Riku and the beat
Riku Seppälä

Startups doing game changing things are my passion. VC at Open Ocean Capital. @rikutter

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February 28th, 12:00pm 2 comments

Formula for a minimum viable first pitch learnt from the best

I hear a lot of short pitches. Many are too short. Most too long, people start rambling. 

They usually don't reach a level of "minimum viable pitch". A minimum viable pitch would give the listener enough information to know if he's interested in hearing more or not. Then you can start formulating questions or get back in touch later.

And because first impressions count, a lot of opportunities are lost because of this.

I did some research into pitches, mostly how Steve Jobs did it and created a formula for a minimum viable pitch:

  1. Describe the problem in a way that the listener can relate to (or believe).
  2. Describe what you're doing, focusing on what's different with it.
  3. Describe how it's going to change the world.

And try to keep it that simple. I'm sure there are a lot of ways to do even better pitches for every business, but usually people don't even reach a minimum level. If you are sure you can do it better than with that formula, do it your way. Usually though the best pitchers stick to a format they know and don't make it too complicated

Maybe you can try it on your idea or company and write it in the comments? Would be interesting to see how it works for you.

I'm going to show one example. (Sorry, really busy now) I randomly picked a company that was recently added to crunchbase: Coderwall

Coderwall:

Current pitch: "Coderwall is a site for developers to profile what projects they are up to and learn from others."

MVPitch: "Development skills are needed but it's difficult to learn how to code. The best way is to learn from others but it's difficult to set-up. We've created a site where developers automatically profile what they're working on, learn to code and become experts with the help of others. There are a lot of people out there trying to learn how to code or wanting to learn, but it's hard. We're going to make it possible for a lot more people to become good coders."

Disclaimer: The pitch is not the most important thing in your startup, but you should be able to get it right. Otherwise there's something wrong. 

Remarks:

If what you're doing actually doesn't solve a problem, you don't have a compelling solution and it can't really change the world, this will not work, but no pitch in the world will. Change project.

Even though the formula is short, you should take time to figure out alternatives for each of the three steps and then find the best combination. Maybe ask your friends for input as well, an outside perspective will help a lot, and giving them a formula to follow should maket it easier to gather good-quality feedback.

Why do people have this problem?

There are lots of reasons for non-viable pitches, but mainly it's because of the knowledge gap between the pitcher and the receiver.

People just have a need to cram too much knowledge into their pitch.

If you try to cram all of the important aspects of your business into one sentence it becomes incomprehensible. Something like "A universal distributed automatic connector". I guess that could mean something, but I have no idea what it actually is.

 

Filed under pitch
Posted
December 8th, 8:34am 1 comment

Printing multiple PDF's in excel with VBA

I noticed there are no really good resources for learning VBA on the web, so I'm sharing some simple code snippets.

I have created a workbook with about 50 automatically updating sheets, and I need to print them as pdf's. So I quickly created a VBA script to do this. 

What this code does is that it prints sheets nr 9-39 with the filename "MyFile_" + [name of the sheet] in the folder where the workbook in question is located.

Code:

Public Sub printPrivateInvestorPDFs()

    Dim FilName As String

    For Count = 9 To 39 Step 1

        Sheets(Count).Activate

        FilName = "MyFile_" + ActiveSheet.Name

        ActiveSheet.ExportAsFixedFormat Type:=xlTypePDF, FileName:=FilName + ".pdf", Quality:=xlQualityStandard, From:=1, To:=3, OpenAfterPublish:=True

    Next Count

End Sub

 

 

For getting help with VBA problems, I found this user group really helpful: https://groups.google.com/forum/#!forum/excel-macros

Posted
October 13th, 4:44am 0 comments

Beautiful explanation of economical changes and where the world lies now

Here's a beautiful explanation of the underlying changes of current unemployment, restlessness and what needs to be done to get the economy into a new "golden age". I don't want to comment more on that, everyone needs to watch the complete video.

 

Posted
July 20th, 3:05pm 0 comments

Forget creating one "corporate look" for your company

You might think that the logo and look of a company isn't such a big thing. I disagree. A first impression is always important, and I also think that companies should take the time to create a good and representative "front" for their company. If they don't, I expect them to be a muddle on other issues as well. 

I was thinking about this one day, that brands should take more liberty with logos and colors. A brand is of course not about logos and colors, but about what you do. However, people tend to spend a lot of time on logos and colors. Most companies have rules about what background their logo is allowed to show up on and how much space there should be around it... 

