Today was the practice demo day. Although we were somewhat prepared, the one part of preparation we didn’t practice was timing, and therefore took 9 minutes instead of 5.

The demo presentation went really well considering the computer difficulties we had. We were given feedback to be more sure of the business model (have premium version without advertisements?), to only show the demo on the phone emulator (as we showed it via online first, and then the phone), to place a thank you slide at the end, and to explain how the customer could set the location reminder on the platforms we are developing the application for. Jahva however gave us positive feedback, saying we introduced ourselves, as well as the problem Refetch addresses well. In addition, he said we interacted really well with the audience as well.

That was all for today, cheers!

Refetch spent the day working on creating a demo presentation for the next day. Although a first draft was found to be unsatisfactory, team Refetch worked hard to fix up a version worth presenting.

We had to focus down the business model from having B2B and B2C ideas, to only B2C. This was because we had to have a clear target group, which we defined as:

-          20-45 year old

-          Man/Female

-          GTD Focused

-          Very busy business person

Another thing that was decided on was the beginning slogan: “Reminder when and where you need it!” A third decision made was how revenue would be made. Mobile advertising space would be sold to retail outlets, supermarkets, and other commercial chains which would provide revenue, as the advertising would relate the customer to the advertisement via location.

In the end, it was a productive day. Till practice demo day, that’s all folks!

Fun, that’s the word that summarize the events of today!

The day begun with confusion about responsibility over the bbq that would be held later in the afternoon. However, that was quickly resolved as team Pamoja took responsibility as hosts, so thanks goes to them!

Then came the pitches. First, we pitched to several Finnish ministers who were here to see how the program was like, and whether the program should be expanded to a more wide audience. Then afterwards was the persuasion speech, where we had to define a scenario and who each of the three judges were. We gave a 30 second pitch to imaginary angels, and to be honest, it went really well! The feedback we got was that we need numbers, we need to have a first customer, we need to be incorporated, and we should always provide a gift, as well be courteous (thank them for their time). At the end, we all gathered for the bbq where we spent the day mingling amongst our team members, enjoying hot dogs and several cold beers. What a day…

& Yes, we managed to test Refetch for the first time, and yes, it worked! Though not done, it was nice to see it working on the iphone 4. Well done team!

It surely was an exciting day for team Refetch, as we were allowed to hear the experiences from the US ambassador of Finland (Bruce Oreck), as well as one of the most active angel investors in Finland, Ari Korhonen.

There were numerous things we learned about Angel’s, and how they chose their potential groups of interest. One of the points we heard today again, like we heard yesterday from Juha, was that in the early stages of investment, the investment made by an investor is on the team itself and the competences it has. Secondly, there was discussion of several terms. Dilution is when adding new investors; each current investor must give out a percentage of their shares in exchange for equity. Third, ambitious goals by the team members was something they looked for, as it would lead the team to be more successful, providing a more ambitious investment return. Fourth, investments by angels were usually long term (8-10) years perhaps, or shorter if their investment was bought out by a VC or if the team invested in managed an exit. Fifth, if an angel says no, it doesn’t mean he will not invest in later stages.

With regards to the ambassador’s presentation, other than being highly intrigued and delighted by the story of the people who developed the flip video camera after a failure, we learnt that the true reason we were here was to develop our ideas, which in essence was developing our creativity.

However, with reference to Refetch, more work on the application occurred, as well as on the business prospect. At the current moment, we have begun thinking of who the exact users of GTD are, and what kind of layout we could want for the application website. However, more on that tomorrow! Cheers!

Yesterday’s focus was on funding at Aalto Garage, with an explanation of how “the game” works when dealing with VC’s.

Notes from the day include:

Venture Capital (investing other else’s money)/Angels (own money investor) Notes

How to do an evaluation?

-          Equity (Give out shares)

-          Risk?

