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SiliconAlley Startup Services for Startups

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SiliconAlley services for startups to accomplish milestones on both time and budget. SA provides reference customers, SMEs, capital, personnel, funding, development, business development.

SiliconAlley services for startups to accomplish milestones on both time and budget. SA provides reference customers, SMEs, capital, personnel, funding, development, business development.

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  • 1. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMS Startup Asset Management Service
  • 2. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSAbout SiliconAlley.com Since 1996, SiliconAlley.com has been dedicated to the growth and evolution of the Internet industry. It is both a community and a resource. A center of excellence where industry best practices can be explored and where vision and innovation are shared to build new Internet businesses. It is a common ground for both people providing services and those in need of them. The service we are offering to investors is the management of their startup investments. Investors who see startup investment opportunities, but for lack of experience and the minimal capital required, are unable to manage this asset for their portfolios. 2
  • 3. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSStartup Reality Check 11 out of 12 startups fail. The dominant reason for failure is the startup’s premature scaling in one or more of 5 dimensions: - customer - product - team - business model - funding Source: 2011 Startup Genome Infographics 3
  • 4. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSIntroducing … Silicon Alley Startup Asset Management Service (SA|SAMS) We manage your tech start-up ideas, investment and process from concept to market. 4
  • 5. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSOur Umbrella Services 5
  • 6. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSOur Key Deliverables ・ Education ・ Real estate ・ Legal ・ Accounting ・ HR & recruitment ・ Brand strategy ・ Marketing strategy ・ SEO/Social media plan ・ Business development ・ Public relations ・ Wireframing ・ MVP design ・ MVP build ・ MVP testing ・ Go-to-market strategy ・ Investor documents ・ Investor intro and negotiation ・ Board member selection Support Services Customer Development Product Development Business Strategy 6
  • 7. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMS Our Best Practices / What We Believe In #1: Pivot & Achieve Market Validation Early! • Release the product sooner and confirm data matches expectations. • If data does not match expectations, pivot until traction and market validation is obtained. • Scale at the appropriate points only after data validation. 7
  • 8. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMS Our Best Practices / What We Believe In #2: Don’t Waste Time; Speed-to-Market is Key • It’s not cool, it’s cool work. • Mentor employee relationship. • The episodic nature of different time zones working together. • Start building the idea right away, not sitting in classes. On- Off- Shore Shore 24-Hour Work Cycle 8
  • 9. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMS Our Best Practices / What We Believe In #3: A Lean Process = MVP Launch in 12 Weeks Week 1 2 3 4 5 6 7 8 9 10 11 12 Wire- framing MVP Design: 2-3 Rounds of Development, Testing & Pivots MVP Testing MVP Launch Brand Strategy Marketing Strategy SEO / Social Media Plan Business Dev. Public Relations Customer Development: Product Development: Project Planning 9 Business Strategy
  • 10. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMS A Typical Process for Most Startups: Lengthy, Inefficient and Expensive 10
  • 11. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSOur Way vs. The Traditional Way 11
  • 12. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSOur Tech Skill Sets Others: ・ Apache Lucene ・ Google Analytics ・ Machine Learning ・ Adriano Languages: ・ Java ・ C# ・ PHP ・ Ruby ・ JS ・ C/C++ Framework: ・ Backbone.JS ・ jQuery ・ Zend ・ ASP.NET ・ Spring Databases: ・ mySql ・ sqlLite ・ mongoDB ・ ravenDB Process: ・ Lean UX ・ Pen Testing ・ SCRUM/Kanban ・ thread modeling ・ wireframing Mobile: ・ Android ・ Windows Phone ・ PhoneGap ・ HTML5 ・ jQuery Mobile 12
  • 13. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMS Startup Selection Criteria: What We Look For in Startups Credentials and track record Low maintenance principals; ability to listen well Innovative technology not just better mousetrap Reasonable flexible valuations Products which can be built quickly at low cost 13
