2011.04.08 startup-sauna-stockholm


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Ake Edlund from SICS Seed Accelerator (see blog at www.fortune1m.com) presented his thoughts about Startup Life and Seed Accelerators at Startup Sauna Stockholm. In the slides there are more, including how cloud computing is useful for startups. Link to SICS Seed Accelerator is www.sics.se/seedaccelerator

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2011.04.08 startup-sauna-stockholm

  1. 1. Åke Edlund - “multitasker”2011 Seed Accelerator Co-founder C!C KTH-SICS Founder Cloud Innovation Center Coach Cycore Sony Ericsson EU-Supply Parallel Systems Ericsson Business Innovation1993 Uppsala, Rice, Berkeley, TechnionStartups Academia Industry
  2. 2. Åke Edlund Startup Life & Seed AcceleratorsSEED ACCELERATOR
  3. 3. Part 1/2 Startup Life
  4. 4. Preparing this presentation Something I’d needed when in your age My view - minimizing copy-paste Discussion – please do interrupt Adding realism to your dreams, still keeping them alive Inspiration
  5. 5. Startups, the theory #1 Get an idea Find a garage Create a world leading …. Get funding Do an IPO World domination!
  6. 6. Startups, the theory #2 Get an idea Write a business plan Get funding …
  7. 7. Startups, the theory #3 Get/steal an idea Use open source spare parts Add your own proprietary part Write a business plan Get funding …
  8. 8. Startups, the theory #4 Get an idea Patent it Wait for someone big to buy you …
  9. 9. Startups, the theory #4bGet an idea that complements some big players portfolioRun your business long enough to attract a good user baseWait some moreSomeone might give you a call…
  10. 10. Startups, the theory #5New technologyBuild a long range of products around thisLaunch them one after another…. that’s the official story
  11. 11. What can we learn from successstories? Not much Inspirational Some “must haves”
  12. 12. Startups, the non-theory, failures More to learn here! But who to tell you?
  13. 13. Startup failure #1 – too early Great product, won many prizes Many years of hard work in garage Bring in fresh VC capital CEO and mgmt from world class firm Defunct pricing model, non-viral Have to teach the market Heavy staffing and expansion – burn! Cash flow….
  14. 14. Startup failure #2 – too slowEven greater productStill possible to make betterJumps into an incubatorFix-fix-fix…. (instead of Ship-fix-…)Turns more and more into an R&D projectIncubator hires incompetent CEOs…Times up! Share holders leave.
  15. 15. Startup failure #3 – lost controlGreat ideaRunning fast, quick successful rolloutHuge burnrate, but succeeds in getting huge investmentsGreat offering of buyout – but, lost control, can’t get a sellMarket diesStruggle on
  16. 16. Startup failure #4 – never startedDecide to combine with consultancyAfter some years, you realize you’re nothingmore (or less) than a consultancy firm
  17. 17. What to learn from these failures? Quite much But, the risks comes in many flavours #1: Listen to your intuition
  18. 18. Before we start Why startup? Why me? Why now?
  19. 19. Why startup?“Whatever you are building, its about passion, and lessabout the money.Your goals should be about changing theworld, or making the world a better place. There aremany people who set out to change the world a betterplace and didnt make a lot of money. But there are evenmore who set out to make a lot of money, did not make alot of money and did not change the world.” Guy Kawasaki
  20. 20. Why startup? Freedom, kind of … Creativity AdVenture, you better like it...
  21. 21. Build your teamFriends, or not?Getting full commitment – fair shareGet advice, but don’t expect too much
  22. 22. Build a presence Web – blog, mail, twitter… F2F – conferences (outside), …
  23. 23. Cost control – consulting In parallel with building a business As part of product development Safer but slower Cash flow Reality check Recruitment
  24. 24. Office – do you need one?Home sweet home, Cafés, Hotel lobbies, …
  25. 25. Finding customers Use your network Build a presence on the web Lot of calls, and meetings
  26. 26. Meeting customers, closing deals Negotiation – learn how, practice Ask, and ask again Build a relationship Learn to say ‘no’
  27. 27. Endurance - company Cash flow – again! Your time – is limited
  28. 28. Endurance - you Burn out - not a joke - hard to get back from - signs – that you won’t listen to
  29. 29. Endurance – work hard, but smartValue your time. Get your sleep. Get time off.
  30. 30. Incubators Do you really need them? For what? How good are they?
  31. 31. Before buying a .com address Did you do your homework? Test it, not only on friends Do your googeling, but don’t drown Don’t overdo it!
  32. 32. Before buying a .com addressAgain: don’t read too muchIt is a highly complex problem, too many unknowns.Get hands-on experience
  33. 33. “You miss 100% of the shots you never take.” Wayne Gretzky (*)(*)Thanks John Greathouse - http://infochachkie.com/nps/
  34. 34. Part 2/2Seed Accelerators
  35. 35. VCs – old school Are you a x15 startup? Do you really need them, now? What will it cost you? Are they ‘smart money’ or just money? And are there any? And if not ….. don’t think business angels are that much better.
  36. 36. New School Re-think Startups Re-think Incubators Re-think VCs
