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Raising Money Using Customer Development (steveblank.com)
24 points by bhousel on Nov 5, 2009 | hide | past | favorite | 2 comments



Great post. In particular, I liked the part about the "Hierarchy of Proof" in pitches:

On the bottom, and least convincing are statements about your “idea.”

Next are hypotheses – “I think customers will care about x or y “

Better are facts from customers – “We interviewed 30 customers with 20 questions”

Even better is “Customer Validation”– “We just got $50K from a customer” or “we got 100,000 users spending x minutes on our site”

Finally if you’re ever so lucky – “Everyone’s buying in droves and we’re here because we need money to scale and execute”

If you’ve actually been doing Customer Development at a minimum you’re at step 3 or 4. If not, you don’t have enough data for a VC presentation. Get out of the building, get some more customer feedback, spin your product and go back and read the book.


Wow, these slides from IMVU's investor pitch are awesome: http://steveblank.files.wordpress.com/2009/11/slide1.jpg




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