Presentation for Syd Uni class on Entrepreneurship, startup learnings, Australian scene, StartMate experience and using Business Model Canvas as an input to Business Plan, resource allocation and focus.

2. Personal experience from startups OEM Channel Enterprise Consumer EmU Tech 2000 2003 2004 2006 2009 High Touch Low Touch 2011

4. (Ye olde) Funding Model for: Web 1.0, Enterprise S/W, Deep IP, Rockstar Founders david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz Australia: Not a great track record here X

5. Lean but not starving - revenue is a the best deodorant BEWARE: Of Market Changes, Slow Execution, Too Few Customers … a common “underfunded aussie story”. david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz X

6. Ye Olde Startup Funding Model (too early to talk about but I know your thinking about it) Market Product Team @djinoz [email_address] Team Market Product

7. New, New Angel Funding Model @djinoz [email_address] Naval AngelList

8. What I learned from OBSERVATION Successful Applicants had proof they could DO technically and beautifully LESSON Hack, hack, hack now – its like sit-ups @djinoz [email_address]

9. What I learned… OBSERVATION Successful Applicants had >1 founder LESSON1 90 day stress environment – single founders are possibly but it’s a lonely path (I’ve been there) LESSON2 Start now finding co-founder(s) – you don’t want a divorce mid-way – founder vesting @djinoz [email_address]

10. What I learned… OBSERVATION Traction: If you are not launched in 90 days you are too slow LESSON 1 Founder Ratio: >2Technical for 1Non-Technical LESSON 2 “ Learning is the unit of progress” @djinoz [email_address]

11. Paper MVP vs Hacked MVP david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz The jury is still out but hacked MVP gives more accurate CustDev feedback

12. Focus or Fail If you have limited resources and cash reserves then focus is your most valuable discipline – if your hypothesis wrong at least you “fail fast” david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz (picture credit: Mick Liubinskas/Pollenizer) Don’t let Perfect be the Enemy of the Good

13. The Business Model drives the Business Plan david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz Product Focus: Core Utility Company Focus: Right Business Model The “right” business model takes iteration. But this BM framework prescribes what activities you SHOULD focus on (the business plan being covered by Ryan Junee)

14. david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz

15. The Business Model Canvas david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz

16. david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz

17. david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz

18. Drill-in Example 1 david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz Key Partners Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? motivations for partnerships: Optimization and economy (outsource non-core activities) Reduction of risk and uncertainty Acquisition of particular resources and activities

19. Drill-in Example 2 david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz Cost Structure What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? is your business more: Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven ( focused on value creation, premium value proposition) sample characteristics: Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope

20. david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz

21. david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz I’ve removed the ThreatMetrix canvas for Corp confidentiality reasons, students of ELEC5701 can email for those if needed. - dj

24. Questions?