Five Questions You Must Answer Today Richard Rosenblatt Startonomics La 2009Presentation Transcript
Five Questions You Must Answer Today Richard Rosenblatt CEO and Founder Demand Media
Q1.) Why Are You Doing This ?
A. Because I am in love with this idea What does this kind of passion look like ?
I’m passionate about lots of things…
Elements I focus on:
Consumer products that are made possible by the Internet
Models that leverage and exploit the network effect
Media models that can be reinvented
Opportunity to work with amazingly smart people
Ability to make money for my investors, teams, and friends
None of these are why I like to start companies
My passion is Self-Publishing 1994 2003 2007
Q2.) Do you have the best crew?
Your Crew is Bigger than You Think Founders Executive Staff Board of Directors Service Providers Investors Functional Staff Advisory Board Don’t settle on any of these groups; pick the best
Q3.) Who Will You Take Money From ?
It Really Pays To Think This Through Savings Account Friends & Family Angels Strategic Partner Early Stage VC Later Stage VC Private Equity Venture Debt Distinguishing Characteristics Compatibility Sector experience Temperament Explicit Value Fund position
Q4.) What is Plan B for Your Company?
Things Rarely Go According to Plan Many start-ups have to run a broken play
Program in “Optionality”
Know “what else” this could become
Always be testing alternative things
Business models; segments; product offerings
Let passionate staffers pursue their pet ideas
Good place to use partners
Killing these off is OK too…
Q5.) What Outcome Do You Want ?
A.) The right one
King of my hill.
HillClimb Media ($10mm)
Get what the market gives you. Panos Pluck ($70mm) $17m VC raise Go big or go home. Rosenblatt Demand Media (Outcome TBD) $355m PE raise