Sean Percival from 500 Startups taught the entrepreneurs to sell their momentum with help of metrics that are essential for investors.
In order to get investment for your startup you need the quality data, because knowledge is power. Investors might ask you for data as a test to see if you can “find the needle in the haystack”. In order to prove your business idea, entrepreneurs should show future thinking and show how they are improving over time.
Startup metrics are a gauge of what is happening to the business, essential when it comes to understanding the viability of a business or pitching for investment. Sean provided a list of key metrics, including CAC (Customer Acquisition Cost), CPL (Cost Per Lead), CPC (Cost Per Click), and CPM (Cost Per 1000 Impressions), all crucial for early-stage businesses in order to survive, get users, and estimate profitability.
The churn rate is especially important for internet-based startups, as they must constantly analyse the inflow versus outflow of users to spot trends and understand the reasons why people leave.
Sean advised not to make forecasts, and to take advantage of online marketing as the cheapest and easiest way to get started. Get 100 to 1,000 people to love your product and build your company on that.
Charlotte Irene Sørensen, founder and CEO of Technoport 2016 Pitch Camp winners Voico, was fully satisfied with the seminar.
“The seminar was productive and useful for companies who are just starting and not familiar with all the metrics for investors pitching”, she said.
“I have never heard of or used startup metrics before. I am going to check all the information that Sean has provided to get in depth for the business development and use the metrics for the future”, she added.
Companies from different industries and stages of development were in attendance, yet everyone found useful information for their business. Magnus Bjørnsdal, B2B entrepreneur, found the seminar very productive.
"Sean Percival shared his experiences, tips and advices that I can use further when my business will grow and be more mature", he said.
Kamran Saleem Soomro from Myworkout AS was seeking ideas to develop his own business.
"The seminar was a helpful platform. The questions that the startups asked, their challenges, knowledge, ideas and future visons, were a great motivation for my future business".
Sean Percival concluded: “It was a good interaction for startups. Even though some of the material won’t help them right now, they can use in the future. At least, the startups will be familiar with all acronyms and can jump into the business right now and use a right moment for your business to grow. As an investor, I focus on metrics as an essential requirement for investment pitching. There were lots of interesting questions. Businesses in Norway are so much more technically-focused and they face a less mature entrepreneurial environment and less sophisticated investment environment in Norway, so they need to be aware of essential startup metrics when they look to the big world for investments. There are a lot of opportunities in Trondheim that startups should take right now.”