I really think that's a wast of effort and counterproductive. Forcing your brand into a mold will always, always just make it seem boring after a while. All brands stagnate, that's because they're not given the chance to evolve. Not on the business side, and definitely not on the design side. 

Burton Snowboards does it really well, each year, they have new logos. They also re-use old ones. You can sort of have a personal connection to one of the old logos. And they're not set on a couple of colors. It makes their brand much more flexible. 

Workers at Burton have more artistic freedom. You're not in this huge machine where everything has to be standardized.

I think more people should do it like Burton does it instead of focusing on their "color palette" and what background it's ok to show their logo on. You'll still be able to get your brand message out, it's just going to be more exciting...

 

Posted
July 10th, 4:44pm 0 comments

Will web startup valuations fall because of Facebook?

I'm certain that G+ will be able to take some market share from Facebook. For some use-cases it's just better, and people are switching to G+ from FB. 

If now this becomes a real battle and FB is not seen as "the social network" of the future anymore, its already hyped-up 80b valuation is going to go down, a lot. We used to see FB as a future money printing machine. They just had to be able to scale up their revenues a little, and no one could ever slow their growth.

What if that's not the case? 

We've never really seen a possiblity of such a rapid decline before in these valuation classes. In just weeks, millions of people can completely switch product from FB. The switching costs can come down to zero, if for example it's easy enough to find all of the same friends on G+ as we have on FB. 

Now, if this is shown to be true, that a 80b valuation can suddenly drop down to say 10b, I think we'll see a decline in investments in web startups and valuations will go down. It's just a risk no one thought was really there. 

Posted
July 7th, 12:47pm 0 comments

The undeniable logic of photo-sharing in G+

Just thinking that I can snap a picture and easily choose to only share it with my closest friends. And the picture stays private without anyone having the right to distribute it. It's a game-changer for me. 

It's something I know that was missing, but it's a huge thing to change, actually doing it and getting people to use it is difficult. Many startups have tried but failed. I'm really happy Google did it, they were probably the only ones who could make that happen. 

What's going to happen to diaspora now?

Posted
March 10th, 9:38pm 0 comments

I want to gather the best resources for technology in learning

I wanted to test out Google Moderator, so I create two sites: Questions about technology in learning: http://goo.gl/mod/3KXN Ideas about technology in learning: http://goo.gl/mod/U505 Actually, I thought Google Moderator was a very interesting project, so I wanted to create something using the system. I haven't found any great resource or collection of ideas and questions of technology in learning, so I think that would be a good place to start! I hope you like it and I hope Google Moderator will work well for this! UPDATE: While Google Moderator is nice, I find it a bit confusing and it's difficult to find information in it. I moved over the discussion about learning technologies to my list of learning technology
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Posted
November 14th, 10:32pm 0 comments

My Blog About Learning

I want everyone on the planet to have the same opportunities to learn. I mean learning isn't very efficient today is it? Why do we have to put down 1000 hours to stuff that other people have already learnt, isn't that a bit silly? Why is it so hard? And why can't I remember what I've learnt? Maybe it's just a little bit more difficult for me to understand but I think technology will make learning a lot more efficient in the future. I'm writing a blog about learning here: qbaka.com   (moved it from learning.seppa.la to qbaka.com)
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Posted
November 2nd, 9:40pm 0 comments

The Admob data IS relevant to Nokia

Admob just released some data about mobile web usage. It shows that Apple is the market leader in mobile web usage with 40% of traffic coming from iPhones and iTouches. You can read the article about the data here.
Some people have claimed that based on this it's wrong to say that Apple has a 40% market share of smartphones. Well, that may be, but I would definitely say the data is relevant to Nokia, maybe even more relevant than the positive data showing an increase of Nokia smartphone market share.
The data on smartphone market share says that Nokia is still clearly in the lead with 43% of the market, for example this blogpost by the writers of "Communities Dominate Brands" states the facts pretty clearly.
However, Nokia's strategy is to become a service provider more than a handset maker. The actual handset is becoming a commodity, it's nothing more than a touchscreen that can communicate with the outside world in different protocols.
The important thing is what you can do with it, ie the Apps (calling is an app as well). Also the content is of course important, what you read and so on, for example twitter and Facebook. We don't actually use the phone, we use the apps inside of it. So the apps are important, and all the innovation is now done in the apps. That's where the money will be in the future - Ads, Games, Apps...
The Apps are created by developers, and the more users for Apps, the more monetization possibilities for developers, which also means more innovation. Here Apple is the clear leader, and the fact that it dominates the mobile web market is the evidence. The appStore has also paid off.
So clearly Apple is in a situation where Nokia would like to be - a content and service provider.
I also think that the markets where Nokia dominates now, for example China and Africa, will follow suit in adopting iPhones, if Nokia isn't successful in developing an ecosystem like Apple's that just works. The N900 is a good start, and I'm very eager to see how far it gets Nokia. I can't understand the lack of innovation around the N900 though. Again, Nokia is just concentrating on what you have in your hand, not what people do with it.
So don't come telling me that Nokia is the winner because they're selling the most handsets in a commoditized market with falling margins. I know they don't feel like winners.
Filed under Apple Nokia Strategy
Posted
October 2nd, 9:37pm 0 comments

