Starting Startups 2010

• Who am I ? (some Shameless Bragging)
• I believe in Change “The only Constant”
• I agree with:
– Charles Darwin
– Albert Einstein
– Abraham Maslow
• Content to Consumer using Technology
• Starting Startup’s
– Markets and Marketing
– Putting a Team Together
– Business Plan basics
2008 © George T. Haber All rights reserved

Only child of Auschwitz Survivors


School and Teenage Life
• Communism:
• Theory good but
Practice a disaster
– Idiots running the place
– All Equal but some more
equal than others !!

• What could I do ?
– Nothing was available
– Can’t even complain
• Rock & Roll & Disco
– Necessity the mother of invention =>built my Gear
– Dream of Israel…

1975 Let’s go to Israel
• “Family” near Tel Aviv
• Haifa Technion
– Student BSc EE
– DJ & Haifa University
– Life is good
– Air Force @Army
– Getting Married
– Graduate
– House, Car, Mortgage etc..
– Dan my first son is Born
– Work
• Dream of Silicon Valley

1988 Silicon Valley

Dream of StartUP

Daisy


In Motion with Love and Emotion
Founder & CEO
• 1993–1997 CompCore Multimedia = Video & DVD
– $70M M&A Zoran 12/1997
• 1997–2000 GigaPixel = 3D Graphics
– $186M M&A 3Dfx 03/2000
• 2000–2004 Mobilygen = H264 Video
– $33M M&A Maxim 10/2008
• 2006 CrestaTech = Programmable Broadband
– RF and Software (SDR)
– CrestaTV

In Motion with Love and Emotion
• Board Member Public Companies (NASDAQ) :
– Zoran 1997– 2000
– 3Dfx 2000– 2002
– InterVideo 2001– 2006
• Board Member Private Companies
– Class Data Systems Israel Acquired by CISCO
– InterAKT Romania Acquired by Adobe
– Avangate Romania
– Lucid 3D Israel
– NoBug Romania
• Angel Investor
– Silicon Spice Acquired by Broadcom $1.2B
– Magma Design IPO in 2001
– Kagor Networks Acquired by Juniper $67M
– Aristo M&A with Monterey Design

In the news 


What have I learned?
Change the ONE and ONLY Constant
• Possible? Impossible? just Perception:
– Possible now seemed impossible once
– Impossible now may be possible in future
• Change Happens:
– Evolution (or Devolution)
– Revolution
– Disruption (Accidents)

Evolution: Cost, Performance, Quality
• The Strong Become Stronger!
• Pushing the limits of what’s Possible
– Improving and fine-tuning the platforms
• Cheaper Faster Better


Revolution: New ideas create new realities
• Rules change Monopolies Crumble!
• Breaking the limits of what’s Possible
– Creating new Realities
– Technologies and platforms


Disruption and Accidents
• Destroying the “Old” rewriting the rulers
• The Big Guys are in denial !
• Yahoo Organizing the Internet’s Chaos
• Amazon Organizing the worlds Books, DVD’s
• EBay connecting Sellers and Buyers
• Skype Free Phone
• Google Monetizing Relevance
• YouTube Organizing the worlds video content
• iTunes Music, Video, Games, Apps distribution
• FaceBook Organizing social life
• Twitter connecting People and spreading ideas

Darwin says: Adapt or Die ;)
• Resilience+Luck or Strategy+Tactics
– Prepare for worst, hope for best
– Solve problems with Action and
predict the Reaction
• Timing is crucial => Cross the Chasm
– Early (No Market)
– In time (Market, Few Competitors)
– Late (Why bother ?)


