How the Seed landscape changed in last 10 years. And why you need a Minimal Viable Product to get investment.
The startup world did change a lot in last 10 years. New technologies, new trends, a lot of wins and even more fails. Jason Calacanis, a serial entrepreneur and investor, brings it to a point: “If you are a founder who has great ideas and is good at writing business plans, you are going EXTINCT. NO ONE CARES ABOUT YOU anymore- unless you’ve had exits that made people money.” Or you have a Minimal Viable Product which investors expect to see before seed investment.
MVP is a good way to:
- Transform your idea into concrete product features which is a challenge for the most inexperienced entrepreneurs [this part is usually done by a product manager]
- Think through the user experience for your product [it is of no use to create only features, more important is to find a user-friendly way to combine them]
- Create good designed product based on features and usability
- AND FINALLY to test on real customers if they need your product and need the product the way you built it.
The most common mistake of young companies is that founders think: “We need money to build a great technology, because we need to overcome this and this competitor. Let our product be more technology-driven and innovative! In most cases, this approach requires a lot of money. And in most cases again, those companies fail. Because development takes a lot of time and they create a product
- nobody needs and/or
- is developed in a wrong way.
At this stage the money is spent and the game is over.
Don’t do the same mistake!
Start to transform your idea into a product straight away and you will see how fast you will get in touch with product features you have never thought about. But exactly those features could be THE CENTRAL ELEMENT why your business will get to the next stage. Test the MVP with first customers and decide how to proceed:
- either bring your product to the next stage or
- build something different.