The Art of Start in Jordan    IEEE workshop 7 Oct 2012Ahmad Takatkah & Muhammad Arrabi
Who Is This?
Who Is This?
Who Is This?
What’s common between these companies?
Why Are You Here?
Lifecycle of a Startup              Idea                      • Evenings,                                          friends...
Contents•   Introduction•   Idea•   Business Plan•   Execution•   Investment•   Team•   Resources
THE IDEA
The Market – it’s all about the market• Is the market growing?• Do you understand the market? Experience in it?
Technical vs. Business• You must address customer pains – paying  customers preferably
Question for the Audience• Let’s assume you work as a Kitchen Designer.• A Lady comes to you, and asks you to design her  ...
Who is your target customer?•   B2C•   B2B•   B2E (enterprise)•   Global vs. Regional vs. Local
5 Forces of Competition                   Customers                 (Bargain Power)   Substitute       Market         Barr...
Blue vs. Red Ocean
Blue vs. Red Ocean (examples: iPad, AirBnB, 99Designs, etc…)
Too Many Ideas Problem
Contents•   Introduction•   Idea•   Business Plan•   Execution•   Investment•   Team•   Resources
BUSINESS PLAN
Business Model Canvas• http://www.businessmodelgeneration.com/downloa  ds/business_model_canvas_poster.pdf
Let’s Take an Idea and Work with It!
Partners & Operations                 Customers                             1                           Value       3     ...
1- Value Proposition• What value do you provide to  customers?• Which of their problems are  you solving?• What need are y...
2- Customers• Customer Segments  – For whom are you creating value  – Who are your most important customers?• Customer Rel...
3- Partners & Operations• Key Partners• Key Activities   – Hire people, pay salaries   – Offer services, cost on you• Key ...
Is it a profitable business?   Partners & Operations                 Customers                                1           ...
Contents•   Introduction•   Idea•   Business Plan•   Execution•   Investment•   Team•   Resources
Contents•   Introduction•   Idea•   Business Plan•   Execution•   Investment•   Team•   Resources
EXECUTION
Fail Fast & Fail Often• Any idea or product can fail for  many reasons• Many of these reasons you can test  early on• The ...
Validate Customers Need• Test & verify that customers really have this need –  want to do this
Validate Initial Solution• Try the item with customers. Get feedback. Enhance.  Iterate very quickly. Verify that are well...
Validate Ability to Scale• This is usually late stage for  startup• Once you need to scale up,  certain practices & operat...
Now you are a big company• (and this is a different presentation)• Recommended reading about big companies:
INVESTMENT
Funding vs. Investment
Investment Stages – like Car Gears
Lifecycle of a Startup              Idea                      • Evenings, frie                                          nd...
There are many Sources of Capital•   Self Finance•   Friends and family•   Crowdfunding•   Bootstrapping,•   Competitions,...
Crowdfunding – Kickstarter.com
Angel Investors• Angels?       • they understand your situation,       • theyre a source of contacts and         advice.• ...
Venture Capital• Professional firms, they look for investments• They invest in around 20 companies every round (3-7) years...
Contents•   Introduction•   Idea•   Business Plan•   Execution•   Investment•   Team•   Resources
TEAM
Team• Choose the super team   – This is the team that will take     your revolutionary idea to the     world.• Equity over...
Contents•   Introduction•   Idea•   Business Plan•   Execution•   Investment•   Team•   Resources
RESOURCES
Common Internet Business Models•   advertising•   ecommerce•   lead generation•   sponsorships•   freemium•   in-app purch...
Types of Startups•   Copier•   Exploiter•   Niche leader•   Franchiser / Distributor•   Business Innovator•   Technology I...
VC’s in region•   N2V•   IV Holdings•   Dash Ventures•   Humming Bird Ventures•   Ideavelopers•   MENA Ventures•   MEVP•  ...
Incubators in region•   Oasis500 (www.Oasis500.com)•   iPark (www.ipark.jo)•   Business Innovation Center (www.bic.jo)•   ...
Startup Support Programs in Jordan•   BDC Course: http://www.empretecjordan.org/•   Microsoft BizSpark – free software (wo...
Books & Education•   Lean Startup by Eric Ries•   Startup Owner’s Manual by Steve Blank•   Business Model Generation by mu...
Thanks for inviting us   Ahmad Takatkah                   Muhammad ArrabiManaging Partner, Sinbad Ventures     Chief of St...
Thank You
The Art of Start in Jordan
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The Art of Start in Jordan

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Ahmad Takatkah (@SinbadTheVC) and myself (@MRArrabi) gave this workshop at the IEEE event in Hashemite University on Oct 7, 2012. It covers tips & advice on how to launch your startup in Jordan.