Einstein says: E = mc2
• E = mc2 For people
and organization
• E = Energy
• m = Mass of knowledge
(Education & Experience)
• c = Speed of reaction
(Leadership & Attitude)
• Hire only the best
• Leadership and Attitude
• Relevant Experience

Maslow says: Hierarchy of Needs
Survival, Safety, Desire, Ego, Evolve

Self
Evolve: Create, Teach,
Propel Innovate
Ego Ego: Importance,
Self Esteem Aesthetics, Prestige
Desire to Belong Desire: Understand,
Social skill Accept, Belong
Safety & Security Safety: Peace, Order,
Order, Laws, Limits Laws, Limits, Financial

Survival of Self and Species Survival: Life, Food,
Health, Sleep, Sex

I say: C2CuT
C2CuT ? wtf.. is that?

Content to Consumer
using Technology

User Experience


Content to Consumer thru “The Ages”
Age Bits Time to What Technology Consumer
Historic Period Propagate Content / Platform
Stone Age 1 1M Years Survival Rocks & Sticks Cave Man
Verbal
Dark Ages 1K 10K Years Stories Small Groups
Arrows Swords
Papyrus King’s
Stories
Middle Ages 10K 100 Years Paper Noble’s
Folklore
Transportation Clergy
News Papers Industrial Elite
Information
Industrial Age 100K 1Year Morse Code Military
News
Radio
News Papers
Industrial
Post Industrial 10M 100 Days Radio Consumers
Propaganda
TV
Radio
Data Scientists
Information Age 1G 1 Day TV
Entertainment Professionals
Computers
Radio
Entertainment
TV Everyone!!
Browser + Cloud 100G 1 Minute Media Rich
Connected PC Everywhere!!
Data
Mobile

Technology
• Content to Consumer using Technology on Platform
• Content using Technology is:
– Created, Captured, Processed & Stored
– Delivered
– Consumed
• Content’s value is Distribution, Virality & Quality
– Consumer paying one way or another to someone
– Tiny resource can create lot’s of $$$
• Paper, Radio, TV, PC’s, Mobile are just a Platform
– Hardware (body)
– Software (soul)
• Technology should be easy to use and transparent

User Experience: < Simple & Intuitive >
3,000 BC Today

Can you believe it took 5,000 years for Simple to be Back

Why start a StartUp ?
The best thing one can do
• Simple “in theory” ;)
– IDEA for a PRODUCT or SERVICE
– LEADERSHIP and ATITUDE to make it
– DISCIPLINE and APTITUDE to stay focused on
EXECUTION
• Creating value from dreams an amazing
journey and a Godly feeling
– More fulfilling than anything else
• Better than SEX and lasts a loooooot longer ;)

Why not !
• Only the Strongest & Fastest & Luckiest survive
• Very hard work many sleepless nights
– Consider the worst possible outcome
– Pressure isolation from family, friends and social life
– Huge stress on every aspect of life
• All the odds against you 80% to 90% failure
– Very few companies get out of this alive and well
– 10% Survive the first few years
– 2% are Big successes IPO or M&A
– 5% go on in some “Corporate Coma”

Do you “Really” want to do it?
Need some advice ?


The basics a Crash Course!!
1) Everything changes all the time so constantly ask the
“Passover question”: What’s different tonight from all other
nights? <Ma nishtana ha-laila ha-zeh mi-kol ha-leilot?>

2) Remember the wise sayings:
– Fear only, Fear itself
– Only the Paranoid survive .. and some of the lucky ones
– Success comes from backbone, not wishbone
– The best way to predict the future is to create it

3) Understand and analyze your business
– Leadership
– Who cares = Defines your Customers and Partners
– What is your Business after you survive
– What is your Unfair Advantage in that business
– Marketing distribution creating a brand
– Resource planning
– How to fund it? It takes money to make money

Leadership
You have it or you don't !
• Leadership is the sum of two virtues:
– Competence (your specialty, skills, know-how)
– Authenticity (your identity, character, education)
• The best leaders operate in four dimensions
– Vision => Predict the future (The Dream)
– Reality => Make sure it’s possible (No Madness)
– Ethics => Make it happen ethically (No Crime)
– Courage => It is going to be hard (Survival)
• The challenge is to have these contradictory
modes of thinking and behaving at once

