Scaling the $ in $tartup
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Transcript of Scaling the $ in $tartup
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Scaling the $ in $tartupSebastien de Halleux – Playfish co-founder
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BelgianCivil EngineerTech EntrepreneurAngelGlu Mobile: nasdaq IPO ($337m)Playfish: sold to EA ($400m)Samasource, Vittana, UWC + ‘X’
facebook.com/sdehalleux
money & metricspath to profitabilityinvestor viewpoint
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money & metrics
Productacid test
Define yourcustomers
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Define your
funnel
Companyvaluation
Why making money matters
idea
$$$
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Understanding your funnel
time
+$$
-$$
Choosing metrics: product
Success = F (P, Q)price quantity
time
+$$
-$$
Choosing metrics: service
Success = F(α, β, γ)virality, engagement, monetization
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Scaling: track your bottlenecks
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path to profitability
Define your scale challenge
gameclient
gameserver
socialgraph
canvaspage
Fast CDN
Secureprotocol
RestAPI
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variable exp = secret of unlimited scaling
The nimble ninja
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the cloud
Apple – Dell - Google – Skype – Ikea – Aeron – Payroll – Accounting - etc
Employee service stack
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blue ocean scalingCreate a new utilityFun from playing with friends
Eliminatedistribution costsDesign for viral distribution
Reduce development costsRelease early, run as service
Raise monetization ceilingMicro-transactions & advertising
Make mistakes, and iterateMeasure Nurtur
eEvolve
Think: what will your feedback loop consist of?Build: a product & team capable of adapting quickly to feedback
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investors viewpoint
“No battle plan ever survives contact with the ennemy” – von Moltke
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Forecasts are usually (dramatically) wrongKeep your plan shortPrototyping is key to test your ideasTimebox your developmentHelp us visualise / experience your solution
Planning: www.sequoiacap.com/ideasBuilding: must be able to hand prototype over to a test user
Build don’t plan
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When traction, think BIG, think FAST
Ensure cash is not a limiting factorGo global early – new growth modelHire the very best people you can affordCreate constant feedback loopsChange the world
Show revenue potential
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Show scale potential accessbarriers
audience50m 100m 1Bn500m10m
PS3
Xbox360
WiiiPhone / mobileFree-to-play / online / social
Lower cost
More real
More social
More immediate
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Show moneymetrics
path to profitability
Deliver revenue model (5y)
income statementcash flow
projection
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questions & answers