Ajit Nazare at Kleiner Perkins has 7 rules for software start-ups they consider funding. I was on a "future of software" panel at TiECon East yesterday with Ajit Nazre, partner at Kleiner Perkins. Several interesting trends emerged from the panel discussion, but the 7 rules synthesized everything for me.
KP's 7 rules for start-ups
- Instant Value to customers - solve a problem or create value with the first use
- Viral adoption - Pull, not push. No direct sales force required
- Minimum IT footprint, preferably none. Hosted SaaS is best.
- Simple, intuitive user experience - no training required.
- Personalized user experience - customizable
- Easy configuration based on application or usage templates
- Context aware - adjust to location, groups, preferences, devices, etc.
Most start-ups will not align with all 7 rules. But, if you don't follow at least 5 of them...rethink your plan and business model.
UPDATE: Ben Barren has a unique perspective on the 7 rules. Nicolas Toper also has interesting views.
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I don't know; I think several of those are very good "rules" for startups but the rest assume that every startup is going to have the same value curve for it's customers. While "personalized user experience" may be a "must have" for a web 2.0 or a software company, there are a lot of businesses where that is so irrelevant and of no value whatsoever to the customer. Maybe it should be "7 Rules for Web 2.0 Startups"
Posted by: David Adams | June 23, 2006 at 03:29 PM
Thank you all for your comments and insights. I agree with you that these rules are focused primarily on Web 2.0 style start-ups, and don't apply completely to traditional software. However simple the rules may be, they are important to consider in formulating your product vision.
Taking off from the old EF Hutton TV commercial, "when Kleiner Perkins talks...people listen".
Posted by: Don Dodge | June 23, 2006 at 05:08 PM