uTest Dogpatch labs
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The document discusses the journey of a startup called uTest from its founding to becoming a successful company. It describes how the CEO realized crowdsourced testing could test software in real-world conditions (paragraph 6). Some important early decisions included focusing on functional over usability testing initially and betting on the unproven idea of crowdsourcing (paragraphs 8-9). The CEO discusses lessons learned around staying lean, expecting the unexpected, fundraising and preparing the company for scaling (paragraphs 13-27).
uTest Dogpatch labs
- 1. Taking Your Startup to the Next LevelOne CEO’s Story – April 1st, 2011Doron Reuveni | CEO & Co-Founder | doronr@utest.com
- 2. Who We Are37,000+ professional testers from 174 countriesThousands oftest cyclesRaised $20.5MM from top VCsHundreds of elite recurring customersPublic-facing web, desktop & mobile appsEnterprises, startups, universities & NPOs1
- 4. What We DoA suite of in-the-wild testing services for startups and big brandsReal-world testing of browser, device, OS and security tool compatibility
- 5. Scalable, on-demand access to professional testers with the geographies and real-world infrastructure used by your consumersFnFocus groups selected based on demographic, socioeconomic, technical and geographic criteria
- 6. On-demand usability experts to develop and manage usability testing UxLdProvide live load, synthetic load and a combination of the two, utilizing uTest’s community of testers and performance engineers
- 7. Partner with leading synthetic load tools companies (notably SOASTA)ScUtilizing white hat security experts from the uTest community to provide automated and manual dynamic penetration testing
- 8. Probing for most common security & privacy vulnerabilitiesLcReal-world localization validation using native speakers for languages such as Spanish, Italian, French, German, Japanese and Mandarin
- 9. Enables flexible and scalable addition of localization support on demand3
- 10. << BUT LET’S REWIND
- 11. How Did We Get Here?Knew testing space wellUnderstood the painHad experienced the pain, cost and frustration of testing software via traditional meansI was doing everything rightIn-house testingOutsourced partnersTest automationDocumentationYet, unexpected defects still emerged when we launched our apps and put them in users’ hands 5
- 12. The “Aha” MomentPremise: What if we moved testing into the wild so it would be closer to the end users of an app? Conclusion: Best way to achieve was via crowdsourcingThis would (theoretically) enable firms to launch apps:Tested “in-the-wild”Vetted by real usersReady for primetime6
- 13. EARLY DECISIONS ARE KEY
- 14. Market To Go After First1st Key Decision: Functional or Usability Testing? Trying to do both at once was too big8
- 15. 2nd Key Decision: Whether to bet on something as unproven as crowdsourcing9
- 16. 3rd Key Decision: How to turn a crowd…10
- 17. Into a predictable, orderly community?11
- 19. 1. Focus Is CriticalWhen things are going well, opportunities aboundStay on the critical pathWe say ‘no’ more than we say ‘yes’We started with functional test and focused on our communityWe knew functional betterMore pain-driven than usabilityLarger market opportunityPromise-keeping (community) is vital13
- 20. 2. Just Do ItWhile you’re off refining your business plan, someone else may be launching your ideaFinalize your business plan in parallel to:Actual prototypingEngaging with prospectsInterviewing stakeholdersGetting market feedback14
- 21. 3. Stay LeanInitially, we even outsourced software development to maximize speed & minimize cost15
- 22. 4. Expect The UnexpectedBusiness model maywill evolveBe ready to iterate on all frontsuTest created a new category, so we had no one to follow – high risk & high rewardListen to your customersGet feedback from the marketThey will tell you:How they want to interactWhat features they wantWhat’s “good enough”16
- 23. 5. Make Some Noise17AwardsMedia Coverage
- 24. FUND-RAISING: LESSONS LEARNED
- 25. Start SmallConsider angels – raise the money absolutely needed to safely get you to your next phaseTake a bigger round (if necessary) when you’re getting market tractionGet revenue in the door ASAP19
- 26. Raising VC FundsMy Lesson: I went to VCs too soonVCs Can Help With: Refine your idea, business model, go-to market strategyGive you perspective (they see lots of business plans)Honestly set expectations (theirs and yours)VC Do Not Help With:Jump into completely new business models with no proof points or tail lights to followMaking the ultimate decisions – it’s your baby20
- 27. When Choosing VCsAfter making good progress with your seed money, good VCs complement angels will help youMake connections with prospectsGrow management teamBuild the brandDo your researchGo with your gut21
- 28. Negotiating With VCsCreate competition – to get the best terms, never rely or focus on only one VCTerms matter – its not just about the money but the terms that come with the dealEvery round is an opportunity to improve termsYou’re dealing with people at the end of the day:You need to feel comfortable with terms andthe peopleThey need to believe in your core ideaThey need to believe in you22
- 29. ABCs of Funding Rounds (for uTest)Seed & A roundProve the concept (technology, basic model)Find & serve customersIdentify competencies which will differentiate youB roundBring core competencies in house: dev, sales, marketingUnderstand key metrics (LTV, CAC, ROI)Build out management teamC roundScale operationsIncrease spendDrive customers & revenue23
- 30. ARE YOU READY TO SCALE?
