Monday, September 7, 2015

4 Stages Of Startup Lifecycle

Understanding where a startup is in their lifecycle allows us to assess their progress. The startup lifecycle is made of 4 stages of development. This creates a directed tree structure and allows for more granular assessment by being able to pinpoint the main drivers of progress at stages.

Our four top-level stages are based loosely on Steve Blank's 4 Steps to the Epiphany, but one key difference is that our lifecycle is product centric rather than company centric.

The 4 Stages :

1) Discovery

Purpose: Startups are focused on validating whether they are solving a meaningful problem and whether anybody would hypothetically be interested in their solution.

Events: Founding team is formed, many customer interviews are conducted, value proposition is found, minimally viable products are created, team joins an accelerator or incubator, Friends and Family financing round, first mentors & advisors come on board.

2) Validation

Purpose: Startups are looking to get early validation that people are interested in their product through the exchange of money or attention.

Events: refinement of core features, initial user growth, metrics and analytics implementation, seed funding, first key hires, pivots (if necessary), first paying customers, product market fit.

Startup With Solution

3) Efficiency

Purpose: Startups refine their business model and improve the efficiency of their customer acquisition process. Startups should be able to efficiently acquire customers in order to avoid scaling with a leaky bucket.

Events: value proposition refined, user experienced overhauled, conversion funnel optimized, viral growth achieved, repeatable sales process and/or scalable customer acquisition channels found.

4) Scale

Purpose: Startups step on the gas pedal and try to drive growth very aggressively.

Events: Large A Round, massive customer acquisition, back-end scalability improvements, first executive hires, process implementation, establishment of departments.

Disclaimer : The following article came from Startup Compass