9 Factors Silicon Valley investors consider for European startups, how to choose an angel or venture capital investor, and market trends that support growing a startup outside the USA.
Harvard Business School: Why Companies Fail and How Their Founders Can Bounce...ATUL RAJA
Leading a failed company can often help a career by providing experience, insight, and contacts that lead to new opportunities. We need to differentiate; failure of an enterprise, product, or initiative and the personal failure of an individual executive are two very different things. While the former is a learning experience that can lead to future opportunities, the latter can damn a career. Read this Harvard Business School insight…
Jacco vanderKooij - This time it’s personal: Business ethics & ego in a globa...SaaStock
The moral imperative for SaaS vendors is the idea that "what got you to this point, will not get you to the next point". Many founders/leaders of a company have achieved their success by bucking the trend and ignoring the advice of trusted advisors. This for many is perceived as having an ego. But this was needed for survival to make it this far. Then suddenly this method stops working. That point has come for many of us, as the problems we face today are far greater than any single company can tackle. It requires companies to work together as a team, it asks for die hard competitors (Apple and Google) to create a unified front, and may even require a joint venture between a multinational and a small start-up with innovative products. This is the time to put your ego in check and let common sense prevail.
Startups primarily fail because the vision of the founders, leaders and the team does not match reality. That's why we continue with our projects independent of market fit, when the technology isn't really ready, or there are clear competitive disadvantages.
This deck introduces the idea of matching vision with reality, and outlines seven classic ways that startups fail.
Management manual for a start up entrepreneur - managing teams and leading ne...Charles Pozzo di Borgo
It is a SIMPLE Down-to-Earth Working manual for an entrepreneur-to-be – from foundation to expansion (maturity= business as usual)
For different stages: Things and issues to be tackled, agreements, problem identification, critical capabilities needed in different stages, how to secure those capabilities are available, milestones and way of acting with them…
KEEP the main focus on organisational development and management practices (our course topic)
My own version of BRL (Business Readiness Level –”thermometer”)
Like a good manual – it has a structure and content pages that lead quickly to the right topic area when your customer ”holder of the manual” has a problem in their hands
Harvard Business School: Why Companies Fail and How Their Founders Can Bounce...ATUL RAJA
Leading a failed company can often help a career by providing experience, insight, and contacts that lead to new opportunities. We need to differentiate; failure of an enterprise, product, or initiative and the personal failure of an individual executive are two very different things. While the former is a learning experience that can lead to future opportunities, the latter can damn a career. Read this Harvard Business School insight…
Jacco vanderKooij - This time it’s personal: Business ethics & ego in a globa...SaaStock
The moral imperative for SaaS vendors is the idea that "what got you to this point, will not get you to the next point". Many founders/leaders of a company have achieved their success by bucking the trend and ignoring the advice of trusted advisors. This for many is perceived as having an ego. But this was needed for survival to make it this far. Then suddenly this method stops working. That point has come for many of us, as the problems we face today are far greater than any single company can tackle. It requires companies to work together as a team, it asks for die hard competitors (Apple and Google) to create a unified front, and may even require a joint venture between a multinational and a small start-up with innovative products. This is the time to put your ego in check and let common sense prevail.
Startups primarily fail because the vision of the founders, leaders and the team does not match reality. That's why we continue with our projects independent of market fit, when the technology isn't really ready, or there are clear competitive disadvantages.
This deck introduces the idea of matching vision with reality, and outlines seven classic ways that startups fail.
Management manual for a start up entrepreneur - managing teams and leading ne...Charles Pozzo di Borgo
It is a SIMPLE Down-to-Earth Working manual for an entrepreneur-to-be – from foundation to expansion (maturity= business as usual)
For different stages: Things and issues to be tackled, agreements, problem identification, critical capabilities needed in different stages, how to secure those capabilities are available, milestones and way of acting with them…
KEEP the main focus on organisational development and management practices (our course topic)
My own version of BRL (Business Readiness Level –”thermometer”)
Like a good manual – it has a structure and content pages that lead quickly to the right topic area when your customer ”holder of the manual” has a problem in their hands
Most small businesses fail. Thereasons are the owners lack of business skills, business experience and business planning. Learn what to do to avoid failure
Creating the Conditions for Sustainable Innovation The Leadership Imperative ...Meghan Daily
Organizations need innovation to survive and thrive. Thus, they need leaders who excel at driving innovation. But many leaders fall short when it comes to fostering ideas. This report doesn’t question if leaders themselves will be the source of your next great idea. Rather, when that idea arises—from a team member, a customer, or some other source—will leaders be able to foster it an bring it to fruition?
