The Myths of Innovation
Benjamin Joffe | Plus Eight Star | IGNITE, Paris | 2009.09

The Myths
1. Entrepreneurs have original ideas
2. It’s all about trying enough
3. The vision is clear from day 1
4. Entrepreneurs make millions
5. Innovation is always good

When was it invented?

Europe
Gutemberg | ~1450
Korea
Metal | ~1230
China
Wooden | ~1040

Book by Scott Berkun
(Same title)
Published: 2007
Even at Ignite!

Mobile SNS in Japan
• In 2003!
• Location-based
• Avatars
Other user’s
avatar / distance / nickname
• Virtual items

I heard that before!

Definitions
Entrepreneur
Inventor (Business)
Idea (Prototype)
(e.g. Chocolate + Hemp)

Winner Bias
They talk but don’t race
We don’t keep track of how many start

DNA Bias
“You don’t change horses mid-race”
He changed his ride!
(This one has no rider)
Nobody knows the track’s shape

Examples from Asia
#1 SNS in Korea #2 SNS in China #1 SNS in Japan
US$100M in 2008 Raised US$500M US$120M in 2008

Changing riders
#1 SNS in Korea #2 SNS in China #1 SNS in Japan
Yong Hyoung Wang Xing Batara Eto
Founder Founder CTO
Cyworld Xiaonei Mixi
Gave most
Sold for Started Mixi
shares to
US$2mln as an intern!
keep going

Changing diet
#1 Mobile SNS in Japan
US$250M in 2008
IPO: US$1.2bln
Initial business model? Ads CPA Virtual goods

Changing media + biz model!
#2 Mobile SNS in Japan
US$60M in 2008
IPO: US$1.4bln

Sticking to it
Tencent
#1 SNS in China
US$1 bln in 2008
90% From Virtual Goods
(40% Net Margin) Market cap
US$30 bln
(more than eBay)
IM was not making money and
our competitors moved to other
ventures. I did not have other
Pony Ma
ideas so I stuck to it. Founder & CEO
Tencent (QQ)

Too innovative?

“The owls are not what they seem”

“The owls are not what they seem”
IGNITE Boise Talk
Brian Bothwell
July 16, 2009

It’s Iron Man!
Timing
Infrastructure
Finance
+
Adaptability

Merci !
Learn more about “Innovation Arbitrage”
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