Lean lessons learned - lean startup methodology and lessons learned from Blossom
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1) The document discusses the lessons learned from Blossom's early attempts to create a startup that provides halal financing options for Muslim businesses and investors. 2) Blossom's initial value and growth hypotheses showed some promise but also uncovered high costs and lack of demand. 3) After pivoting to focus on microfinancing and bitcoin investments, Blossom developed new value and growth hypotheses centered on providing capital and technology to microfinance institutions for profit sharing and giving international investors halal investment opportunities.
Lean lessons learned - lean startup methodology and lessons learned from Blossom
- 1. Lean Lessons Learned Blossom’s early mistakes and successes in light of the Lean Startup methodology
- 3. Why do startups fail?
- 4. What is a startup? “A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.”
- 6. Leap of Faith Assumptions Value Hypothesis How to provide value someone will pay for Growth Hypothesis How to increase the number of people paying
- 7. Is your hypothesis valid?
- 8. Validate / invalidate hypothesis “validated learning”
- 10. Blossom: Data V0 Value Hypothesis • Have you needed financing? • How did/would you get financing / existing options? • Need/want halal source of financing in future? • Here’s our concept; would you use it?
- 12. Blossom: Ideas V1 Value Hypothesis • Provide well-established* Muslim-owned businesses with access to halal sources of financing • Provide investors with 12% average annual return on capital. Growth Hypothesis Lower the cost of customer acquisition by spreading word-of-mouth awareness through musajid and MCAs and highly-targeted online advertising.
- 13. Implicit Assumptions • American Muslims care about avoiding reba • Established Muslim businesses in US need access to financing • 12% annual return is good enough for investors on unsecured “loan” • Legal costs • Regulatory compliance • Fee structure • Cost of operating
- 14. Implicit Assumptions • American Muslims care about avoiding reba • Established Muslim businesses in US need access to financing • 12% annual return is good enough for investors on unsecured “loan” • Legal costs • Regulatory compliance • Fee structure • Cost of operating
- 16. Blossom: Product V1 Value Hypothesis • Website registration • Connect bank account • Get a quote • “Say yes” Growth Hypothesis • Direct: leave postcards at local musajid • In-person: give a talk / khalaqa at local masjid • Online: Google & Facebook paid advertising
- 18. Blossom: Data V1 Value Hypothesis • Website registration" – low traffic to website; bulk inbound via phone • Connect bank account" – low technical savvy • Get a quote" – #1 most used feature! J • “Say yes”" – slow to agree/sign Growth Hypothesis • Direct: leave postcards at local musajid" – soft interest • In-person: give a talk / khalaqa at local masjid" – lack of education/demand • Online: Google & Facebook paid advertising" – expensive
- 19. Blossom: Data V1 $150,000 USD projected legal fees
- 21. 220 Million 5 Million Market Opportunity
- 23. Blossom: Data V2 Financial literacy Financial access 80% population unbanked; financial illiteracy drives cyclical poverty; Huge demand for microfinance limited by amount of capital Rp!
- 25. Blossom: Ideas V2 Value Hypothesis • Provide capital and technology to micro finance institutions for 6-12% profit sharing • Provide international investors halal investment opportunities for social uplift at 4-10% returns Growth Hypothesis 1. Grow initial awareness through bitcoin early adopter community 2. Build buzz of press around first “transparent” BTC investment platform 3. Online ads CPA > CAC
- 26. Blossom: Ideas V2 Value Hypothesis • Provide capital and technology to micro finance institutions for 6-12% profit sharing • Provide international investors halal investment opportunities for social uplift at 4-10% returns Growth Hypothesis 1. Grow initial awareness through bitcoin early adopter community 2. Build buzz of press around first “transparent” BTC investment platform 3. Online ads CPA > CAC
- 28. Blossom: Product V2 Value Hypothesis • Make pilot investment into Indonesian microfinance institution (“MFI”) • Build MVP to move money into / profit from MFI using bitcoin public ledger Growth Hypothesis • Solicit investment from bitcoin early adopters via our existing network
- 31. Contact: matthew@blossomfinance.com Profitable Social Uplift Transparent. Efficient. Impactful.