Over the past few years, DDI has worked with the LUMA Institute to teach leaders to foster innovation. We found to be effective, leaders must:
Inspire Curiosity
Challenge Current Perspectives
Create Freedom
Drive Discipline.
The 8 Things Everyone Should Know About Startup FundingWilly Braun
Startup funding is not intuitive: you invest large amounts of money in companies that have proven very little, with a really high rate of failure.
At first glance, it is even total nonsense financially speaking: you put money in companies that have no profit AND don’t plan to pay dividends before *long* (hello Amazon) while not being liquid either (you can’t sell the stocks easily since they are not publicly listed).
So it is very normal that this topic raises questions. Our goal here is to share the underlying lessons and assumptions of VC when they look at a startup.
Pessimists: So you don’t believe things will turn around, then exit this presentation NOW.
Optimists: don’t forget that things will turn around. If you don’t remember this, you will end up in a worse position when it does come.
How should supply chain adapt with changing times and the future - Piotr Pola...ELSCC
Markets are undergoing dramatic changes caused by technological revolution. Companies are able to deliver products at the same time better, cheaper and more attractive, comparing to other market players. As a result entire product lines and markets could emerge or disappear in one moment.
RESULTS.com is widely recognized as having one of the best strategic planning templates in the world. In this workshop with our Head of Strategy, Stephen Lynch, you’ll learn a selection of our best practices to create your one-page strategic plan.
Working with thousands of clients, we’ve learned what works and what doesn’t in the real world when it comes to creating and executing business strategy. It’s not about filling in a planning template, it’s about making wise strategic choices that will set your organization up for future success, and cascading your decisions down to every role to align and focus your team using a strategy execution software tool like RESULTS.com
This is First Round's effort to provide an in-depth snapshot of what founders across the entire tech ecosystem think, feel, fear and value. We surveyed over 860 venture-backed founders who volunteered their experience and opinions.
The main reasons for why entrepreneurships fail are examined as a research paper by Özge Kavas and Umut Türemen. Also, this was a project for one of our classes, which we got A+
Most small businesses fail. Thereasons are the owners lack of business skills, business experience and business planning. Learn what to do to avoid failure
Creating the Conditions for Sustainable Innovation The Leadership Imperative ...Meghan Daily
Organizations need innovation to survive and thrive. Thus, they need leaders who excel at driving innovation. But many leaders fall short when it comes to fostering ideas. This report doesn’t question if leaders themselves will be the source of your next great idea. Rather, when that idea arises—from a team member, a customer, or some other source—will leaders be able to foster it an bring it to fruition?
Over the past few years, DDI has worked with the LUMA Institute to teach leaders to foster innovation. We found to be effective, leaders must:
Inspire Curiosity
Challenge Current Perspectives
Create Freedom
Drive Discipline.
The 8 Things Everyone Should Know About Startup FundingWilly Braun
Startup funding is not intuitive: you invest large amounts of money in companies that have proven very little, with a really high rate of failure.
At first glance, it is even total nonsense financially speaking: you put money in companies that have no profit AND don’t plan to pay dividends before *long* (hello Amazon) while not being liquid either (you can’t sell the stocks easily since they are not publicly listed).
So it is very normal that this topic raises questions. Our goal here is to share the underlying lessons and assumptions of VC when they look at a startup.
Pessimists: So you don’t believe things will turn around, then exit this presentation NOW.
Optimists: don’t forget that things will turn around. If you don’t remember this, you will end up in a worse position when it does come.
How should supply chain adapt with changing times and the future - Piotr Pola...ELSCC
Markets are undergoing dramatic changes caused by technological revolution. Companies are able to deliver products at the same time better, cheaper and more attractive, comparing to other market players. As a result entire product lines and markets could emerge or disappear in one moment.
