Founders Institute Hosts Rami AlKarmi for a Keynote on BackToStartupBasics and the secrets of launching successful ventures @ King Hussein Business Park / GROW, as part of their Startup Founder 101 series Date: 2015-09-30, 06:30 PM Location: The Tank – Umniah – King Hussein Business Park (KHBP), Amman If you are curious about what it is like to run a successful startup, then join us for Startup Founder 101. Hear candid talks by successful entrepreneurs, sharing best practices, strategies and mistakes to avoid from those who have done it before. How do you get started on your entrepreneurial journey? How do you find talented people to join your team? What is it really like to build a successful company?

1. 1
Back to Startup Basics
& Secrets of launching
Successful Ventures
Rami Al-Karmi
alkarmi
ramialkarmi
#BacktoStartupBasics

3. 3
Inside
GEMINI

4. 4
Feel Free to reach out@alkarmi
Mentor & Limited Partner
Executive Chairman
Octonius
Executive Vice Chairman

5. ootprintF
start
the program
VENTURE LAB
FastForward

7. Attending @FoundingJO
#BackToStartupBasics Session
w/ @alkarmi @KHBPJO

9. Entrepreneur ?

12. 12
Entrepreneurship Ecosystem
Entrepreneurs

13. 13
Entrepreneurship Ecosystem
Entrepreneurs
Venture Capital
Investors

14. 14
Entrepreneurship Ecosystem
Entrepreneurs
Venture Capital
Investors
Corporations
Potential acquirers
Strategic investors

15. 15
Entrepreneurship Ecosystem
Entrepreneurs
Venture Capital
Investors
Corporations
Potential acquirers
Strategic investors
Universities
Professions
Management
Government

16. 16
Entrepreneurship Ecosystem
Entrepreneurs
Venture Capital
Investors
Corporations
Potential acquirers
Strategic investors
Universities
Professions
Management
Government
Public Stock
Market
Pools of
Private
Capital

38. Runway ?

39. 39
Lifecycle of an Entrepreneur
Idea Formation Growth Exit

40. 40

42. 42
Business
Schools teach
OUTDATED
Startup
tools

43. 43
“Valley of Death”
Research Grants Development
Grants
(eg SBIR)
Friends, Family, &
Founders
($5-$50k)
Angel
Investors
($50-$500k)
Funding
Early Stage
Venture Capital
($500k-$2M+)
Venture Capital
($2M-$50M)
Private Equity,
Project Financing
($2M-$50M)
IPO, Merger,
or Acquisition
($2M-$50M)
Stage of
Venture
Development
Idea
Basic Research
Applied
Research
Proof of
Concept
Target
Market
Business
Plan
Engineering
Prototypes
Supplier
Contracts
Product
Introduction
Revenue
Growth
Production
Prototypes
Distribution
Contracts
Working
Prototypes
Founding
Team
Net
Cash
Flow
➡ > 95% of startups fail
➡ VCs fund 1% of submitted biz plans

44. 44
It’s all about execution of a predefined
plan
The Leading Cause of Startup Death
Product
Dev.
2
Alpha/Bet
a Test
3
Launch
Product
4
Where
Customer?
Pitch
Investor
1
Customer
Dev.
5
Inside the building

45. 45
No Business Plan Survives
First Contact With Customers
Startups/New Ventures Are Not Smaller
Versions of Existing Companies
Startups/New Ventures
need their own tools

47. 47
From Yesterday's Outdated Tools
To ...
Inside the building

48. Remove the fluff

49. 49
Agile
Dev.
Customer
Dev.
Biz Model
Canvas
... Today’s Tools LeanStartup
Outside the building

50. 50
Business Model Canvas

51. Customer Development
The Search For the Business Model
Company
Building
Customer
Discovery
Customer
Validation
Customer
Creation
Pivot

52. Out of the building !
GET

55. 55
Top 20 Reasons

56. 56
#1 – Building a solution
looking for a problem,
i.e., not targeting a “market need”
#BackToStartupBasics42%

57. 57
#2 – Ran out of
cash
29% #BackToStartupBasics

58. 58
#3 – Not the right
team
23% #BackToStartupBasics

59. 59
#4 – Get
outcompeted
19% #BackToStartupBasics

60. 60
#5 – Pricing/Cost
Issues
18% #BackToStartupBasics

61. 61
#6 – A “User Un-
Friendly” Product
17% #BackToStartupBasics

62. 62
#7 – I got this
product. Now I just
need a business
model.
17% #BackToStartupBasics

63. 63
#8 – Poor Marketing
14% #BackToStartupBasics

64. 64
#9 – Being inflexible
and not actively
seeking or using
customer feedback
14% #BackToStartupBasics

65. 65
#10 – Release
product at the wrong
time
13% #BackToStartupBasics

66. 66
#11 – Lose Focus
13% #BackToStartupBasics

67. 67
#12 – Disharmony
with Investors/Co-
founders
13% #BackToStartupBasics

68. 68
#13 Pivot Gone Bad
10% #BackToStartupBasics

69. 69
#14 – Lack Passion
and Domain
Expertise
9% #BackToStartupBasics

70. 70
#15 – Location,
Location, Location
9% #BackToStartupBasics

71. 71
#16 – No Financing
or Interested
Investors
8% #BackToStartupBasics

72. 72
#17 – Legal
Challenges
8% #BackToStartupBasics

73. 73
#18 – Do not use
your connections or
network
8% #BackToStartupBasics

74. 74
#19 – Burn Out
8% #BackToStartupBasics

75. 75
#20 – Failure to pivot
when necessary
7% #BackToStartupBasics

76. 76
#StartupBasics

78. What’s the VC’s Motivation?

80. What’s Under the Hood?

85. Money Going In: Capital Contributions
G
P
GP
GP
GP
GP
GP
GP
GPLP LPLP
LP
1% of
total
99% of
total
LP
LP LP

86. Money Coming Out: Profit Sharing
G
P
GP
GP
GP
GP
GP
GP
GP
20% of
total
80% of
total
LP
LP
LP
LP LP
LP
LP

87. Got Crunched Yet?
Source: Bullpen Capital
VENTURE CAPTIAL SERIES A CRUNCH

88. Startup Investor Ecosystem
Angels &
Incubators
($0-10M)
“Micro-VC” Funds
($10-100M)
“Big” VC Funds
($100-500M)
“Mega” VC Funds
(>$500M)
TrueFirst Round
A16ZAtomico
Y-Combinator
TechStars
SoftTech (Clavier)
Felicis (Senkut)
SV Angel (Conway)
SequoiaGreylock
Union Square
Floodgate (Maples)
Foundry
Incubation
Seed
Series A
Series B
Series C+
Bootstrap, KickStarter,
Crowdfunding

89. Staying in Business = Raising More Funds
Year1
Year3-4
Each Fund Life = 10 Years
3-4 Yrs = Seed
NewCos
6-7 Yrs = Harvest
& Do Followons
Must raise new funds to keep
investing in NewCos; once new
fund is raised, NewCo funding
will come from it
Fund III
($150M)
Fund II ($125M)
Fund I ($100M)
After 6-7 years in business, VC
will have 3+ concurrent, active
funds at any one time; only
one, however, will be funding
NewCos
Year6-7

92. 92

93. 93

94. 94

95. 95

96. 96

97. 97

99. 9
9
Back to Startup Basics
& Secrets of launching
Successful Ventures
Rami Al-Karmi
alkarmi
ramialkarmi
#BacktoStartupBasics