This document summarizes advice for starting, growing, and exiting a startup company. It discusses the importance of team composition, validating the business idea with customers, and bootstrapping the company through initial funding. When growing the company, it recommends balancing process with a startup culture and planning for expansion. Regarding exiting, it advises determining an exit strategy from the beginning, positioning the company attractively for acquisition, and hiring experienced advisors for negotiations. Key challenges addressed are persevering despite location and not giving up too early or too late on the business.

1. the joys of living
THE STARTUP LIFE
http://www.flickr.com/photos/rhinoneal/3907394091

2. SO WHO IS THIS GUY?
•
STARTUP FOUNDER
•
EARLY STAGE ANGEL INVESTOR
•
MENTOR (PROPEL/PLANET HATCH)
•
I AM A RUNNER

3. TOPICS
1. STARTING
2. GROWING
3. EXITING
http://www.flickr.com/photos/gianpierre_soto/5505817770/sizes/l/in/photostream/

4. team | validation | funding
STARTING
http://www.flickr.com/photos/cedmars/6816878644/

5. Team
Make wise choices, including your co-founders
http://cdn.api.warnerbros.com/WB_Portal_3.0/imageRequest?rendition=SmallThumbnail&contentId=087194

6. Founders
Committed & a fire in their belly.
Ideal Number? Well: 1 < n ≥ 3
Core Team
Never settle for anything less than A+
Hire for culture fit & functional skills
Be slow to hire & quick to fire
Mentors
Subject matter expertise
Available when needed
http://www.flickr.com/photos/syume/4400844746/

7. You will wake up in a puddle of
your own sweat realizing you
are completely *****
http://sleepdisorders.dolyan.com/30-great-tips-what-can-help-me-sleep/

8. Validation
Your idea solves a problem
customers are willing to pay
money for
http://wallpapergravity.com/Image.php?ID=382174

9. Validation
Ensures you’re not heading
down the wrong path.

10. Validation:
If you don’t do it, you’re
burning cash by guessing
http://www.ipadwallpaperhd.com/fire_dollar-wallpapers.html

11. Funding
The art of bootstrapping
http://www.flickr.com/photos/trippinlarry/5987691227/

12. Bootstrapping
retain control | no dilution
http://www.flickr.com/photos/tfpc/6139591124/

13. Art of Bootstrapping
•
•
•
•
Get lean – personally & professionally
Explore work for equity options with core team
What’s your Obama-O strategy?
Leverage every dollar you have, or can get
http://www.flickr.com/photos/h-k-d/4490192739/

14. Leveraging Money
Lots of non-dilutive loan and grant programs to
support research & development, hiring, and
export market development.
http://farm1.staticflickr.com/93/281790898_c3240c02c4_o_d.jpg

15. Angel / Seed
Once you have a
validation, prototype, and
ideally paying customers
http://upload.wikimedia.org/wikipedia/commons/thumb/8/87/WinonaSavingsBankVault.JPG/1280px-WinonaSavingsBankVault.JPG

16. Failure is from a lack of paying
customers, not funding
http://www.flickr.com/photos/minusbaby/3403178463/

17. process | planning | advisors
GROWING
http://www.flickr.com/photos/evoo73/6930638399/

18. Process
Important, but balance that ‘startup’
culture
Above all else, ensure you have a
culture of employee accountability
http://farm1.staticflickr.com/91/269389847_e32f708b58_b_d.jpg

19. Planning
When starting, doing is more
important than planning.
At some point you will need
some ‘planning’ for growth
http://www.flickr.com/photos/jurvetson/21470089/

20. Advisors
Important to you as a founder, and to your company

21. strategy | positioning | execution
EXITING
http://www.flickr.com/photos/javi_velazquez/6908063653/

22. Strategy
Are you an entrepreneur, or empire builder?
http://commons.wikimedia.org/wiki/File:Maccari-Cicero.jpg

23. Lean Startup + Early Exit
a winning combination
http://www.flickr.com/photos/kellbailey/1805414461/

24. Which path is better?
reducing time to exit = reducing risk + enhances IRR
Mezzanine
(own 10%)
Series B
(own 25%)
IPO / Exit
$150M at 10%
Series A
(own 40%)
Traction
Prove
Model
Product /
Market Fit
Raise Angel
(own 35%)
Validation
3 Year
Exit$25M at
65%
2 to 3 years
5 to 7 years
Source: “Exit Strategy for Startups”, VentureArchetypes, LLC

25. Strategy
skate to where the puck is going to be
wrap yourself around acquirer’s axle
Credit: Sporting News Archive

26. Exit Strategy
Have your “end game” exit
strategy on Day #1
http://www.flickr.com/photos/uckhet/268319752/

27. Positioning
•
•
•
Tell a good story, with passion
Specifics on potential of “together”
Vision of “what could be” in the future
http://www.flickr.com/photos/beaconradio/5911999506/

28. Negotiation
•
•
•
Hire A+ finance & legal advisors
Never piecemeal
Clean house before diligence
http://www.gazprom.com/about/history/events/italy40/

29. Challenges
Starting a company from
here?
http://www.flickr.com/photos/adamhenning/45704086/sizes/l/in/photostream/

30. There Are None!
Stop making excuses: regardless of location, it isn’t easy
http://www.flickr.com/photos/mona_q/3595738923/

31. TOPICS
1. STARTING
2. GROWING
3. EXITING
http://www.flickr.com/photos/gianpierre_soto/5505817770/sizes/l/in/photostream/

32. Most startups fail because
the founders give up…
http://www.flickr.com/photos/kcnickerson/1008563510/

33. Don’t give up too
early, but…
http://farm4.staticflickr.com/3747/9945353096_f2391c8030_b_d.jpg

34. http://www.smallbiztechnology.com/archive/2012/07/learning-from-failure.html/

35. Recommended Reading
Lean Startup | Lean Analytics | Running Lean

36. Contact Me:
E-Mail: jthompson@about.me
Twitter: @thomjeff
Some of the photographs in this presentation were retrieved from Flickr and made available under a
Creative Commons license. Please refer to each photograph for a link to the image source.