The EIA2019Portugal deck is not a traditional startup pitch but a pedagogical tool designed by Patrick Lor, Managing Partner at Panache Ventures, for the European Innovation Academy. It outlines the rigorous criteria venture capitalists use to assess 'Problem-Solution Fit.' The deck emphasizes that timing is the single most important factor for startup success, accounting for 42% of the variance according to cited Idealab data. It introduces the 'LUV' framework (Large, Urgent, Valuable) for problem selection and provides actionable B2B discovery questions. While it lacks specific company metr…
Key takeaways
- VC firms typically target companies with enterprise values between $3,000,000 and $200,000,000 (Slide 3).
- Timing is identified as the most critical success factor at 42%, outweighing team (32%) and the idea itself (28%) (Slide 7).
- The 'LUV' framework defines a venture-scale business as one solving a problem that is Large, Urgent, and Valuable (Slide 5).
- Global smartphone shipments were noted as declining by -4% to 0% year-over-year in 2019, signaling market saturation in the West (Slide 8).
- Asia Pacific led global internet usage in 2018 with 53% of total users but only 48% penetration, indicating high remaining potential (Slide 9).
- B2B problem discovery should focus on 'painkillers' by asking what gets a customer fired, promoted, or keeps them up at night (Slide 14).
- A relevant solution must be 10x cheaper or better and account for high customer switching costs (Slide 15).
- Unique Value Propositions (UVP) require both primary research (expert calls) and secondary research via databases like Pitchbook or Crunchbase (Slide 18).
Introduction: The VC Lens on Problem-Solution Fit
The EIA2019Portugal presentation is a structured guide by Patrick Lor, Managing Partner at Panache Ventures. Unlike a standard startup pitch deck, this is a pedagogical tool intended to align founder efforts with investor expectations. It focuses heavily on the earliest stage of the startup lifecycle: identifying a problem worth solving and ensuring the proposed solution fits the market need.
Slides 1-2: The Source and Authority
Slide 1 establishes the context: The European Innovation Academy in Portugal, 2019. The presenter, Patrick Lor, represents Panache Ventures. Slide 2 provides the 'Resume' or credibility slide. Lor highlights his background with iStockphoto, Adobe, 500 Startups, and Panache Ventures . His educational background in Sociology and an MBA suggests a blend of human-centric problem solving and business rigor.
Slide 3: The Economic Context of Venture Capital
Slide 3 is one of the most important for founders to understand. It maps company valuations to funding stages. It explicitly states that VC firms typically fund companies that have between $3,000,000 to $200,000,000 in enterprise value . It notes that Friends & Family rounds usually happen under a $2M valuation, and Angels under $10M. This slide sets the 'size of the prize' required for a startup to be relevant to a firm like Panache.
Slides 4-5: The Dealflow Framework and 'LUV'
Slide 4 lists the four basic questions VCs ask: 1. What is it? 2. How big can it be? 3. Is there founder magic? 4. What are the deal terms? Slide 5 introduces the 'LUV' framework (attributed to Hunter Walk of Homebrew). It uses a Venn diagram of Large, Urgent, and Valuable . The slide notes that hitting 3/3 of these circles is necessary for a 'huge, venture-scale business,' while hitting only 1/3 results in 'no business.'
Slides 6-7: The Hierarchy of Success Factors
Citing Bill Gross of Idealab (who started over 125 companies), Slide 7 breaks down the top five factors in success across more than 200 companies. The findings are counter-intuitive for many founders: Timing (42%) is the most important, followed by Team/Execution (32%) , Idea (28%) , Business Model (24%) , and finally Funding (14%) . The slide uses the example of Idealab launching a video content business before broadband was ready, whereas YouTube launched just as that problem was being solved.
Slides 8-10: Macro Trends and Market Saturation
These slides utilize data from the 2019 Mary Meeker Internet Trends report. Slide 8 shows that Global New Smartphone Unit Shipments were declining -4% vs. 0% Y/Y in 2018. Slide 9 highlights that while the Asia Pacific region has 53% of global internet users, it only has 48% penetration, compared to 89% in North America. Slide 10 concludes that the USA is 'nearing full saturation,' while China, India, Africa, and S.E. Asia remain 'underserved.'
Slide 11: The Micro-Mobility Case Study
To illustrate a 'massive trend,' Slide 11 looks at electric scooters. It mentions the Ninebot MAX Indiegogo campaign, which raised $3,641,881 USD (3630% of its goal). It notes that electric scooters became popular Christmas gifts and that the market was shifting from car ownership to scooter access.
