This document provides information about an upcoming workshop on building measure learning and key metrics for product development. It discusses developing hypotheses about customer problems and testing them through building minimum viable products and measuring key metrics. It emphasizes iterating quickly through building, measuring, and learning at each step to refine understanding of problems and solutions. The document also covers defining milestones and key metrics to track progress and validate business assumptions along the way.

1. Build Measure Learn & Key Metrics

2. Today
• About tomorrow and next week
• Statusmeeting
• Intro to Build Meaure Learn & Metrics
• YouPic and data driven product development
• Workshop

3. Tomorrow
• Feedback session @ 3 PM
– You will meet 2 persons giving you feedback and help
– No “pitch” but a conversation, however explaining
your business clear is crucial to get relevant feedback
• So, we are here if anyone wants to try the pitch
etc again – not mandatory

4. Next week
• Team development on
Wednesday 9-12 AM
• Professional
Facilitator of CEO- &
Management groups.
Authentic questions
both professional and
private are shared in a
reflective space.

5. Build Measure Learn
There is a due date
 Time to no cash
 Execution momentum
 Motivation span
The one who iterates the fastest wins
1. You don’t perish
2. You own more of your company
3. You outperform competitors

6. It’s a company culture!

7. Quickly move towards data
Quantitative
Qualitative
Time

8. The process
• Form a very clear hypothesis (idea)
– Mid size companies with knowledge base have a problem with finding artists
for parties?
– Artists (type X) want more small corp gigs?
• Construct the test (build)
– I will call 20 companies like above, ask them about the process today
– I will meet 20 artists type Z to understand how they get gigs today
• Define how to validate (measure)
– I will measure how many of the companies have the problem, how often and
how many that actually have searched for a solution
– I will measure how many artists are doing live gigs for companies today,
how many that wants to have more gigs, how many that want to invest time
in finding them?

9. 2nd iteration
• Only 1/20 in the target groups arrange the parties by themselves
(Learn). New:
– Small companies companies with knowledge base have a problem with
finding artists for parties?
• All artists wanted more gigs, but only 1/5 marketed themselves
today and they were often students and 1-3 ppl in the band
– Small student bands want more gigs to finance their studies?
• Construct the test
– We will call 20 small companies, 10-50 employees…
– We will talk to 20 student bands at the University….
• Measure….

10. 5th? iteration
• The real problem booking artists for gigs are quality
assurance (Learn)
– We can create trust by displaying artist with “live graph” from
facebook, youtube, etc
– Artist like X have “live graph” today
• We will build an MVP, enter 50 artists manually scrape
the web for “live graph” and attract companies… (build)
– Acquire users “ find the best livebands for your party” through
ads
• We want 20 companies register and do a first search

11. How do you increase speed?
• Be specific
• Document (don’t do
twice)
• Set goals/dates
• Take shortcuts
• Be a fool (if you ask
questions you might be a
fool for 5 mins, if you
don’t you will be a fool for
the rest of your life)
• Go online…..

12. Solution vs Optimization
1. Does your startup have hypothesis or leaps of faith in it?
We think people people have a need for a crowdfund solar platform
We think people need translation service for…
We think people need an easy way to book artists
We think service companies need a productivity service
We think production companies need a translation tool
2. Do you have discussions about how to re-design the
product so that people will use it more?
 Are users engaging with the product?
 How many users are dropping off?
 Which features are used / unused?
 How many referrals are we getting?
 Which A/B test was getting higher usage
Separate the big idea questions from
customer driven product development!

13. You will “never” stop iterating

14. Workshop
• Look at your Lean Canvas, what have you
validated or disqualified? – Check!
• What are your next steps, how do you construct
the test?

15. METRICS (WHY?)

17. The ultimate goal
If (CAC < LTV(*2+)) then (SCALE)
But we have a lot to do before that….

18. So why metrics
• Facts instead of opinions (B2C vs B2B)
• Faster build measure learn loop - Prioritize
• A data driven culture
• Good investors

19. Go offline

20. MILESTONES

21. Milestones?
• It’s about proof to validate the business (proof of concept)
• Better communication tool than plans (you need them too,
internally)
• ”All” investors require them (team (vision), traction, terms)
• Reflects the maturity - problem/solution fit -> product/market
fit
• When fulfilled risk is significantly reduced (market, product,
organisation or financial)

22. Type of milestones?
• Qualitative
– Signed partner
agreement
– Working MVP
– Proven technology
– LOI
– Problem validated
– …
• Quantitative
– 1000 sign-ups
– 1000 active users
– 10 paying customers
– 10% churn
– CAC < LTV

23. What is not a good milestone
or proof of concept?
• An article in Techcrunch (it can be a user acquisition strategy)
• Winning startup prizes
• Investor interest
• Tweets
• Market analysis made
• Segments defined
• Product plan defined
• Sold to a few customer (not necessarily, it’s about the business
model)
• …

24. How to define milestones?
Areas:
• Market (customer)
• Product
• Financial
• Human resources
To think about:
• B2C or B2B
• Segment
• Revenue model type
• Dependencies in the
business model
• Phase
• Tempo

25. Examples
• Proof that you can work together as a team, usually historical evidence
• Proof that you can build something, i.e. working prototype
• Proof that it’s useful to someone – first users and clients
• Proof that you can talk to investors – every financing round, even small ones
• Proof that you can talk to audiences – 100k users or 1M users or 10M users…
• Proof that the initial team is able to attract talent
• Proof that ecosystem agrees with your ideas – bringing respected industry advisors or
partnerships on board
• Proof that there is market – $1M annually
• Proof that you can manage your finances – cash-flow positive operation
• Proof that you can scale – $10M annually
• Proof that the market is big! – $25M annually and beyond