Who Cares ?
Define Market and Clients
• Those who care are your clients!!
– How many “caring Clients” = TAM
– How much do they care = ARPU
• If you have to Evangelize you are in trouble
– Markets need a very powerful incentive to change
• “Clients and Markets are right” until proven otherwise
– People and companies are self-interested
– If you don't provide the solution your competition will
• Should only sell what you can deliver
• Not everything you build can be sold


What is your Business ?
Essential for your survival
• The most important question to answer
– Focus on markets and clients not technology
• Ice Blocks -> Refrigerators
• Few companies realize what business they are
in!
– Candles -> Light Bulb -> LED’s
– Main Frames -> PC -> Cell Phones
– OS -> Browser
– Record player -> iPod


The “Unfair Advantage”
Essential for success

• The key for long term survival and success
• Unfair Advantage can be:
– Technology
– Marketing
– Sales Channels
– Engineering
– Manufacturing
– Personal charm & Resilience
– Financial Strengths
– Etc….


Market and Marketing
Is Marketing Sales & Advertising?
In large Corporations separate functions

In StartUp's everyone must be involved
Legal

Manufacturing Sales
Market Research

Product Specification
QA Marketing PR
Product Planning

Business Development
Accounts/Finance R&D
HR

Holistic Strategy
1) Who is involved?
CUSTOMERS CORPORATION COLLABORATORS

MARKET
SPACE 2) How can we define relevant market space?

POTENTIAL 3) What potential opportunities are emerging from
OPPORTUNITIES the market space?

BUSINESS
4) What business capabilities and infrastructure are
INVESTMENT required?
CUSTOMER CORE COLLABORATIVE
FOCUS COMPETENCIES NETWORK


Resources Planning
• Market and Clients (ROI)= f( ARPU, Cost)
• Team and Competency
– Engineers to create (Energy)
– Management and Corporate Culture for (Focus)
• Money = to make it happen (Funding)
– Money is difficult to find when needed :(
– Money is plenty when not needed :)
• Balance between Greed and Fear

How to Fund it?
It takes money to make money
• Funding = Getting money from:
– Ideal Money => Customer, Bootstrap
– Smart Money => Angel Investors, VC’s
– Colored Money => Clients, Corporate Partners
– Stupid Money => Credit Line, Bank Loans
• The world is changing and so should your plan
• “The Presentation”
– Company and Market 4 - 6 slides
– Product and Competitors 4 - 6 slides
– The Financial Plan 3 - 7 slides

Business Plan 1) Company and Market

• Mission Statement
– Company's business (should fit on a business card)
• The Company
– Basic facts (year established, # of employees, location,
major milestones, …)
• Team
– Background of management and founding team
– Board composition
• Market
– What problem is the company going to solve
– Trends, historic and projected Market size
– Product match to market needs and shifts

Business Plan 2) Product and Competitors
• Product and Technology
– Product description
– Development schedule
– Differentiation
– Price point
• Go to Market Strategy
– Sales channels
– Partnerships
– Customers
• Competition
– Competitors and positioning
• Barriers of Entry
– How does the company intends to keep its advantage over the
competition


Business Plan 3) The Financial Plan
• ROI
– Cost of acquisition
– ARPU
– Cost of support / renewal
• Projected cash flow
– Product Pricing strategy
– Current balance sheet
– Projected head count by functional area
• Historic and projected P&L
– Optimistic
– Pessimistic
• The Deal
– Cap table
– Amounts raised before and now
– Valuation asked


Management
• Managers measured by results
– depth of their convictions
– strength of commitment -- and the power of results
• Leaders must keep everyone moving in the
same direction, at a sustainable pace
• The leader must be the one grabbing the flag
and lead up the hill with everyone following
• A good leader is the one who ensures that
others will take the over the flag and continue
to charge

