taxes, interest, and operating costs, from its total revenue.
Burn rate refers to…
the rate at which a company is spending its cash reserves or investor funds to cover operating expenses and sustain its business activities.
Traditional feature of customer segment:
- Demographics
- geographic
- Social/Psychological
Futuristic customer segement features
- Dreams
- Fears
- Storys they tell themselves
Brach head market
- take one market out of the market segment
- choose one cause limited resources, money time and human capital
- easiest one to capture
- Military: land on beach that big but not too big and then expand from there
3 conditions for beachhead market
- customer buy similar products
- customer have cycle and expect same value
- word of mouth by customer
Ideal beachhead
- Well founded
- ready acess to customers
- Compelling value proposition
- whole product
- competition (non in the way)
- Leverage (hebelwirkung) to enter adjacent markets
- Personal alignment
Customer markets
- Early Evangelists
- Serviceable obtainable market
- Serviceable Available market
- Total addressable market