- 31. Predictability & VisibilityFrom single solution to a suite of testing servicesModel has become highly predictableCrack the code on marketing, sales, retention, etcUnderstand the KPI of your businessCan you put $100 in and take $200 out?Customer retention continues to riseCustomer LTV continues to riseGreater predictability greater willingness to investSince C round, investing aggressively in growing mindshare and marketshare25
- 32. And Now Crowdsourcing Is Accepted26
- 33. SummaryEntrepreneurship is a journey Every biz has peaks and valleysDon’t get hung up on mistakes or failures – learn from themTap your networkFind CEOs and advisors who’ve been thereNo one knows everything – but you can find people to helpKnow thyselfPlay in spaces you knowUnderstand your individual strengths & weaknessesSurround yourself with smart, passionate peopleHave some funIt’s an adventure… If you can’t enjoy that, it might not be for youSeek out kindred spirits as your co-founders and early hires27
- 34. QUESTIONS?Doron Reuveni | CEO & Co-Founder | uTest, Incw: www.utest.com e: doronr@utest.comp: 1.800.445.3914
Editor's Notes
- #2: 20 seconds: We talked briefly about uTest, our community of testers, the types of apps we test, and glanced at our customer base
- #3: 30 seconds: We briefly introduced the types of companies we help test their web and mobile apps…From our early days working with startupsTo our more recent expansion into larger brandsTo our growth in serving retailers and e-tailersTo major media brandsTo international firms
- #4: 45 seconds: We briefly covered the types of testing services we offer through our community
- #6: First talk about your background in software development, managing large deliveries to big enterprise customers (banks to airlines). You faced these issues yourself.
- #10: 10 seconds
- #11: 10 seconds
- #12: 10 seconds
- #16: Quick story about how/why you chose outsourcing first; your experience
- #17: Started with a pay-per-bug model; Didn’t work well for customers or testers; Fixated on bugs instead of holistic value; Elevating the message was challenging; Packs, subscriptions, etc.
- #18: 30 secondsAs a start-up, it’s critical that we spread the word about uTest and crowdsourced testing.Fortunately for us, our story has been well-received by opinion-leaders from TechCrunch, Wired, Forbes and USA Today.We’ve also received awards in the past year from Gartner, InformationWeek, Mashable and AlwaysOn
- #20: Tell the story of how you originally wanted to raise 750K but it became a 2.2MM round
- #21: Anecdote – tell the story of how the first VCs all turned you down at the beginning for different reasons (can build community, but customers won’t come; can get customers, but can’t build community, etc.)
- #22: Late 2008, NASDAQ crashed - Fortunate to be in late stages with 3 VC firms
- #23: Always involve a lawyer when negotiating; There are firms that are entrepreneur friendly and some that are not
- #26: We now know that if we increase our marketing & sales spend by X, then we can achieve Y revenue growth
- #27: 15 seconds: We introduced the idea of crowdsourcing and how it’s disrupting a number of different industries