9 insights on Strategy, Product and Creatives from one talk or podcast, each with the quote and a link to the moment it was said.
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Qualifying investors is crucial for first-time fundraisers, and there is no one-size-fits-all approach. However, a best practice includes having a scorecard system for sourcing investors.
Building a consumer app’s MVP and how to fundraise with Zest’s Jake Gutstein at 46:25 · Featured in Growth Gems #117
Jake was kind enough to share the Template for his Sample Investor Tracking Game.
Get as much live, candid feedback from as many investors as possible and quickly iterate based on it.
Building a consumer app’s MVP and how to fundraise with Zest’s Jake Gutstein at 42:30 · Featured in Growth Gems #117
Jake talked to 130 investors, one reason being that some investors tend to be wary of churn.
Something else I’ve been impressed by is how Jake keeps investors and people he’s been in contact with updated on progress via monthly updates, which also allows him to put out “asks” that help his business. He uses paperstreet.vc for these. Very smart.
Here is an example:
Zest’s investors & contacts update
Many challenges in raising funds come from an “articulation gap.” What matters to investors are CAC, LTV, and payback period, and you need to both speak their language (de-risk the areas where their minds will jump to) and articulate the product vision.
Building a consumer app’s MVP and how to fundraise with Zest’s Jake Gutstein at 44:15 · Featured in Growth Gems #117
While it makes sense to validate a business idea while still working a full-time job, at some point, you have to give it a real chance and set a clear deadline. Example: Zest’s team set a three-month deadline to secure funding for the next 12 months and establish a clear development path.
Building a consumer app’s MVP and how to fundraise with Zest’s Jake Gutstein at 12:25 · Featured in Growth Gems #117
It’s important to get started, though. The 4 co-founders from Zest were initially meeting twice a week to make progress.
Instead of thinking about “launching,” take a “continuous prototyping” approach, engaging in rapid iterations towards improvement. This mentality of prototyping and “everything as unfinished” can be applied to both business processes and business performance.
Building a consumer app’s MVP and how to fundraise with Zest’s Jake Gutstein at 34:37 · Featured in Growth Gems #117
Building a product should focus on time as a limited resource rather than fixating on a product launch. A six-week timeframe allows for “fixing on time” and building something substantial while keeping the end goal in sight: you give yourself six weeks and make tradeoffs to be able to ship what you committed to.
Building a consumer app’s MVP and how to fundraise with Zest’s Jake Gutstein at 20:00 · Featured in Growth Gems #117
This is taken from the 37 Signals book by Jason Fried and David Heinemeier Hansson.
Jake also explained that as a founder, you have to accept the reality of the current situation and focus on controlling input rather than being beholden to hitting metrics. Living in the past or future is not useful; instead, concentrate on what can be achieved in the present moment.
First validating your idea can be as simple as combining JotForm, Venmo/CashApp, Google Slides, and SMS._ Example: Zest had a Google Form allowing them to create a meal plan for users, and once they paid, they would share the meal plan in Google Slides and send the grocery list via text._
Building a consumer app’s MVP and how to fundraise with Zest’s Jake Gutstein at 5:50 · Featured in Growth Gems #117
Here are more details about the flow:
Potential users would fill out a questionnaire on Jotform
On the last question, they would give their Venmo/Cashapp info
After payment, Zest (going by Salus at the time) would distribute these Google slides (the meal plan)
A few slides from Zest’s MVP
If you try their app, you’ll notice some of the tone and concepts (e.g., quick how-to videos) were already in the slides!
One caveat to the friends & family method is that they might not represent a broader audience or take pity on you instead of giving you candid feedback.
For this reason, Jason mentioned that buying traffic on Facebook and sending it to a landing page might give you a better signal. But from there, it’s ok to keep it simple if it helps validate (or not) faster.
Instead of focusing your organic/influencer content (e.g., TikTok) only on your potential users’ stated goals, think about the context they are struggling in. How can you partner with people who talk about the moments and reasons customers begin their journey? Example: rather than partnering with amazing food creators, Zest looks more into people who talk about the moments in life that lead them to want to cook (e.g., being lonely, providing, having agency over their life, saving money, etc.).
Building a consumer app’s MVP and how to fundraise with Zest’s Jake Gutstein at 49:00 · Featured in Growth Gems #117
In user research, don’t ask, “Do you want to X?”. Instead, ask, “When did you decide to start to X?”. Example: “When did you decide you wanted to learn how to cook?” instead of “Do you want to learn how to cook?”.
Building a consumer app’s MVP and how to fundraise with Zest’s Jake Gutstein at 11:15 · Featured in Growth Gems #117