The Scalability Tool 

 

The high rate of startup failure is a big problem

 

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.

 

Large High Failure Rate Cycle

 

What solution does The Scalability Tool provide?

 

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.

 

 

Large Reduced Risk Cycle

 

What makes this tool unique and different?

 

Convenient and easy to use

 

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.

 

 

 

Report Pages

 

 

A comprehensive framework

 

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.

 

The Scalability Keys Pixed Gray Heading Rounded

 

Proprietary Scoring Algorithm

 

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)

 

 

Scalability Grid Pixed Title Gray Rounded

 

Lean Startup Alignment

 

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.

 

 

Growth Curve with assess here detail

 

 

How does the Scalability Tool work?

 

Step 1:  Assess Scalability Potential

 

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.

 

 

Cropped Step1 Assess Screenshot

Step 2:  Adjust the Business Model

 

Use the Scalability Potential Assessment Report to identify and review the largest gaps that are impacting the startup.

 

Cropped Dashboard Bars #1

 

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.

 

Cropped Adjust and Action Screenshot

 

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