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  • Takatkah to fill
  • Takatkah to fill
  • Takatkah to fill
  • Arrabi to fill
  • Arrabi to fill
  • Arrabi to fill
  • Arrabi to fill
  • Arrabi to fill
  • Takatkah to fill
  • Takatkah to fill
  • Too Many Ideas Syndrome Consider:Time Passion (the Red Apple)FocusQualityInstead: Pivot
  • Takatkah to fill this section and present it – your slides here.Preferably if you can just fill the existing slides here (place holders) without creating more.Goal is to fill One Business Model Canvas one section at a time (idea from audience).
  • This section to be filled by Arrabi, and presented mostly by arrabi
  • http://dl.dropbox.com/u/27532820/original_screencast.html
  • http://www.youtube.com/watch?v=YTy1H60NJL4
  • Takatkah – your section. Please review.I’m not happy with current order of slides. Feel free to add/remove slides. Keep them overview level.
  • You have to understand how the investor thinksYou think it’s fundingBut for the VC, it\\s investment. He wants return.
  • Funding should not be a life cycle, it is needed:There, Then, and for a specific purpose.Some companies grow organically, some may not.Funding is not a preference, it is a business need.Legitimate need: Supporting businessAccelerating growthIllegitimate need:Salvage (Rescue)Unplanned growthFunding is not free, it comes at a price and with obligations and liabilities.
  • Arrabi can present this section.It’s done – just few points to mention.
  • Takatkah – feel free to add slides that you think are useful resources.
  • Takatkah – feel free to move this somewhere else.
  • Takatkah – please add to this slide
  • Takatkah – please add to this slide
  • Arrabi to fill this one
  • Takatkah – please add what you have.Arrabi will add few points later
  • 10 intro30 idea/canvas lean startup – validation)20 investment (& partners)20 trends (local & global)
  • The Art of Start in Jordan

    1. 1. The Art of Start in Jordan IEEE workshop 7 Oct 2012Ahmad Takatkah & Muhammad Arrabi
    2. 2. Who Is This?
    3. 3. Who Is This?
    4. 4. Who Is This?
    5. 5. What’s common between these companies?
    6. 6. Why Are You Here?
    7. 7. Lifecycle of a Startup Idea • Evenings, friends Business Plan • Evenings • Find mentor Customer • Self funded Validation • Evening work Solution • Seed funding Validation • Total focus Scale • VC funding • A small company Big Comp • IPO/Acquisition any
    8. 8. Contents• Introduction• Idea• Business Plan• Execution• Investment• Team• Resources
    9. 9. THE IDEA
    10. 10. The Market – it’s all about the market• Is the market growing?• Do you understand the market? Experience in it?
    11. 11. Technical vs. Business• You must address customer pains – paying customers preferably
    12. 12. Question for the Audience• Let’s assume you work as a Kitchen Designer.• A Lady comes to you, and asks you to design her kitchen.• What would be your first question to her?
    13. 13. Who is your target customer?• B2C• B2B• B2E (enterprise)• Global vs. Regional vs. Local
    14. 14. 5 Forces of Competition Customers (Bargain Power) Substitute Market Barrier to Entry Products Competitors Suppliers (Bargain Power)
    15. 15. Blue vs. Red Ocean
    16. 16. Blue vs. Red Ocean (examples: iPad, AirBnB, 99Designs, etc…)
    17. 17. Too Many Ideas Problem
    18. 18. Contents• Introduction• Idea• Business Plan• Execution• Investment• Team• Resources
    19. 19. BUSINESS PLAN
    20. 20. Business Model Canvas• http://www.businessmodelgeneration.com/downloa ds/business_model_canvas_poster.pdf
    21. 21. Let’s Take an Idea and Work with It!
    22. 22. Partners & Operations Customers 1 Value 3 2 Proposition Costs < Revenue
    23. 23. 1- Value Proposition• What value do you provide to customers?• Which of their problems are you solving?• What need are you satisfying?• What services/products are you offering to what target group?
    24. 24. 2- Customers• Customer Segments – For whom are you creating value – Who are your most important customers?• Customer Relationships• Channels• Revenue Streams
    25. 25. 3- Partners & Operations• Key Partners• Key Activities – Hire people, pay salaries – Offer services, cost on you• Key Resources• Cost Structure – How cost grows as activities grow
    26. 26. Is it a profitable business? Partners & Operations Customers 1 Value 3 2 Proposition Costs < Revenue
    27. 27. Contents• Introduction• Idea• Business Plan• Execution• Investment• Team• Resources
    28. 28. Contents• Introduction• Idea• Business Plan• Execution• Investment• Team• Resources
    29. 29. EXECUTION
    30. 30. Fail Fast & Fail Often• Any idea or product can fail for many reasons• Many of these reasons you can test early on• The main goal of a startup in the beginning is to perform these tests• If a test fails this means you have to change the idea a bit (enhancing) or a lot (pivoting).• Testing your idea reduces risk, and thus allows you to get more funding.
    31. 31. Validate Customers Need• Test & verify that customers really have this need – want to do this
    32. 32. Validate Initial Solution• Try the item with customers. Get feedback. Enhance. Iterate very quickly. Verify that are welling to pay for it (if it will not be free).
