This presentation explores new ways of looking at failure in Startups. Specifically concept of "unfail" or "unfailure" is presented and explained. Lean Startup elements are connected with a failure scenarios and lessons learned

1. @SDStartupWeek

2. Thank You 2019 Sponsors!

3. Startup
Failure
Is Not What
You Think It Is
Sergey L. Sundukovskiy, Ph.D.

4. History of Failure
Did Aliens Build Pyramids?
Testing (Success)Testing (Failed)Testing (Failed)

5. Failure
“I’ve missed more than 9,000 shots in
my career. I’ve lost almost 300 games.
26 times I’ve been trusted to take the
game winning shot and missed. I’ve
failed over and over and over again in
my life, and that is why I succeed.”
-Michael Jordan

6. Failure
“Failure should be our teacher, not our
undertaker. Failure is delay, not defeat.
It is a temporary detour, not a dead
end. Failure is something we can avoid
only by saying nothing, doing nothing,
and being nothing.”
-Denis Waitley

7. Sergey L. Sundukovskiy
Raken, CTO/CPO & Founder
Companies: Capital One, PushPoint, Cinsay, LowerMyBills, DIRECTV, CBW
Interests: Entrepreneur, Speaker, Mentor, Advisor
Education: BA CS, MS IT, PH.D. Business
Before Co-Founding Raken, Dr. Sergey Sundukovskiy served in capacities of Chief
Technology Officer, Chief Information Officer, Chief Marketing Officer and Chief Product
Officer. Sergey is a serial entrepreneur co-founding multiple successful SaaS B2B
and B2C Startups. Last Startup co-founded by Sergey was acquired by Capital One in
2014.
Sergey often mentors first-time founders and advises early stage Startups with emphasis
on Product Development, Product Market Testing, Public Relations, Product Marketing,
Team Building, Customer Success and Organizational Management.
Introduction
Background &

8. Complete Failure
Lights Out
Failure
Types

9. Partial Failure
Acquihires
Failure
Types

10. Failure On The
Way To Success
Lose The Battles Win The War
Failure
Types

11. Why Is Failure
So Common?
Reasons
For Failure
Failing is
SO HOT
right now!

12. Beginning of the
Startup Journey
Remarkable
Similarity

13. Starting
Point
• No Well Defined Problem
• No Addressable Market
• No Effective Team
• No Customers
• No Product
• No Money
Startup Inception

14. End of the
Startup Journey
Remarkable
Similarity
WOAH…
Deja Vu!

15. Building a Startup
An Exercise In Unfailure
Startup
Building

16. • Worrying About Too Many Things
Wrong Way To Unfail
• Unclear Vision
• No Trip Wires
• Giving Up Too Soon
Unfailure
Strategies

17. “...if I could have seen the shore, I
would have made it”
Giving Up
Too Soon

18. Do Not Try To Outrun A Shark,
Just Your Buddy
Nearest
Danger

19. Change Of Direction
• High Churn
• High Acquisition Cost
• Low NPS
Common
Tripwires

20. • Have Big Targets To Hit
Right Way To Unfail
• Unfail Most Important Things First
• Be Ready to Get Lucky
• Clear Measuring Strategy
Unfailure
Strategies

21. Measurement
Strategy
Shadows on the Wall

22. Bullets
Before
Cannonballs
“I find your lack of testing
disturbing!”

23. Measure of Luck
Game
Theory

24. Jim Collins
Return On Luck
Get
Lucky

25. Difficult Failure Recovery
• Founding Team
• Operational MO Aka Process
• Culture
• Product Focus
First
Things
First

26. First Who, Then
What, Then How
Unfail
Founders

27. • Complementary Skillset
• Worked Together Before
• Similar Work Ethic
• Similar Commitment Level
• Similar Conflict Resolution Style
• Can Disagree and Commit
Co-Founder
Unfail
Criteria Co-Founder Match Parameters

28. BAD
NOT GOOD
GOOD
Co-Founder
Unfail
Criteria(cont.)

29. Get the Right People
On the Bus
Unfail
Team

30. Unfail Startup
Founding Team
We’ll Hit
Something,
Eventually.
Founding
Team

31. Team
Dynamics
Malcolm Gladwell
Weak vs. Strong Link Games

32. • Superstar Driven = Invest In Superstars
• Very Few Touches
• Very Little Collaboration
• Short Execution Cycle
• High Scoring
• Example = Basketball
Strong Link Attributes
Strong Link
Game
Attributes

33. • Weak Link Avoidance = Invest In Upgrading Weak
Links
• Lots of Pivots
• Low Scoring
• Long Execution Cycle
• Lots of Collaboration
• Example = Soccer
Weak Link Attributes
Weak Link
Game
Attributes

34. What Kind
of Game
Is Startups?

35. • Constant Failure
• Must Have the Right Tools
• Impossible to Get Lucky and Win
• Team Gets It Done
• It Is Even More About Execution
• It Is All About Micro-Pivots
Uncanny Similarity
What Do
Startup Building
And Golf Have In
Common?

36. • Pre-Seed Round
• Success Depends on Strong Execution from a Few
Individuals
• Very Few People = Very Few Touch Points
• Very Short Path to Death = Very Short Execution
Cycle
• Diverse Knowledge Set = Need to Wear Many Hats
EarlyStageStartups-StrongLinkGame
Early Stage
Startups

37. T-Shape
Hire
Early Stage
Startup
Hires

38. • Post-Seed Round
• Success Depends on Many Team Members
• More People = More Touch Points
• Creeping Death Is a Big Concern = Culture
Attenuation
• More Specialized Knowledge Set
Late State Startups - Weak Link Game
Late Stage
Startups

39. Reverse T-Shape
Hire
Late Stage
Startup
Hires

40. Micro-Pivots After
Many Failures In…
Road to
Success

41. You Win Or
Your Learn
Failing
Forward

42. THANK YOU!
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