Vitaly M. Golomb - Startup Here, Startup Now - Startup AddVenture Gdynia 2015

Startup AddVenture by CCC Startups
Startup AddVenture by CCC StartupsMentor at Startup AddVenture by CCC Startups
VITALY M. GOLOMB
CCC STARTUPS
STARTUP HERE, STARTUP MEOW
#STARTUPADDVENTURE
@VITALYG
VITALYM.GOLOMB
SANFRANCISCO//KYIV
ENTREPRENEUR//INVESTOR
DESIGNER//SPEAKER//AUTHOR
1981
1990
1993
1996
1999
2010
2013
2015
born
odessa
ukraine
arrived
sanfrancisco
dotbomb
spincircuit
UA
2005
sputnik
cccstartups.com
@cccstartups
corporate
CATS
startup
CATS
! expertsinonearea
! yearsclimbingladder
! stablelifestyle
! realresponsibilities
! lifebalance
! generalists
! earlystart
! cheaplifestyle
! nothingtolose
! nothingelsematters
Vitaly M. Golomb - Startup Here, Startup Now - Startup AddVenture Gdynia 2015
SOWHATTHEF***
ISASTARTUP?
ASTARTUPIS...
anexperimentinsearch
ofabusinessmodel-steveblank
SCALABLE

STARTUP TRANSITION COMPANY
businessmodelfound
product/marketfit
repeatablesalesmodel
managershired
break-even
profitable
rapidscale
newseniormanagement
~150people
“astartupisnotasmaller
versionofalargecompany”-steveblank
ASTARTUPISACOMPANY
THATISCONFUSEDABOUT:
1.WHATITSPRODUCTIS,
2.WHOITSCUSTOMERSARE,
3.HOWTOMAKEMONEY
-DAVEMCCLURE
“ASTARTUP’SDEFAULT
STATEIS#FAILURE.ASA
FOUNDER,YOUHAVETO
WORKTOUNFAILIT.”
-VITALYM.GOLOMB
whywouldyouwantto
startacompany?
getgoodgrades
gotoagoodcollege
getinagoodcompany
getregularpromotions
retire,playgolf,die
normalcareer
startupcareer
ifsuccessful
whatpeoplethink
itlookslike
whatitreally
lookslike
entrepreneurship
isamentaldisorder
butittakesa
littlecrazy…
tochange
theworld
so,whyareyoudoingit?
forthe
money?
fortheIPOmoney?
50
100
150
200
250
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
numberoftech
ipossince1999
26
<50
fundedstartup
successrate
30%fail
30%
unprofitable
30%
somewhat
profitable
10%big
success
BYTHEWAY...
#FAILUREIN
STARTUPSIS
OVERGLORIFIED
FAILUREIS
ahardlesson
1sttimefounder18%
repeatfailedfounder20%
repeatsuccessfulfounder30%
theoddsareagainstyou
you’llget
acquired
ifyouare
lucky&good
freedom?
normaljob:
oneboss
startup:
everyuser
isyourboss
haveafamily?
theywillsuffer
“asastartupceo,islept
likeababy. iwokeup
every2hoursandcried.”
-benhorowitz
feeling
defeated
yet?
founderandteammorale
jess lee - “why startup founders are always unhappy”
goodnews:
youcanimprove
yourchances
findaproblem
youcan’tlive
withoutsolving
don’tbuildtechnology
lookingforaproblemtosolve
solveapainfulproblem
whatisallthisleanbullshit?
lean=quickiterations
morechancesto
solvetheproblem
morechancesto#unfail
sowhat’sagoodstartup?
NOTHINGMATTERS
MORETHANTRACTION
solvesa
painful
problem
fora
specific
customer
howcanyoubesure
you’resolvingaproblem?
HOWISITCURRENTLY
BEINGSOLVED?
nocompetitors
=
noproblem
=
nomarket
stopcoding
getoutofthebuilding
talktoyourcustomers
faceyourfears
validateassumptions
HOWAREYOUDIFFERENT
ANDBETTER?
HARD?EXPENSIVE?SUCKS?
F’IN
ARISINGTIDE
LIFTSALLBOATS
what’syourbusinessmodel?
symmetric
customerpays
forexperience
asymmetric
3rdpartypays
forcustomer
DOESITscale?
$1,000,000
$2,000,000
$3,000,000
$4,000,000
Craigslist Apple Google Facebook Amazon McDonalds
revenueperemployee$3.6M
$2.15M
$1.25M
$1.1M
$691K
$64K
don’tforget:
youarebuildinga
repeatablebusiness
measureeverything
mainingredient:team
hiringishard
" much money
" stability
" support structure
" a long-term plan
! stock
! flexibility
! chance to make
a difference
whatyou
don’thave
whatyou
dohave
BUSINESSwithdomainexpertise
DESIGN ENGINEERING
balancedstartupteam
whatisyour
unfairadvantage?
ACCOMPLISHMENTS
MONEYRAISED?
PARTNERSHIPS?
GROWTH?
THESILICONVALLEYFUNDINGSTACK
BOOTSTRAP/FriendsFamily&Fools
ACCELERATORS
ANGELS/SEEDVCs
$100M+VCFUNDS
GROWTHEQUITY
circa 2015
M&A/IPO
BOOTSTRAP
ACCELERATORS
ANGELS/SEEDVCs
$100M+VCFUNDS
GROWTHEQUITY
EUROPEANFUNDINGSTACKcirca 2015
/FFF
M&A/IPO
2001DOTCOMCRASHUSVCFUNDSRANAWAYFROMEUROPE
few,STRONGEUROPEANVCFUNDSSURVIVED
ITISEASIERTOSTARTUP
ANYWHERENOWTHENIN
SILICONVALLEYIN1999
Vitaly M. Golomb - Startup Here, Startup Now - Startup AddVenture Gdynia 2015
thenewtools
ofthetrade
Vitaly M. Golomb - Startup Here, Startup Now - Startup AddVenture Gdynia 2015
VENTURE
CAPITAL
ISCHANGING
SOURCE: STEVE BLANK
SOURCE: SEED DB
MEDIANEXIT=$20M
WHYHERE?
WHYNOW?
EUROPEPRODUCESHIGHER
VENTUREEXITMULTIPLESTHANU.S.
EUROPEANEXITARE25%SMALLER,BUT…
ENTRYVALUATIONSARE3-4XLOWER
EUROPEPRODUCES
1/2ASMANYEXITSASU.S.
AND1/3OF$100M+EXITS
WITHONLY20%OFU.S.VC
MEDIANCASH-ON-CASH
$100M+EXITMULTIPLE
4.5X
US
7.2X
EUROPE
2005-2011 SOURCE: EARLYBIRD, DOW JONES VENTURE SOURCE
EUROPEANINVESTED
CAPITALUPOVER35%
IN2014ALONE SOURCE:PITCHBOOK
BRACEYOURSELVES
INVESTORSARECOMING
THEFUTUREFOR
EUROPEANSTARTUPS
ISBRIGHT
LOOKINGFORWARD
WINYOURHOME
MARKETFIRST1
support/mentor
thenextgeneration2
helpbuild
theecosystem
www.goo.gl/Y2nOL2
3
source:
WANTTHESLIDES?
FOLLOW@VITALYG
COMINGSOON
download
1STCHAPTER
freenow
www.founderco.com
@vitalyg
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