RESULTS.com is widely recognized as having one of the best strategic planning templates in the world. In this workshop with our Head of Strategy, Stephen Lynch, you’ll learn a selection of our best practices to create your one-page strategic plan.
Working with thousands of clients, we’ve learned what works and what doesn’t in the real world when it comes to creating and executing business strategy. It’s not about filling in a planning template, it’s about making wise strategic choices that will set your organization up for future success, and cascading your decisions down to every role to align and focus your team using a strategy execution software tool like RESULTS.com
This is First Round's effort to provide an in-depth snapshot of what founders across the entire tech ecosystem think, feel, fear and value. We surveyed over 860 venture-backed founders who volunteered their experience and opinions.
The main reasons for why entrepreneurships fail are examined as a research paper by Özge Kavas and Umut Türemen. Also, this was a project for one of our classes, which we got A+
Questions in the meeting: From Startups to Venture CapitalistsWiziin Inc.
Are you a startup founder looking to secure funding from venture capitalists? Do you want to know the questions to expect during a meeting with VCs? If so, our new ebook, "Questions in the Meeting: From Startups to Venture Capitalists," is perfect for you.
Securing funding from venture capitalists is critical for many startups. However, it can be challenging to navigate the process, especially if you are not familiar with the types of questions that VCs usually ask during meetings.
To help startup founders prepare for these meetings, our ebook provides a comprehensive list of questions that VCs typically ask when considering investing in a startup. By preparing for these questions, you can communicate your business's value proposition, market opportunity, and growth potential effectively.
In addition, the ebook also provides a list of questions that startups should ask during meetings with VCs. By asking these questions, you can gain a better understanding of the VC's investment strategy, and determine if they are the right fit for your business.
By downloading "Questions in the Meeting: From Startups to Venture Capitalists," you'll have access to a valuable resource that can help you prepare for your next meeting with a VC. With the right preparation, you'll be able to answer any question with confidence and increase your chances of securing the funding that your business needs to grow and succeed.
Don't miss out on this opportunity to take your startup to the next level. Download "Questions in the Meeting: From Startups to Venture Capitalists" today, and start preparing for your next meeting with a VC. With our ebook, you'll be well on your way to securing the funding that your business needs to succeed.
Marina Hatsopoulos. Entrepreneur, Director at Cynosure and Levitronix Technologies; Advisor, MIT Enterprise Forum Greece, The EGG accelerator, OK!Thess
Foundation structure of startup assessment is the startup lifecycle. we can Understand where a startup is in their lifecycle allows us to assess their progress. The startup life cycle is made of 6 stages of development, where each stage is made up of levels of sub stages.
Presentation based on Ben Holmes, Index Ventures Ventures http://www.slideshare.net/benholmes/venture-capital-an-entrepreneurs-manual
Created for EnterpriseTO
Instead of asking "Are you ready to fundraise", perhaps the better question is.. "Are you ready to grow?"
Learn about the basics of fundraising and whether you are ready.
Use the free tools and frameworks
Lean Canvas Plus (aka Fat Canvas) https://bit.ly/jdlfatcanvas
Fingerprint4Success Human Analytics: https://bit.ly/censusf4s
Now is the best time to start a company… Now what?Brian Kelly
It used to take years to launch a new software product. Now you can create, launch, and have paying customers getting value from your product in just a few months. This presentation explains why it's never been a better time to start a software company and what you need to consider to make it a reality.
Should you start with a side gig? Should you raise venture capital? How should you think about your cap table and employee options? What's your exit strategy? This presentation tackles these questions.
David Corcoran, cofounder at Third Rail Group, gave this talk at Do it Best Corp.'s annual Techapalooza on March 14, 2017.
Mårten Mickos' slides from April 2011
see also http://aaltoes.com/2011/04/marten-mickos-never-work-for-a-large-company-unless-youve-created-it-yourself/
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
2. What are the differences/surprises
for Polish Startups & Entrepreneurs?
WHY ME?
HOW TO PICK AN INVESTOR?
