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The Art of Start in Jordan
The document is centered around a workshop on startup development held in Jordan, discussing the lifecycle of a startup, including idea validation, business planning, execution, and funding. It emphasizes the importance of understanding market needs, forming a strong team, and utilizing various funding sources such as angel investors and venture capital. Additionally, it lists various resources, programs, and support initiatives available for startups in the region.
The Art of Start in Jordan
- 1. The Art ofStart in Jordan IEEE workshop 7 Oct 2012 Ahmad Takatkah & Muhammad Arrabi
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- 5. What’s common betweenthese companies?
- 6. Why Are YouHere?
- 7. Lifecycle of aStartup Idea • Evenings, friends Business Plan • Evenings • Find mentor Customer • Self funded Validation • Evening work Solution • Seed funding Validation • Total focus Scale • VC funding • A small company Big Comp • IPO/Acquisition any
- 8. Contents • Introduction • Idea • Business Plan • Execution • Investment • Team • Resources
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- 10. The Market –it’s all about the market • Is the market growing? • Do you understand the market? Experience in it?
- 11. Technical vs. Business •You must address customer pains – paying customers preferably
- 12. Question for theAudience • Let’s assume you work as a Kitchen Designer. • A Lady comes to you, and asks you to design her kitchen. • What would be your first question to her?
- 13. Who is yourtarget customer? • B2C • B2B • B2E (enterprise) • Global vs. Regional vs. Local
- 14. 5 Forces ofCompetition Customers (Bargain Power) Substitute Market Barrier to Entry Products Competitors Suppliers (Bargain Power)
- 15. Blue vs. RedOcean
- 16. Blue vs. RedOcean (examples: iPad, AirBnB, 99Designs, etc…)
- 17. Too Many IdeasProblem
- 18. Contents • Introduction • Idea • Business Plan • Execution • Investment • Team • Resources
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- 21. Business Model Canvas •http://www.businessmodelgeneration.com/downloa ds/business_model_canvas_poster.pdf
- 22. Let’s Take anIdea and Work with It!
- 23. Partners & Operations Customers 1 Value 3 2 Proposition Costs < Revenue
- 24. 1- Value Proposition •What value do you provide to customers? • Which of their problems are you solving? • What need are you satisfying? • What services/products are you offering to what target group?
- 25. 2- Customers • CustomerSegments – For whom are you creating value – Who are your most important customers? • Customer Relationships • Channels • Revenue Streams
- 26. 3- Partners &Operations • Key Partners • Key Activities – Hire people, pay salaries – Offer services, cost on you • Key Resources • Cost Structure – How cost grows as activities grow
- 27. Is it aprofitable business? Partners & Operations Customers 1 Value 3 2 Proposition Costs < Revenue
- 28. Contents • Introduction • Idea • Business Plan • Execution • Investment • Team • Resources
- 29. Contents • Introduction • Idea • Business Plan • Execution • Investment • Team • Resources
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- 31. Fail Fast &Fail Often • Any idea or product can fail for many reasons • Many of these reasons you can test early on • The main goal of a startup in the beginning is to perform these tests • If a test fails this means you have to change the idea a bit (enhancing) or a lot (pivoting). • Testing your idea reduces risk, and thus allows you to get more funding.
- 32. Validate Customers Need •Test & verify that customers really have this need – want to do this
- 33. Validate Initial Solution •Try the item with customers. Get feedback. Enhance. Iterate very quickly. Verify that are welling to pay for it (if it will not be free).
- 34. Validate Ability toScale • This is usually late stage for startup • Once you need to scale up, certain practices & operations will have to be replaced • But will these work as good as previously? Verify this. As you verify more, you can expect to reduce risk, and grow business.