  • 14. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSSource of Deals/Sales Leads Lawyers and Accountants Our Network and Contacts VCs who are buried in deal flow Teachers & Prof’l Orgs. Reporters & Social Media Contacts 14
  • 15. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSLiquidity Opportunities Vendor Finance Joint Venture Cash Flow Sale Refinance 15
  • 16. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSInvestment Fee Structure Series A, Vendor Finance, Joint Venture, Sale, Cash Flow, Refinance Milestone Bonus Management Fee Success Fee Profit Share Retainer 2% carry per annum Optional based on type of services rendered to the startup Investor gets 100% return of the capital first. Then split the balance 80/20 A monthly retainer that’s less than what professional service firms charge 2%!80/20 16
  • 17. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSIllustrative Calculations Potential Return on Investment: Investment = $100k Investor’s 80% Profit Share = $720k (In this scenario, investor makes 8.2x his original investment. SA’s 20% Profit Share = $180k Investment: $ 1 mil$900k$800k$700k$600k$500k$400k$300k$200k$100k Capital: $78k Retainer: $20k Management Fee: $2k 17
  • 18. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSOur Core Team Norman S. Rosenthal ・ Over 25 years management and technical experience in technology companies ・ Positions included VP of Sales, CMO, COO, VP of BusDev and President ・ Presently CEO of Tempest Systems, a cutting edge technology-consulting/ advisory firm providing business development services to 100+ hardware and software vendors. Arthur Bierer ・18 years of experience at Microsoft as a Software Developer and Product Guy ・ Built Internet Explorer 1.0 ・ Worked as Windows developer, worked with Anders Hejlsberg on the C# language ・ Founded the NY International Technology Meetup which sponsors monthly events for technologists ・ Founded abDevLabs along with 3 companies in the past year since leaving Microsoft Miles J. Rose ・ Founded siliconalley.com in 1996 ・ Liquidity events: Consumer Search (sold to NYTimes 2006); Squashware software to Adobe ・ Advisor to Oddcast, the Humo Network ・ Guest lecturer at NYU ・ Named to Silicon Alley Top 100 ・ Received Mayor of New York’s citation for hosting WWWAC BizSig meeting during Internet World ・ Featured in articles in New York Times, Wall Street Journal and other business publications 18
  • 19. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSWhy Partner with Us • The only NYC incubator with turnkey services to ensure startup success (Go-to-market strategy, Investor documents, Investor intro and negotiation, Board member selection, Wireframing, MVP design, MVP build, MVP testing, Brand strategy, Marketing strategy, SEO/Social media plan, Business development, Public relations,, Education, Real estate, Legal, Accounting, HR & recruitment) • Proven best practices get things done faster and cheaper • Access to an extraordinary large set of tri-state area angel, VC, institutional and strategic investors • Founders have 50+ years of combined experience • siliconalley.com’s long-standing reputation as a primary influencer of investment capital to NY-based tech companies • Hybrid resource teams and offices (onshore and offshore) 19
  • 20. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSStartup Reality Check 11 out of 12 startups fail. Source: 2011 Startup Genome Infographics But businesses that go through incubators have an 87% success rate (still in business after 5 years) … Source: National Business Incubation Association … and business-heavy founding teams are 6.2x more likely to successfully scale with sales. Source: Genome Report 2012 Alternate version for Page 2
  • 21. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMS Our Best Practices / What We Believe In #3: A Lean Process = MVP Launch in 12 Weeks Week 1 2 3 4 5 6 7 8 9 10 11 12 Wire- framing MVP Design: 2-3 Rounds of Development, Testing & Pivots MVP Testing MVP Launch Brand Strategy Marketing Strategy SEO / Social Media Plan Business Dev. Public Relations Customer Development: Product Development: Project Planning Business Strategy (Go-to-market Strategy, Investor Docs, Intro, Negotiation, Board Members) Support Services (Education, Real Estate, Legal, Accounting, HR & Recruitment) Alternate version for Page 9
  • 22. DRAFT AND CONFIDENTIAL • JANUARY 26, 2013 SAMSOur Way vs. The Traditional Way Alternate version for Page 11