FOLLOW UP DISCUSSION:
Quick Introduction
What I am doing in Europe
Nine Factors Silicon Valley VC
Investors Look For
SILICON VALLEY FUNDING
Introduction
- Silicon Valley entrepreneurship is spreading globally
Structuring Polish-US investor companies
4. In a great market — a market with lots of
real potential customers — the market
pulls product out of the startup
The Market – Existing, Quantifiable, And Proven Ability To Execute In It
Conversely, in a terrible market, you
can have the best product in the world
and an absolutely killer team, and it
doesn't matter — you're going to fail.
9 Factors
1
5. Retention is the single most
important thing for growth.
Rapid Growth – 30% forward revenue/user growth per period
(per year for M&A or IPO) or per month/quarter (early stage)
Every single user on their 31st day after
registration, what percentage of them are
monthly active? Thirty-second day, thirty-
third day, thirty-fourth day. And that allows
you, with only 10,000 customers, to get a
real idea of what this curve is going to look
like for your product.
2
9 Factors
6. Scale – $1Bn+ market cap potential (a “unicorn”), with line of sight to
$1Bn+ in revenues
The Wall Street Journal and Dow Jones VentureSource are tracking
venture-backed private companies valued at $1 billion or more. See
how the club has expanded since the project began in January 2014.
The Billion Dollar Startup Club
9 Factors
3
7. One of the most common types of advice
we give at Y Combinator is to do things that
don't scale
Predictability – Recurring and visible revenue streams / user
growth (lifetime return customers)
The most common unscalable thing
founders have to do at the start is to recruit
users manually… founders ignore this path
because the absolute numbers seem so
small at first.
The mistake they make is to underestimate the power of
compound growth. We encourage every startup to measure
their progress by weekly growth rate. If you have 100 users,
you need to get 10 more next week to grow 10% a
week.” (that’s 14,000 users in Y1 and 2 million users in Y2)
9 Factors
4
8. Pricing before product – plan
distribution first; is your pricing
scalable?
Product and Customer Diversity – Multiple proven products,
features, customers, industry distribution channels, find customers
Uncontrolled distribution
leads to all manner of head-
ache and profit-bleeding.”.
It’s possible to niche market and
mass sell… Whether Apple or
Estee Lauder, sustainable high-
profit brands usually begin with
controlled distribution. Remember
that more customers isn’t the goal;
more sustained profit is.
5
9 Factors
9. Startup probabilities of success where cofounders don't have a long history are bad; when things go
wrong, there is no history to bind… A bad early hire can kill a company; in the early days the goal is
to not hire and stay small as long as possible… Be proud of how much can be done with fewer
employees; more equals high burn rate, complexity & slower decisions… Founders underestimate
how hard it is to recruit; the best employees have options; mission belief is the differentiator.
Proven Management Team – Track record managing growth increases
investor confidence in execution
The most important thing and the prime directive for
founders managing a startup is always keep momentum….
What happens when growth slows down is people start
getting unhappy and quitting and everything falls apart.
9 Factors
6
10. Globalization means copying things that
work… There is no innovation; you go
from building 1 to n typewriters (…)
Weak Competitive Landscape – Emerging leader taking share from
legacy vendors unable to respond (new and disruptive)
Technologization / technology, by contrast,
involves doing new things… True technology
companies—Palantir, SpaceX—involve going
from 0 to 1. This means going from
typewriters to word processors.
9 Factors
7
11. When you are starting a startup you need
revenue. You need validation. You need
users. You need commitment. Free trials
get you none of those things… You think
you've made progress but at the end of
the free trial you’re going to have to sell
them all over again
Strong Economic Model – Quantifiable and proven inputs for unit cost of
customer acquisition, revenues, margins and contributions over time
Two things you should be doing when you're
starting your company: talking to your users
(selling) or building your product. As a founder,
you have some unique advantages that make it
possible for you to be really, really good at sales:
passion for the product and your knowledge of the
industry and the problem that you're solving.
9 Factors
8
12. If you’re going to spend the best years of your
life working on something, you better make it
something you care about. The mission is not
the exact problem you’re going to solve, but
it’s the North Star. It’s telling you the direction
in which you should go.
The Elevator Pitch – One Sentence that Describes it All
9 Factors
Frequency, Density, and Pain have become three
variables that I now look at to analyze almost any problem.
Frequency: Does the problem you’re solving occur often?
Density: Do a lot of people face this problem?
Pain: Is the problem just an annoyance, or something you
absolutely must resolve?
