The five most common   startup mistakes         Colin Kinner   Innovation Centre Sunshine Coast             13 June 2012
1. Single founder• Strongest correlation with startup failure  – Too much work for one person  – No alternative views -> m...
Diversity is vital       Common                              Ideal                            Tech                        ...
Finding a co-founder• You probably already know the ideal person• Networking events• Cofounder speed dating events  eg. ww...
Co-founder dynamics• 50/50 (or 33/33/33) intuitively seems fair• BUT:  – More than half of all startup founding teams end ...
2. Business plan mania
Perspectives on business plans• “Most business plans don’t survive first contact with  a customer”  . . . Steve Blank• “I ...
Lean Startup approach•   Rapid prototyping•   MVP•   Talk to customers!•   Iteration•   Learn and feedback•   Pivot if nee...
Business Model Canvas   www.businessmodelgeneration.com
3. Can’t communicate value                     proposition•   I’m [name] from [Company]•   The problem we’re solving is. ....
Elements of an investor pitch•   30 second pitch•   5 minute pitch (6 slides)•   20 minute pitch (12 slides + extras)•   1...
4. Aiming too low, growing too slowly• “If I invested ten times what you’re asking,  could you grow the company ten times ...
5. Inability to pivot• Deal with poor-fit or underperforming people• Listen to customer feedback – even if you  don’t like...
Funding trends
Funding trends• Crowdfunding    – US: Kickstarter (US$230 million; 23,000 projects)    – Australia: Project Powerup, iPled...
116           8827     62
Thank youColin Kinneremail colin@spikeinnovation.com.auPh 0411 122 976www.spikeinnovation.com.au  @colinkinner  http://au....
Upcoming SlideShare
Loading in …5
×

Colin Kinner presentation - Innovation Centre Sunshine Coast - 13 June 2012

1,616
-1

Published on

Colin Kinner's presentation - Innovation Centre Sunshine Coast - 13 June 2012 - "The Five Most Common Startup Mistakes"

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,616
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Colin Kinner presentation - Innovation Centre Sunshine Coast - 13 June 2012

  1. 1. The five most common startup mistakes Colin Kinner Innovation Centre Sunshine Coast 13 June 2012
  2. 2. 1. Single founder• Strongest correlation with startup failure – Too much work for one person – No alternative views -> myopia – Hard to stay motivated – Limited skill set• Two founders ideal: 1 x technical, 1 x business• Three or more: Risk of committee-style decision making
  3. 3. Diversity is vital Common Ideal Tech BusinessTech Tech Other (eg. sales / marketing)
  4. 4. Finding a co-founder• You probably already know the ideal person• Networking events• Cofounder speed dating events eg. www.cofounderspeeddate.com.au• Co-founder matching services eg. www.founder2be.com
  5. 5. Co-founder dynamics• 50/50 (or 33/33/33) intuitively seems fair• BUT: – More than half of all startup founding teams end up dysfunctional – Impossible to predict value contribution at outset – Risk appetites vary – Life circumstances change• Alternative approach: “Hire” your co-founder(s) – 10%-30% equity plus modest salary – Involve fully in running business – Retain right to terminate
  6. 6. 2. Business plan mania
  7. 7. Perspectives on business plans• “Most business plans don’t survive first contact with a customer” . . . Steve Blank• “I want to know that the founder has written a business plan. . . but I don’t intend to read it” . . . Silicon Valley VC
  8. 8. Lean Startup approach• Rapid prototyping• MVP• Talk to customers!• Iteration• Learn and feedback• Pivot if needed
  9. 9. Business Model Canvas www.businessmodelgeneration.com
  10. 10. 3. Can’t communicate value proposition• I’m [name] from [Company]• The problem we’re solving is. . .• Our solution is. . .• This is a big opportunity because. . .• Our target market is. . .• We will acquire customers by. . .• We make money by. . .• Our main competition is. . .• We’re better because. . .• Our team is. . .• What we’ll do next is. . .• Currently we are seeking. . .• Summaryhttp://pollenizer.com/universal-startup-pitch-deck/
  11. 11. Elements of an investor pitch• 30 second pitch• 5 minute pitch (6 slides)• 20 minute pitch (12 slides + extras)• 1-page executive summary• 1-page cashflow forecast (incl. use of funds)
  12. 12. 4. Aiming too low, growing too slowly• “If I invested ten times what you’re asking, could you grow the company ten times faster?” – Competition is global – Most parts of the world an apply risk capital faster and in larger amounts than in Australia • US has 16 times more VC per capita than Australia
  13. 13. 5. Inability to pivot• Deal with poor-fit or underperforming people• Listen to customer feedback – even if you don’t like what you hear• Listen to investor feedback – but apply a filter• YouTube – started as a video dating site• Flickr – started as a multiplayer game
  14. 14. Funding trends
  15. 15. Funding trends• Crowdfunding – US: Kickstarter (US$230 million; 23,000 projects) – Australia: Project Powerup, iPledg, Pozible• Seed accelerators• Angels• Super-angel funds• Venture capital• ASSOB?• Government funding (CA, R&D tax)
  16. 16. 116 8827 62
  17. 17. Thank youColin Kinneremail colin@spikeinnovation.com.auPh 0411 122 976www.spikeinnovation.com.au @colinkinner http://au.linkedin.com/in/colinkinner
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×