-          Competence

• Timing (Window of Opportunity)
• Valuation
  • 30-40% for ex. 2 million Euros
  • 40%> are vulture capitalists
  • Main Terms
    • Take Veto on all major changes in company/they run the show
    • Anti Dilution Clause
    • Liquidity Preference (7-10%)
    • Negotiate Catch-Up (you get your money after they get money invested back)
    • Team is most important for VC’s
      • Show’s business will deliver

? to ask Venture Capitalist: Have you taken part time management positions when things haven’t gone according to plan?

Rule of Thumb: 12-24 (18) months for the use of the money

During face time with Juha Ruohonen, we were given a few ideas on how we could make money from our product, and were given a list of several venture capitalists we can use. At the end of the day, I guess we could say we learnt the basics of how to deal with venture capitalists!

The day started out slow today, but work on Refetch kept going. By the end of the workday however, there was a presentation in which all groups were allowed to express several concerns about what the group would have after Aalto Garage was over. The concern we expressed was about how we would get our product known once the application was complete and ready to be used by consumers. The “trillion dollar question” was not a simple one to answer, however was answered by insisting we contact several big players in the networking industry, such as major tech magazines in the US. Ramine’s suggestion also came with an offer to help us do this. In addition, other forms of advertising our idea was by giving away free things (such as t-shirts) to promote our product, as well as trying to attract a big customer everyone knows, providing an incentive as well as security when trying out our application as the big customer (ex. IBM) uses it too.

& That was pretty much what we got done that day! Cheers!

The focus of today by team Alfa was on the legal aspect of business, figuring out the technicalities of developing our company and software. The firm Peltonen, Ruokanen & Itäinen gave an hour presentation, and then offered us a one on one consultation session in which we were allowed to address our concerns.

Two important pieces of information we learnt were that:

-          There is a distinction between Trademarks (differentiate your business), patents (technical solution), copyrights (codes, creative element)

-          Rule of thumb; establishing a company requires on average 3000 euros (2500 Euros share capital,350 to fill in law documents/registration forms of LLC)

A few of the questions that were mentioned were: which place would be best to form our business, would a patent be required, would we be infringing on any current copyrights or patents, and whether or not people with legal experience dig our idea. In the end, the discussion ended with a few important notes:

-          We have a lot to figure out on the legal perspective to secure our backs

-          It doesn’t matter where you have your company situated until the moment you start making serious money

Work happened on developing pitching skills (team member Joni), along with work on the development of the application as well. Till our next post, that’s it for today folks!

Another day of work on Refetch by team Alfa. The group focused today on further developing the application, with a possible motto for the group in discussion; “Carefree Memory”.

Insights shared by Taneli Tikka helped promote the idea that there must be as much focus on Attitude as there is on Skill and Knowledge. His speech of 11 years as an entrepreneur shed light on how one must focus on objective reality, understanding the true meaning of what customers want and what a realistic objective could be expected. In spite of the claim, he reminded us to retain the gut feeling of success, as it too is important to motivate oneself to achieve their goals.

Another point of discussion today that emerged was how the product would sell, and how it could be used to determine the demand for the application. Different ideas such as a free 30 day trial, or charging a small premium on the activation of the application could work.

Well, we’re off to work now!

Sincerely,

Team Alfa

The team made progress today on deciding upon a name for our application in development. Refetch was worked on in the technical side, as a new member joined the crew to take on a more practical role to deliver the pitches for the group in the future.

In addition to working on the actual application, speakers such as Pekka Rauhala shared their experience of entrepreneurship focus and his experience working in the executive board for different mobile operating services worldwide. Moreover, after the insightful presentation, he came and offered us certain key ideas to focus on:

-          Who the end consumer was

-          How the application would be marketed, to whom, and at what cost

As well, he offered to help provide a link between our team and other business’s involved in software development through the different acquaintances he had made during his many years of work in the mobile telecommunications industry.

To conclude, the team coaches came to see the progress the team had made, and encouraged us to focus on 3 different aspects:

1)      The development of the actual application, and its layout

2)      The pitch, and how it should be delivered

3)      To have in mind who the end consumer was, and how our application would be of need/interest for them.

This month will be most important for the establishment of the company. Our service is undergoing heavy development as we try to push for a prototype before the end of this month.