    33. 33. Validate Ability to Scale• This is usually late stage for startup• Once you need to scale up, certain practices & operations will have to be replaced• But will these work as good as previously? Verify this. As you verify more, you can expect to reduce risk, and grow business.
    34. 34. Now you are a big company• (and this is a different presentation)• Recommended reading about big companies:
    35. 35. INVESTMENT
    36. 36. Funding vs. Investment
    37. 37. Investment Stages – like Car Gears
    38. 38. Lifecycle of a Startup Idea • Evenings, frie nds Business Plan • Evenings • Find mentor Customer • Self funded Validation • Evening work Solution • Seed funding Validation • Total focus Scale • VC funding • A small company Big Comp • IPO/Acquisition any
    39. 39. There are many Sources of Capital• Self Finance• Friends and family• Crowdfunding• Bootstrapping,• Competitions,• Incubators,• Grants, and Supporting Organizations• Strategic Partners• Customers and suppliers• Banks, Islamic Banks• Angels Investors• Venture Capital Funds,• Corporate Venture Funds and corporate incubators (Spinoffs)• Private Equity Funds• IPO
    40. 40. Crowdfunding – Kickstarter.com
    41. 41. Angel Investors• Angels? • they understand your situation, • theyre a source of contacts and advice.• New concepts • Exit Strategy • Valuation• Angel Groups/clubs.• How to find angels? – Personal introductions• Deal terms• Dont believe it till you get the check (never stop looking for angels)
    42. 42. Venture Capital• Professional firms, they look for investments• They invest in around 20 companies every round (3-7) years• An investment should promise around 10x return• Usually only 1 or 2 companies succeed really big (100x), and 5-6 die, and the others break even of bring some money.• Expect a long process, detailed, with lots of information requests.
    43. 43. Contents• Introduction• Idea• Business Plan• Execution• Investment• Team• Resources
    44. 44. TEAM
    45. 45. Team• Choose the super team – This is the team that will take your revolutionary idea to the world.• Equity over time – Let’s say you are 2 people – Give each 50% of company, vesting over 4 years! – This means, after first year, each partner gets ¼ of their stock (e.g. %12.5). After second, another ¼ vests. – If a partner leaves early, he loses any unvested stock.• Pay with Equity to Lawyers, Accountants, etc. – Starting to happen in Jordan
    46. 46. Contents• Introduction• Idea• Business Plan• Execution• Investment• Team• Resources
    47. 47. RESOURCES
    48. 48. Common Internet Business Models• advertising• ecommerce• lead generation• sponsorships• freemium• in-app purchase• B2B Products, Service, & Subscription
    49. 49. Types of Startups• Copier• Exploiter• Niche leader• Franchiser / Distributor• Business Innovator• Technology Innovator• (lifestyle business vs. high-growth business)
    50. 50. VC’s in region• N2V• IV Holdings• Dash Ventures• Humming Bird Ventures• Ideavelopers• MENA Ventures• MEVP• Wamda (Abraaj Capital)• Sinbad Ventures• STC Ventures• MBC Ventures
    51. 51. Incubators in region• Oasis500 (www.Oasis500.com)• iPark (www.ipark.jo)• Business Innovation Center (www.bic.jo)• Several universities have them (JUST, Yarmouk, etc.)• Outside Jordan – Flat 6 Labs (Cairo) – Bader (Riyadh) – Tahrir2 (Alexandria) – SeedStartup (Dubai) – Seequnce (Beirut) – Tenmou (Bahrain) – 360 Accelerator (Dubai)
    52. 52. Startup Support Programs in Jordan• BDC Course: http://www.empretecjordan.org/• Microsoft BizSpark – free software (work $200k)• AmmanTT.com – free lectures & networking• Bedaya.jo – Jordanian Angel Network• Development for Employment Fund def.gov.jo• www.EndeavorJordan.org mentorship• www.Injaz.org.jo training• www.InjazAlarab.org training• irada.org.jo Support for startups• www.Jedco.gov.jo EU Support and funding• www.kafd.jo King Abdullah II Fund• www.MigrateMENA.com consulting services• www.MITarabcompetition.com Business Plan Competition• www.qrce.org Queen Rania Center for Entrepreneurship• www.yea.com.jo Young Entrepreneurs Association• www.intaj.net INT@J Association of Computer Companies
    53. 53. Books & Education• Lean Startup by Eric Ries• Startup Owner’s Manual by Steve Blank• Business Model Generation by multiple authors• Anything you Want by Derek Sivers• http://www.success.ae/• MIT Entrepreneurship courses: http://ocw.mit.edu/courses/entrepreneurship/
    54. 54. Thanks for inviting us Ahmad Takatkah Muhammad ArrabiManaging Partner, Sinbad Ventures Chief of Staff, N2V.com www.SinbadTheVC.com www.MuhammadArrabi.com @SinbadTheVC @MRArrabi
    55. 55. Thank You

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