Corporate Culture
Keeping it together
• People must be included in decisions and process
• Success tied to willingness and ability to take
ownership
• Companies depend on people. You can't ignore it or try
to get around it
• Don't ask people to set their egos aside for the good of
the team. Feed their egos.
• Give each person an area in which to excel, and you'll
find that you have a team that really pulls together.
– Make one person team leader of communications, another
the team's leader of technology, a third the client-services
leader etc… 2008 © George T. Haber All rights reserved

Attitude
We all chose our attitude
• Attitude is the ability to manage conflict (polarity). In
every aspect of life, polarities are inevitable they are in
the nature of things. How we act, how we respond is
what separates greatness from mediocrity
• Greatness comes with recognizing that our potential is
limited only by how we choose to use our freedom,
how persistent and resolute we are - in short, by our
attitude
• Talent, Education, Family and Financial Privileges are
different for everyone. But we all have the capacity and
the duty to be great in what we do
• We are all free to chooseT.and change our attitude
2008 © George Haber All rights reserved

CrestaTech

Hello …


Haber’s Law: If can be done in SW it will
2010
3G

2009
Tuners
2000
VideoHD

1990
Modem
1980
Video
1970
Audio

Today

…Billion dollar HW markets converted to Software

2007 The iPhone


Today's Consumers of Content
• Consumers are Mobile
• Always connected
• Our Devices always with us wherever
we go
• All Digital Content on the Device
– Contacts, games, E-Books, Skype ….
– Pictures, Movies, Videos, Music ….
• Access to Broadcast Content missing
– TV, Radio and GPS

Reinventing Radio, TV & GPS
All Media Wherever you are

George T. Haber
Founder & CEO

About CrestaTech
• 2006 Founded by George T. Haber and Mihai Murgulescu

• 2007 Series A Funding from Sofinnova and Andy Bechtolsheim

• 2009 Introduce Universal Broadband Reception: TV, Radio & GPS
– Production Ready Silicon: CTC-200/201
– Evaluation Boards Shipping Now: PCIe & USB
– Receive all digital or analog Radio, TV & GPS
ATSC, DVBT, QAM, NTSC, PAL plus many others

• Production Ready HW & SW with 25 staff and app $9M
– RF and PC interface chips production ready
– SDR Demodulation of OFDM, QAM, 8VSB, FM, GPS and Analog PAL, NTSC

Confidential

The Problems
• Existing Standards • New, Emerging Standards
GB20600
CMMB
DVBT DVBH DVBT2
ATSC ATSC M/H
PAL ISDBT DVBH2 ISDBT SEG1
DAB
NTSC
Cable QAM GPS Radio Galileo Glonass Compass

Consistent Frequency Response …

Unique -40
-45 Radio Cell Point
Signal Strength (dB)

-50 TV bands GPS
performance -55
-60
+ MediaFlo
solutions
bias for each -65
-70 become
-75
standard -80
-85
impractical
-90 0 0.5 1 1.5
Frequency (GHz)
…Broad spectrum


The Solution = Programmable Broadband

TRANSCEIVER 8VSB QAM OFDM FM

Programmable RF Software Defined Radio


Radio, TV & GPS Reinvented

Broadcast / Com
User Experience = Universal TV 2.0
PC = Mobile Media Center

User Experience
Dynamic channel grid
Broadcast channels

Stored videos:
DVD, Netflix, Amazon
Online videos:
You Tube, Internet

 Skinn'able,

 Cross Platform

On your desktop,

Within browser
> Facebook, MySpace or…
Confidential

Reinventing Radio, TV & GPS
CrestaTV = a New User Experience all Media wherever you are
CrestaTV = the world’s first and only Universal Radio, TV & GPS! .
ATSC, QAM, DVBT, NTSC, PAL, FM and GPS available now
ATSC M/H, CMMB, GB20600, ISBTN, DAB, HD-Radio coming soon
Patented Programmable RF and Software Defined Radio with New algorithms for all
processors from Atom to multi-core i7
Customer and partner feedback is excellent !

CrestaTV = Radio, TV & GPS Reinvented

The End

Thank You


Starting Startups 2010

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