Firmhouse Venture Labs

Presentation at VentureCafe - 27-07-2017

Introduction

Robbert van GeldropPartner at Firmhouse & Lean Startup Circle NL

Twitter: @rvangeldrop | robbert@firmhouse.com

firmhouse.com

Vision

Startups easily turn into expensive hobbies. We believe the world needs more healthy and stable businesses, fewer all-or-nothing moonshots. Building these businesses is hard work, therefore everyone gets a piece of the potential success.

Why do startups fail?

From CB Insights: https://www.forbes.com/sites/groupthink/2016/03/02/top-20-reasons-why-startups-fail-infographic/#589b35e83911

Seems like a bad idea

Great idea

SWEETSPOT

Can it be built?

Can it be built?Should it be built?

Ventures

Startups

• Linux

• Mozilla

• Ethereum

Example ventures that are not startups:

A VENTURING PROGRAM FOR ENTREPRENEURS

Healthy businessesLearn about problems to solve

before starting up and committing to the wrong product.

Form the right team Work with each other and get

guidance on forming a complete team.

Explore optionsTry out multiple things. Run

them as small projects. Team up with fellow participants.

• Important precursor to the infamous product/market fit

• Deep knowledge of a market, technology or both

• Advanced skills to make things happen, for example:

• Being able to code, design or copywrite

• Natural sales person

• Bias towards action - you produce stuff

• Ideally you have domain expertise and advanced skills

Idea/founder fit:

• Entrepreneurial people - who are very good at multiple things

• Learner’s mindset - understand that an idea needs to evolve by learning

from customers and their problems

• Makers - they create things as a measure of progress

Who are we looking for:

Program Details

A PROGRAM FOR THE ENTREPRENEUR

Tailored educationNo fixed program, but

calibrated to the needs of the participants

Small mentor poolHandpicked mentors follow

you intensely

3 months of runway1200 euro cash in hand each month to cover cost of living

• Producing useful software which solves hard business problems • Utilize technologies like Machine Learning, Blockchain or Mixed Reality • Learn to execute in small projects and experiments before committing

to an idea, product or a startup • A mix of entrepreneurs and intrapreneurs - we will allow for max 3

corporate teams to participate in the program

Program focus:

Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6 Cycle 7Cycle 1 Cycle 8

First bi-weekly check-in Share first progress

1-week onboarding Focus teams, set goals and

prepare for first check-in

Form teams Investor lunch

Kick-off next batch

Closing Event

Program setup & flowOperates in cycles of two weeks, year round.

4-5 on boarding moments for new teams.

2 weeks

Workshop Duration Description

Business modeling Half day Learn how to use Business Model Canvas

Business 101 Full day How to setup and structure a business

Agile & Lean Startup Full day Learn about Agile and Lean Startup to work iteratively

Customer Development Half day How to talk to customers to learn the most from them

Experiment Design Full day How to test your ideas and riskiest assumptions

• No fixed program • Onboard & calibrate in the first week of the program • Dedicated and experienced mentors • Bi-weekly check-ins to share progress with peers

What makes our program different:

1. Participants report to each other on their progress in two week increments

2. Check-ins are meant to create accountability and focus, mentors might be involved to structure conversations and stay in the loop

3. Consider projects which you want to collaborate on with other participants and/or outsiders

4. Model has been proven to generate good focus and alignment on progress of the internal ventures at Firmhouse

The bi-weekly check-in

• Instead of relying on demo-day for pitching to a big crowd of investors we organise lunches with pre-selected investors.

• We will hold a Closing Event. This will be a conference at the VentureCafe in which participants can share their learnings.

Investors lunches

Investment

WE INVEST IN REVENUE FOCUSED BUSINESSES,SOFTWARE AS KEY COMPONENT

Early revenueTeams have paying customers or are days away from closing

significant deals.

Team committedFounding team is committed

full-time and have all the skills to build their company.

Only B2BWe only invest in businesses

that sell their software product to businesses.

Diederik DolkDealmaker & investor

Robbert van GeldropEntrepreneur & investor

Investors

Has a background in corporate venturing for a large energy company and has invested in 5 startups to date, including Storegear and SHIPX.

Sold his software company to Acronis and is now a shareholder in Firmhouse. Robbert will operate the program and guide the entrepreneurs.

Paul BakkerAdvisor & Investor

Paul spearheaded the development of the Crypto department at Fox-IT. After 7 years he focussed on building PolarSSL which was acquired by ARM in 2014.

Notable investments

1. Incorporate your business with help of Firmhouse in return for 5% of the company

2. Get additional investments from Firmhouse’ partners • At least 50k euro from Firmhouse own investors • Additional money from other investors if possible and needed

3. Continue without us, no strings attached

Options at end of the program

1. €50.000+ investment for substantial minority share 2. Firmhouse Venture Lab will help you set up your company properly 3. Continued mentoring and support

Investment offer to qualifying teams

1. Complete team 2. Traction with first customers 3. Large potential in a B2B market

Investment qualifications