Frequency, Density and Pain question can help you to
identify how often people have this problem? How many
people have this problem? Do they care?
9
14. How to Pick Investors?
One of the really cool things that's happening
right now is this massive proliferation of ways
to start a company and ways to get your
company funded
MORE OPTIONS THAN EVER TO GET A NEW COMPANY FUNDED:
— Aaron Harris, a partner at Y Combinator
15. HOW DOES AN EU COMPANY RAISE MONEY IN THE USA?
VC Funding not only route…
Set up a US affiliate which accepts US
funding (for legal reasons).
When there is a liquidation (sale, IPO),
the flow of funds need to be established
to pass to the international owners
(either directly via shares in US entity or
flow of funds).
Because of some commoditization of basic
entity set-up services in US, this can be
done for small amounts of money
The US company is the economic
and voting entity. The EU affiliate is
the R&D and operations entity.
$1,000 to set up entity $25,000 to
$50,000 to close financing deal.
Angel Funding, Syndicate Funding,
Crowdfunding viable
How to Pick Investors?
16. Team Leadership skills, operating knowhow
and industry knowledge are all tremendously
important. However, most entrepreneurs seem
to make their decisions more on perceived
brand, past successes and ability to intro.
How to Pick Investors?
17. Look at their portfolio list
Subtract out the extremely successful companies. a) they have no time for you
& b) everybody who has a super successful out-of-the-gate company loves
their VC because there was no conflict
Call the companies that are doing well but not yet household names. Ask
about the criteria above
More importantly, call the companies that struggled. You’ll learn most about
VCs when you find out how they handled themselves in tough situations. Make
sure to call 3-4 members of the management team to avoid one person’s bias
Past successes aren’t always relevant to future ones (web vs. mobile,
Traditional software vs. SaaS, SEO marketing vs. social marketing)
REFERENCE CHECK IS BEST WAY TO CHOOSE A VC:
How to Pick Investor?
18. Helpfulness, contacts are important…
Team Leadership? Most Important.
In almost every company there is executive management fighting…
Politics are a part of human nature and thus a part of all startups…
Knowing whom to back within an organization that is feuding and
when to back them is one of the hardest things about a VCs job.
And in the end must trust their own judgment..
How to Pick Investor?
REFERENCE CHECK IS BEST WAY TO CHOOSE A VC:
19. What are the differences / surprises for EU startups / entrepreneurs?
Additional Questions – I will get back to you
(1) LINKEDIN: Peter Szymanski
(2) EMAIL: Peter@SiliconValleyCounsel.com
Beta Test Silicon Valley Counsel online?
- Connect and I will send you a link… sneak peak…
Summary
22. Never been easier to start a technology company…
In the USA or anywhere else…
Why?... Decreasing costs, market factors…
On the other hand… Silicon Valley is very
expensive…
Global Trends
23. It’s become 2x more expensive to scale a startup in silicon
valley in 2015 versus 2009
The combined inflation of real estate and wage costs in
Silicon Valley have a dramatic impact of the operating
expenses of startups. This chart compares the op-ex
(excluding marketing spend) of a hypothetical 20 person
Series A startup and a hypothetical 80 person Series B
startup over the past five years in Silicon Valley. In both
cases, the op-ex figures double from $2.5M to $5.0M
and from $7.9M to $15.6M respectively.
Global Trends
26. Internet use is huge but growth slowing...
+9% in 2013
+11% in 2012
+16% in 2011...
Global Trends
27. More powerful
phones =
more potential for
powerful apps
Global Trends
Smartphone costs declining… 5% annually from 2008-2013…
28. Global Trends
Bandwidth costs declining… 27% annually from 1999-2013…
Declining cost /
Performance of
bandwidth enables faster
collection & transfer of
data to facilitate richer
connections / interactions
29. Global Trends
Compute costs declining 33% annually (1990-2013)
Decreasing cost /
performance curve
enables computational
power at core of
digital infrastructure….
30. What about the global economy and technology startups?
2014 Technology IPOs US
Dollar Volume 73% Below
1999 Peak Levels (2014)
Global Trends
31. What about the Silicon Valley funding bubble?
Global Trends
Maybe in the
future… Today
we are just in a
boom!