Paths to Entrepreneurship: Part 1. Get started

(Cross posted from the Aaltoes blog: ) Forget what you've read, entrepreneurship is not about getting a great idea and then working very hard. It's a dangerous simplification of entrepreneurship, and actually very few successful companies are created that way.

In this post I'll describe 3 of the more common paths to successful entrepreneurship that we have identified in Aaltoes. The goal is to be able to provide some guidance on what to concentrate on in case you are a student and interested in becoming an entrepreneur.

3 Paths:

1. Be at the forefront of technological development

Some of the more known entrepreneurial success stories are based on a group of students that have acquired specific technological knowledge and gone on to create great companies. Stories such as Microsoft, Apple, Oracle and F-Secure have been created in this way. So if you're very good in a field which is not very developed yet, and few people are very good at, you have a good chance of creating something that is possible to commercialize.

I think IT is already too big and developed, but you never know. (Update: I wonder why I thought that, right now I don't think that way at least...) The problem is that you can't really focus on bio- or nanotech in your own backyard because you'll probably need a cleanroom and some pretty expensive equipment...

2. Find a problem and be able to create the solution.

A lot of web startups are being formed these days, and the ones that survive are the ones that fulfill a market need. In case you do identify a market need, you also need to be able to create the solution. And market it. The reality is that any web startup that wants to get traction these days needs to have a massive marketing budget to be able to break into the market. That of course requires investment, and unless you've already created a company as described above, or worked as a director for a big company, you will not get it. Not for a web startup. Web startups are good examples of companies that are created to solve a problem, but they're not really difficult to create or duplicate and the Intellectual Property (IP) is difficult to protect. There is a huge number of developers around the world capable of doing the same thing. And there will be someone solving the exact same problem that you are. The one with the best connections and best knowledge will win, which is probably the one with the biggest marketing budget as well (or not, ouch, just look at Color...)  

There have also been examples of teams that have identified a problem, for example mobile email (back in the days...) or created an application for an industry in which they got experience from during a summer job. In these cases, the difficulty becomes finding a great team which is committed to creating the product. It can be a good opportunity while you are studying since you might not need any income from the project. So focus on solving problems and creating the team that can solve it.

3. Be a researcher or connect with research

If you're a researcher, you will get paid and have resources to be at the forefront of technological development. It is probably easier to become a researcher and create something new than to be at the forefront of development yourself. For business students, the real opportunity is to network with researchers and find an interesting technology to commercialize or jump on board early in the companies development.

These are the entrepreneurial paths I think are the most realistic for students to become entrepreneurs. It's a lot about being active in the entrepreneurship community and networking and creating a great team. You also need to know where you stand. If you're not developing new technologies yourself and don't have a lot of experience in an industry you have very little possibilities of developing your own idea into a startup.

Aaltoes was created to help you start in one of these paths:

1. Attend our networking events and connect with other students that are interested in solving problems. Maybe you can find someone with great technological skill or the business visionary you need to commercialize your skills. Getting a committed team before you even now what to work on can also be valuable.

2. Attend our Technology Safaris and connect with research that you can commercialize as part of a team.

3. If you already have a solution to a problem but lack the skills to make it happen, join our Pitching Evenings and get your project jump started.

One of the points I want to make is that companies are not created by a group of business students thinking about different ideas. They might come up with a new sort of consulting company or a new way of distributing school books, but the ideas will be constrained by their experiences and knowledge. In addition, even if they can identify a good problem to solve, it will most likely require more financing and resources than they will be able to gather. Anyways, probably the most important thing to do is to create a great team which has the required technical skills to pull something off. "entrepreneurship is not about getting a great idea and then working very hard" Entrepreneurship is about solving problems or using new technology to solve problems and having a great team that can execute. Riku

Posted