How fundable and scalable is your startup?
primarily due to:
A business model improvement framework for pre-seed and seed-stage startups and ventures.
An online tool to help you assess and improve your scalability potential and investment readiness.
Most startups fail to build scalable business models that are attractive to investors!
90% of startups fail primarily due to pre-mature scaling and poor product-market fit*
Pitches, diligence activities and mentoring discussions, for seed-stage startups, often vary in substance and rigor. This leads to poor deal flow and low funding success rates.
*Startup Genome Report Extra on Premature Scaling, March 2012.
The Scalability Tool helps venture capitalists, angel investors and seed-stage startups to:
reduce… failure and funding risk
improve... business model scalability
The Scalability Tool’s comprehensive “best-practice” framework and proprietary scoring algorithm creates a transparent and common platform that allows investors, mentors and founders to:
1. Conduct a consistent and rigorous assessment of scalability and fundability potential.
2. Enable frank, meaningful and insightful business model “gap” and improvement interactions.
The tool is available on-line, is affordable and easy-to-use. It enables you to achieve two goals:
1. Assess Scalability Potential
against tough requirements typically expected by investors and advisors.
2. Adjust the Business Model
by taking action against key items needed to close the identified gaps.
The 12 Scalability Keys serves as the framework for assessing and improving Scalability Potential.
The phases and keys represent critical factors that impact pre-seed and seed-stage scalability.
Each key drills down further to reveal a detailed and comprehensive set of scalability drivers and requirements.
Scalability Potential measures the likelihood that a seed-stage startup will achieve scalable, profitable and sustainable growth.
A proprietary rating system and algorithm is used to score Scalability Potential for the startup as a whole as well as for each Scalability Key.
It also scores and maps the startup across two dimensions:
- Is this a big idea? (Market Entry Capability)
- Can we make money? (Commercial Opportunity)
The 12 Scalability Keys framework and Scalability Tool (for pre-seed and seed-stage startups):
- Is grounded in real startup and investment experiences as well as lean startup methodologies and principles.
- Aligns closely with Steve Blank’s Customer Discovery phase.
A. Capture the key insights and facts that highlight the current business model status (for each focus area you are assessing).
B. Rate how well the startup meets the “standards of excellence” that are typically associated with successful scalability.
Use the Scalability Potential Assessment Report to identify and review the largest gaps that are impacting the startup.
Ideate and capture key issues or items that you need to prioritize and action in order to improve the business model, scalability potential and funding prospects.