  37. 37. The startup world is changing "Startups can be run so cheaply now (with open-source software, cloud computing, and virtual teams spread across the Web) that many more can achieve profitability without any VC cash.” Paul Graham,Ycombinator
  38. 38. The startup world is changing "Imagine what it would do to the VC business if the next hot company didn’t take VC at all. The less venture capital there is for new startups, the faster the decoupling will begin.” Paul Graham,Ycombinator
  39. 39. The Innovation Landscape is Changing Bootstrapping: Cloud Computing, Open Source, Network, MobilityStartup: 1. Lower riskBootstrapping 2. Quicker to start 1. More Startups 2. More controlMore flexible 3. Startup gets further to Startups with lessInvestor: + - More to evaluate Lower risk Less control Lower investment to more Harder to get in early Faster response Missing more
  40. 40. Seed AcceleratorsHelping many during a short time to get to a good next step.Very early stage. Technical focus. Technical entrepreneurs with Network AND Often backed by Venture Capital - that get helpwith volume and early information and lower risk. SEED ACCELERATOR
  41. 41. March 2010: "Y Combinator Matures" - 1/4 of Startups Funded Before They Finish the ProgramOctober 2010: 1000 sökandeJan 29, 2011: "Yuri Milner, SV Angel Offer EVERY New Y Combinator Startup $150k"
  42. 42. Seed Accelerator challenges 7 3 6 4 51 21 Applications flow2 Filtering3 Deal making - start4 Match making5 Value increase6 Deal making - end, Finding investments for next step7 “Good ones” - seldom go through these services 42
  43. 43. SICS Seed Accelerator - Creating startups from scratch - Helping existing startups and innovative companies on clouds!SEED ACCELERATOR
  45. 45. Stockholm, examples of ongoing startups right now
  46. 46. Wrap up Startup Life and Seed AcceleratorsNote: Cloud Computing and Startups slides added for later
  47. 47. Summary We could learn some from the success stories, but more from the failures. Many like to give advice, but most of the mistakes you have to make yourself.
  48. 48. Summary Dont count on getting external investments. Don’t think startup, think microstartup
  49. 49. Summary Leverage on all technology and networking possibly available. Cloud computing is a good idea for many microstartups.
  50. 50. Summary Seed Accelerator is a unique starting point for microstartups close by.
  51. 51. Summary – Most important (1/II) Make sure to follow your heart, listen to your intuition - it is trying to tell you something important.
  52. 52. Summary – Most important (II/II) And make sure to have a good life at the same time, it is possible to combine with startups.
  53. 53. If you have the time – I doubt it… Write this down: www.sics.se/seedaccelerator www.fortune1m.com edlund@sics.se
  54. 54. “Stay Hungry, Stay Foolish” Steve Jobs
  55. 55. SEED ACCELERATOR Thanks! edlund@sics.se www.sics.se/seedaccelerator www.fortune1m.com
  56. 56. Extra SlidesMore topics, about me
  57. 57. Part 3/3Cloud Computing and Startups
  58. 58. Where do you have your focus today?
  59. 59. To Create New Or Manage Server Room(s)? Business?
  60. 60. When to (maybe) use Clouds today?Time limited tasks
  61. 61. Pilots
  62. 62. Peaks
  63. 63. “We are now working on the new demo ---- but it will take some time.(Our main computer has crashed ... )” 2011....
  64. 64. 2002. Stockholm. Startup.A typical Saturday evening... - 3 months of buying - Weeks to get it right - 1 month of POC - Years of ownership
  65. 65. 2002. Stockholm. Startup.A typical Saturday evening... - 3 months of buying - Weeks to get it right - 1 month of POC - Years of ownership
  66. 66. Enter the Startups!
  67. 67. Startups Cloud"Startups can be run so cheaply now (with open-source software, cloudcomputing, and virtual teams spreadacross the Web) that many more can achieve profitability without any VC cash.” Paul Graham,Y Combinator
  68. 68. “Top  5  predic7ons  on  cloud  compu7ng   2010” 1.  Rise  of  standards 2.  First  major  cloud  compu7ng  provider  outages 3.  Microso<  will  be  relevant  in  the  cloud 4.  Rapid  consolida7on  of  exis7ng  providers 5.  Rapid  rise  of  cloud  compu7ng  startupshGp://www.infoworld.com/d/cloud-­‐compu7ng/top-­‐5-­‐cloud-­‐compu7ng-­‐predic7ons-­‐2010-­‐188
  69. 69. We’re already thereEvery company in Benchmark’s portfolio uses Amazon’s cloud infrastructure in some way, and about one-third of them operate entirely on web-based services and infrastructure.Billing startup Zuora, for example, is doing well despite having“not a single IT guy, not a one,” Fenton said –  and that’s more meaningful than an analyst’s report. http://venturebeat.com/2009/06/25/ who-uses-cloud-computing-startups- do-vcs-dont/
  70. 70. More to discuss….Recruitment – kind of Marketing Nishing – the key to success and partnershipsNovel professional networks – ycombinator Investment cycles, building a step stone to IPOPricing – an art form, don’t overcomplicate it Know yourselfCustomer demand – do they know best? PitchingExecute – improve your skills More on VCsLeadership – work on it, daily Business plansTime to market – do you want/can you do it? Visions – or mantras, what is most useful, whyBusiness angels – or devils? at all? More on Ycombinator – pro and cons Exits – thinking about it already? Technology vs Sales – Ship vs Fix
  71. 71. SEED ACCELERATOR !"#$% !&()$% Åke Edlund
  72. 72. http://kaljundi.com/2010/12/11/startup-bullshit-bingo