Slides 12-15: Problem Discovery and Solution Validation
Slide 12 introduces the classic 'Vitamin vs. Painkiller' analogy. Slide 13 asks if the problem is 'obvious,' comparing 1.4B people without electricity to 'another food app.' Slide 14 provides three critical B2B discovery questions: 'What would get you fired?', 'What would get you promoted?', and 'What keeps you up at night?' Slide 15 defines a relevant solution as one that is 10x cheaper or better and accounts for switching costs.
Slides 16-18: Research and Unique Value Proposition (UVP)
Slides 16 and 17 show screenshots of the U.S. Census Bureau library, emphasizing the need for data-backed problem validation. Slide 18 defines a UVP as a clear statement of benefit, need fulfillment, and competitive distinction. It recommends Primary Research (expert calls) and Secondary Research (Pitchbook, Crunchbase, University libraries) .
Slide 19: The Team Philosophy
The final slide in the provided set features a maple leaf and the proverb: 'If you want to go fast, go alone. If you want to go far, go together.' This reinforces the earlier data point that Team/Execution is the second most important factor in startup success.
What Works in This Deck
Framework-Driven Logic: The deck avoids vague advice in favor of specific frameworks like 'LUV' and the 10x rule. This gives founders a rubric to grade their own ideas before they ever talk to an investor.
Data-Backed Claims: By citing Bill Gross and Mary Meeker, the deck grounds its advice in historical performance and macro-economic reality. It forces founders to look at the 'Why Now?' (Timing) which is often the weakest part of a pitch.
Investor Transparency: Slide 3 is exceptionally useful. Most founders guess at what valuation ranges VCs look for; this deck puts the numbers ($3M to $200M enterprise value) in plain text.
What Is Missing
Specific Unit Economics: As this is a general framework deck, it does not cover how to calculate LTV, CAC, or churn, which are critical components of the 'Business Model' (the 24% success factor).
The 'Founder Magic' Definition: While Slide 4 mentions 'founder magic' as one of the four basic questions, the deck doesn't elaborate on what that looks like in practice beyond the final proverb about teamwork.
Competitive Landscape Mapping: The deck mentions UVP and research but doesn't provide a template for a competitive matrix or a 'Petal Diagram,' which are standard in actual pitch decks.
Founder Takeaways
Solve for Timing First: If your market isn't ready or is already saturated (like the 2019 smartphone market), even a great team and funding won't save you. You must be able to answer 'Why now?' with data.
The 10x Rule is Non-Negotiable: Incremental improvements are for incumbents. Startups must be 10x better or cheaper to overcome the 'switching costs' mentioned on Slide 15.
Use the B2B 'Firing' Question: When doing customer discovery, don't ask if they like your idea. Ask what would get them fired. If your solution doesn't prevent a 'firing' event or cause a 'promotion' event, it is a vitamin, not a painkiller.
Frequently asked questions
- What is the primary purpose of this deck?
- This is an educational deck presented at the European Innovation Academy in Portugal in 2019. It is designed to teach aspiring entrepreneurs how to achieve 'Problem-Solution Fit' from the perspective of a venture capitalist. It provides frameworks for market analysis, problem validation, and competitive positioning rather than pitching a specific product.
- How does the deck define a 'venture-scale' problem?
- The deck uses the 'LUV' framework: Large, Urgent, and Valuable. According to Slide 5, solving only one of these leads to 'no business,' two leads to a small or medium business, and hitting all three is required for a 'huge, venture-scale business.' This is attributed to Hunter Walk of Homebrew.
- What does the deck say about the importance of funding?
- Surprisingly, the deck ranks funding as the least important factor for business success among the top five. Citing a study of 200 companies by Bill Gross of Idealab, funding only accounts for 14% of success, whereas timing accounts for 42% and team/execution for 32% (Slide 7).
- What specific B2B advice is offered to founders?
- For B2B startups, the deck suggests moving beyond 'nice to have' vitamins to 'need to have' painkillers. Founders are encouraged to ask potential customers three specific questions: 'What would get you fired?', 'What would get you promoted?', and 'What keeps you up at night?' (Slide 14).
- What market trends were highlighted as 'massive' in 2019?
- The deck highlights two main trends: the saturation of internet usage in the USA vs. underserved markets in China, India, and Africa (Slide 10), and the explosion of micro-mobility, specifically electric scooters, which were seeing massive choices and access methods at the time (Slide 11).