26. Workshop
• Define your key proofs needed (you think) that
when fulfilled CLEARLY have reduced the
market and product risk at this stage
– Is it 10 interested customers, a MVP that can…
– Is it 1000 sign-ups and…
– Is it 2 paying customers and an indication that there
are 10000 ”look a likes”?
• 20 mins

27. Part 2 – Key metrics

28. So what about key metrics
• Key metrics are something you continuously
follow
• Can be used to prove that a milestone is fulfilled
• Will help you create focus (limited resources)
• A proper defined metric will help you understand
your business
• If you are online, start measure before MVP
launched

29. Example: AARRR – Startup metrics for
pirates
• Acquisition: users come to site from various channels
• Activation: users enjoy 1st visit: "happy” experience
• Retention: users come back, visit site multiple times
• Referral: users like product enough to refer others
• Revenue: users conduct some monetization behavior

30. Campaigns,
Contests
ACQUISITION
Homepage / Landing
Page
Product
Features
Ads, Lead Gen, Biz Dev
Subscriptions,
ECommerce
Website.com
SEO
SEM
Apps &
Widgets
Affiliates
Email
PR Biz Dev
Direct, Tel,
TV
Social
Networks
Blogs
Domains
Emails & Alerts
Blogs, RSS,
News Feeds
System Events &
Time-based Features
Emails &
widgets
Viral
Loops
Affiliates,
Contests

31. BE CAREFUL WITH VANITY METRICS
31

32. When you know
• CAC (Customer Acquisition Cost)
• and
• LTV (Lifetime Value)
• = How much to spend to grow X times
It’s the best time to get Venture Capital…

33. Workshop
• How does your funnel look like?
• What are the key metrics in that funnel?
• How can you measure them?
• 20 min

34. Fund raising options
1. Be scrappy and boostrap – get to MVP and first validation without funding
– Shows that you understand how to build initial value in your company
– MVP with early proof points are worth significantly more than just an idea
– This is how repeat entrepreneurs do, although may not be possible for everyone
– Some contributions from Almi etc is possible
2. Customers
– Will pay you for a product even if it’s not completely ready, if it’s a must have
3. Family, Friends & Fools
– Severe risk of misunderstandings and backlash in relationships
4. Crowdfunding
– Depending on the idea type
– Fundedby.me, Kickstarter, InvestedIn, GoFundMe, Sponsume, Crowdcube…
5. Join an incubator or accelerator
– Easier access to soft funding (VGR/Almi/Innovationsbron)
– In some cases also seed capital.
6. Business Angels
– Local angels in western Sweden are few, but they exist
– There are a few networks of angels who co-invest
– Angellist ?
7. Venture Capitalists
– You will need major proof points for Swedish/European VCs
– In the US, network and track-record more important

35. What drives value?
1. Team – Completeness and track record
2. Product – Is it a Must Have or does it offer sustainable user delight?
3. Market – Proof Points, Traction, PMF and size of market
4. If you need the money or not –
If you’re cash flow positive and you don’t have to raise capital, youre strong!
5. Number of investors interested in your company in this round –
Always try to attract several investors in a round to play out terms & valuation
6. Lead investor & other syndicate partners –
A strong lead will attract other investors for you

36. Differerent types of investors
- Business Angels
- Invest 50K - 5 MSEK
- Either hands-off or very hands-on
- Piggybacking on others or Front seat investors
- Seed Funds
- 500K – 5 MSEK
- Hands-on involvement
- Less proof points needed (at a cost)
- VC Funds
- 5 MSEK – 100 MSEK
- Proof points mandatory
- Manages investments against clock
- Will wipe your ownership out if you don’t succeed
- The good ones have a strong syndication and exit networks

37. Two Journeys - #1
• Less experiences entrepreneur, no own cash and a team with
recruiting need from day 1
Seed A-Round
Owners % SEK
Founders 80 2M
Investors 20 0.5M
Owners % SEK
Founders 70 6.5M
Investors 30 1.5M
Owners % SEK
Founders 55 7M
Investors 45 3M
Owners % SEK
Founders 40 8M
Investors 60 12M
Team
MVP
Timeline
MVP
Validation
24-48 Months
2nd Seed
MVP
Validation
Users
growing
3rd Seed
Proven
Traction
Working
Bus Model

38. Two Journeys - #2
• Seasoned entrepreneur, bootstrap with own cash and a team with a
mix of business experience, product development and coding
Owners % SEK
Founders 100 0
Investors 0 0
Owners % SEK
Founders 85 17M
Investors 15 3M
Owners % SEK
Founders 70 28M
Investors 30 12M
Owners % SEK
Founders 55 55M
Investors 45 45M
Bootstrap
MVP
Validation
Users
growing
Timeline
Proven
Traction
Working
Bus Model
Category
“Leader”
Revenue
Growth
Scaling
Model
Proven
Angel/Seed A-Round B-Round
18-36 Months
VC clock starts

39. Q?
39

40. Understand the different requirements and
consequences
P/S-fit
P/M-fit
MVP
Growth
Verifieringsbidrag
Customer
”Utlysningar”
A-rounds
Big VC’s
Pre-seed
Incubators
Family office
Angels
Almi
Seed
Angels
Small VC’s