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Startup secrets


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Startup secrets by Astella Investimentos. Early-stage and early-growth challenges, traps, pitfalls and best practises for daring entrepreneurs

Published in: Business

Startup secrets

  1. 1. the traps, pitfalls, mistakes, and best practices on the journey towards the summit Startup Secrets
  2. 2. blockbusters,successes,and failures There are 3 types of startups #vc4heroes
  3. 3. NO! But avoidingstupidityis easier than seeking brilliance Is there a formula for success? #vc4heroes
  4. 4. team issues,market issues,resources issues,and growth issues are determinant But there is a clear pattern #vc4heroes
  5. 5. Team Issues
  6. 6. winners are 38 years old at founding (average),and 80% are second-timers withexperience in tech Experience is a key ingredient #vc4heroes
  7. 7. winners that have mentors,use OKRs, are knowledge seekers raise 7x more capital and have 3.5x better traction Learning agility is a secret weapon #vc4heroes
  8. 8. winners are typically3-founders with history of working together It is a team game #vc4heroes
  9. 9. business-heavyare 6.2x better at enterprise software, technical-heavyare 3.3x better at product-centricstartups, and balanced teams are 2.9x better at marketplaces, ecommerces Picking the right battle #vc4heroes
  10. 10. lack of flexibilityon cap-table and understanding of how to slice the pie But 1 in 4 fails due to founder conflict #vc4heroes
  11. 11. Market Issues
  12. 12. ~50% of new product launches fail. Winners spend 41% of their time deciding what goes in products Product no one wants #vc4heroes
  13. 13. most of the times,first mover is a curse Bad timing #vc4heroes
  14. 14. 1 in 6 fails for bad CAC, churn, gross margin, working capital Bad unit economics #vc4heroes
  15. 15. two types: david x goliathor the gorilla fight Competitive fine tuning #vc4heroes
  16. 16. Money Issues
  17. 17. 1 in 3 startups fails for lack of cash. It takes 2-3x longer to validate than expected Too much optimism #vc4heroes
  18. 18. Seeds have 25% chances of raisingSeries A, which have 50% chances of gettingto Series B It is a funnel (multi-turn game) #vc4heroes
  19. 19. less money reduces in 70% chances of next round, more money reduces in 25% chances of next round Too much or not enough money #vc4heroes
  20. 20. fat startups ends up with less than 10% of equity, lean startups ends up with more than 40% of equity Dilution kills #vc4heroes
  21. 21. Growth Issues
  22. 22. 1 in every 10 startups fails due to premature scaling(traffic no conversion, product, no sales,sales no margin, CAC no LTV, people no sales) False positive (out of synch!) #vc4heroes
  23. 23. 1 in 5 fails when transformingfrom familyto tribe, to village,to city, to nation Organizational breaking points #vc4heroes
  24. 24. 1 in 10 fails for carrying too much weight (several personas, products, markets,and channels) Lack of focus #vc4heroes
  25. 25. Wrong talents reduce 2.6x the speed of startups (cultural fit x technical fit, generalists x specialists,scope x autonomy, do best x do worst) Garbage in, garbage out #vc4heroes
  26. 26. Summing up
  27. 27. There are no formulas, but there are patterns Stages can be measured with specific milestones Learning is a fundamental unit of progress for startups Most startup advice is wrong The score takes care of itself (skill & luck) #vc4heroes
  28. 28. Sources #vc4heroes
  29. 29. #vc4heroes