CurrentDirector, Spike InnovationMentor - River City Labs, PushStart, Commercialisation AustraliaAdvisory board, CohortpayPastCEO, iLab IncubatorCommercialisation - UQ, QUTHead of Funds Management, Imperial College LondonBSc(Hons) – chemistry (UQ)MBA (Deakin)
Question: How many of you plan to do a startup?
Can anyone think of an example?
Can anyone think of an example?
Software is eating the world – Marc Andreesen – Founder of Netscape. Now partner at Andreesen Horowitz
Skype Founded in Sweden in 2003Acquired by Microsoft in 2011 for $8.5 billionIt’s not just about digital businesses. . . Although internet presents a major opportunity that startups are aggressively tackling.There are 2.3 billion internet users globally. This represents a potential market of 2 billion customers that’s just as accessible from Brisbane as it is from Silicon Valley.Nearly 30% of internet users are in China and India – and still only 37% of the population is online.
Also Exit opportunitiesFit with portfolioAbility to add value
More important than product or marketYour objective is to show the investor that your team is backableRecognise gaps and have a plan to bring on a co-founder if neededCommon pitfall: Listing 8-10 people when most are in fact part-time / have day jobsSole founder strong correlation with failure
What’s the point??The pig is truly committed, whereas the chicken is merely an interested party. Investors like to back pigs – ie. entrepreneurs who are truly and completely committed to the outcome of their venture, have a lot at stake, and have no fallback.Signs that an entrepreneur is fully committed:You’ve quit your day job to work full-time on your startup before it is funded or has revenuesSome or all team members have moved cities to wherever makes most sense for the businessFounders have put meaningful amount of their own money into the venture
Consumer internet / social businesses are an exception. . . what problem was facebook solving??
Eric Schmidt’s “toothbrush test”
Low CAC comes from Low touch sales and High conversion ratesHigh CLVC comes from Recurring revenues,Product cross-selling / upselling or Upgrades
Andrew Mason – ex-CEO of GrouponBUT – Groupon’s market cap is $4 billion
Bing Gordon (Kleiner Perkins) : The new "critical mass" standard for VCs is you have 10 million users Angels will have lower expectations
Do you have any secret sauce?Proprietary IP?Exclusive relationships?Unique capabilities?First mover advantage?
Talk about complex sales, especially for enterprise.
Enterprise is popular among investors because:High value per customerIf the problem is real they don’t mind spending big money to solve itLess cluttered than consumer internetBusiness models tend to be more rational and less about customer whim
Intro to startups - and why you should start one today (UQ IDEA Network)
INTRODUCTION TO STARTUPS
(AND WHY YOU SHOULD START ONE TODAY!)
UQ IDEA Network
19 August 2013
Australian startup founders by educational background
University of New South Wales
University of Technology Sydney
University of Sydney
University of Melbourne
Australian Graduate School of Management
University of Wollongong
Swinburne University of Technology
Queensland University of Technology
Australian National University
Curtin University of Technology
University of Western Australia
University of Adelaide
Index: University of New South Wales = 100