1) A startup is a newly created company that is working to develop and validate a scalable business model. Startups differ from traditional small businesses in that they have high growth potential but also face high uncertainty. 2) The most important assets of a startup are its founding team and business model. The business model describes how the organization creates, delivers, and captures value for customers. 3) Examples of common business models include direct sales, freemium, subscription, and razorblade models. A successful entrepreneur focuses on delivering value to customers rather than technology and executes the business model through planning and pivoting when needed.

1. STARTUP
ENTREPENEURSHIP AND
VENTURE CAPITAL
Ville Simola
M.Sc (Econ.)

2. About me

3. BUSINESS IDEAS AND
BUSINESS MODELS

4. What is a startup?

5. Definition #1
“A startup company or startup is a
company with a limited operating
history. These companies, generally
newly created, are in a phase of
development and research for
markets. “
- Wikipedia

6. Definition #2
“A startup is NOT every new business venture
(actually, it is but this is not the way we use the
term anymore). It is a new tech
venture, internet
related mostly, that has the
potential of rapid growth
through servicing new market segments
and/or offering new product/services”
- Quote taken from Quora.com

7. Definition #3
”A startup is the
organization used to
search for a scalable
business model”
– Steve Blank

8. How startups are
different than
traditional businesses?

9. Comparison #1
(Steve Blank)
Small businesses Scalable startup
• Business model found • Designed to grow big
• Profitable business • Huge uncertainty
• Existing team • Typically needs risk
• Not all the businesses capital
of internet age are • These companies are
”scalable startups” the real startups

10. Comparison #2
(Steve Blank)
Traditional accounting Startup metrics
• Balance sheet • Customer acquisition
• Cash flow statement costs
• Income statement • Customer lifetime value
• Monthly burn rate

11. Comparison #3
(Steve Blank)
Business plan Business model
• Static-document • Can be iterated quickly
• ”No business plan • Shows how company
survises the first creates, delivers and
customer contact” captures value
• Focus on planning not • Focus on execution and
execution how to make money

12. How to find a business
idea?

13. Idea #1
Start solving a real
problem

14. Idea #2
Problems can be found
from everyday
life, from hobbies or
from work life

15. Idea #3
After finding the idea –
sleep day or two to
realize whether it’s
really a good one

16. Facts about
business ideas

17. Idea fact #1
Importance is usually
overemphasized

18. Idea fact #2
Will pivot during the
journey

19. Idea fact #3
Is something that
should not be hidden

20. Facts about the
founding team

21. Team #1
Is the most important
asset you have

22. Team #2
Should combine a
different skillset

23. Team #3
Needs to have high and
passionate vision

24. What is a business
model?

25. Business model #1
Might sound like a new
concept but is actually
not

26. Business model #2
Describes how
organization creates,
delivers and captures
value

27. Business model #3
Business model is not
just about how do you
make money

28. Examples of business
models

29. Business model example #1
Direct sales model:
marketing and selling
products to a customer
directly

30. Business model example #2
Freemium model:
Giving the basic version
for free but charging
for premium version

31. Business model example #3
Subscription model:
selling periodic use or
access to a product or
a service

32. Business model example #4
Razorblade model:
Item is sold cheap to
increase sales of a
complementary
product

33. Business model canvas

35. Business model canvas:
FIFA Soccer World Cup
Example

37. What it takes be a
successful
entrepeneur?

38. Success #1
Technology is nice but
it’s all about the value

39. Success #2
Planning is good but
execution wins the war

40. Success #3
Great companies are
not born they are built

41. Recommended readings

42. Recommended links
springwise.com
steveblank.com
businessmodelcreation.com
leancanvas.com
arcticstartup.com

43. My contacts
Ville Simola
www.smolaholic.com
@smolaholic
ville.m.simola@gmail.com