- 35. Now you area big company • (and this is a different presentation) • Recommended reading about big companies:
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- 38. Investment Stages –like Car Gears
- 39. Lifecycle of aStartup Idea • Evenings, frie nds Business Plan • Evenings • Find mentor Customer • Self funded Validation • Evening work Solution • Seed funding Validation • Total focus Scale • VC funding • A small company Big Comp • IPO/Acquisition any
- 40. There are manySources of Capital • Self Finance • Friends and family • Crowdfunding • Bootstrapping, • Competitions, • Incubators, • Grants, and Supporting Organizations • Strategic Partners • Customers and suppliers • Banks, Islamic Banks • Angels Investors • Venture Capital Funds, • Corporate Venture Funds and corporate incubators (Spinoffs) • Private Equity Funds • IPO
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- 42. Angel Investors • Angels? • they understand your situation, • they're a source of contacts and advice. • New concepts • Exit Strategy • Valuation • Angel Groups/clubs. • How to find angels? – Personal introductions • Deal terms • Don't believe it till you get the check (never stop looking for angels)
- 43. Venture Capital • Professionalfirms, they look for investments • They invest in around 20 companies every round (3-7) years • An investment should promise around 10x return • Usually only 1 or 2 companies succeed really big (100x), and 5-6 die, and the others break even of bring some money. • Expect a long process, detailed, with lots of information requests.
- 44. Contents • Introduction • Idea • Business Plan • Execution • Investment • Team • Resources
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- 46. Team • Choose thesuper team – This is the team that will take your revolutionary idea to the world. • Equity over time – Let’s say you are 2 people – Give each 50% of company, vesting over 4 years! – This means, after first year, each partner gets ¼ of their stock (e.g. %12.5). After second, another ¼ vests. – If a partner leaves early, he loses any unvested stock. • Pay with Equity to Lawyers, Accountants, etc. – Starting to happen in Jordan
- 47. Contents • Introduction • Idea • Business Plan • Execution • Investment • Team • Resources
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- 49. Common Internet BusinessModels • advertising • ecommerce • lead generation • sponsorships • freemium • in-app purchase • B2B Products, Service, & Subscription
- 50. Types of Startups • Copier • Exploiter • Niche leader • Franchiser / Distributor • Business Innovator • Technology Innovator • (lifestyle business vs. high-growth business)
- 51. VC’s in region • N2V • IV Holdings • Dash Ventures • Humming Bird Ventures • Ideavelopers • MENA Ventures • MEVP • Wamda (Abraaj Capital) • Sinbad Ventures • STC Ventures • MBC Ventures
- 52. Incubators in region • Oasis500 (www.Oasis500.com) • iPark (www.ipark.jo) • Business Innovation Center (www.bic.jo) • Several universities have them (JUST, Yarmouk, etc.) • Outside Jordan – Flat 6 Labs (Cairo) – Bader (Riyadh) – Tahrir2 (Alexandria) – SeedStartup (Dubai) – Seequnce (Beirut) – Tenmou (Bahrain) – 360 Accelerator (Dubai)
- 53. Startup Support Programsin Jordan • BDC Course: http://www.empretecjordan.org/ • Microsoft BizSpark – free software (work $200k) • AmmanTT.com – free lectures & networking • Bedaya.jo – Jordanian Angel Network • Development for Employment Fund def.gov.jo • www.EndeavorJordan.org mentorship • www.Injaz.org.jo training • www.InjazAlarab.org training • irada.org.jo Support for startups • www.Jedco.gov.jo EU Support and funding • www.kafd.jo King Abdullah II Fund • www.MigrateMENA.com consulting services • www.MITarabcompetition.com Business Plan Competition • www.qrce.org Queen Rania Center for Entrepreneurship • www.yea.com.jo Young Entrepreneurs Association • www.intaj.net INT@J Association of Computer Companies
- 54. Books & Education • Lean Startup by Eric Ries • Startup Owner’s Manual by Steve Blank • Business Model Generation by multiple authors • Anything you Want by Derek Sivers • http://www.success.ae/ • MIT Entrepreneurship courses: http://ocw.mit.edu/courses/entrepreneurship/
- 55. Thanks for invitingus Ahmad Takatkah Muhammad Arrabi Managing Partner, Sinbad Ventures Chief of Staff, N2V.com www.SinbadTheVC.com www.MuhammadArrabi.com @SinbadTheVC @MRArrabi
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Editor's Notes
- #4 Takatkah to fill
- #5 Takatkah to fill
- #6 Takatkah to fill
- #7 Arrabi to fill
- #12 Arrabi to fill
- #13 Arrabi to fill
- #15 Arrabi to fill
- #16 Arrabi to fill
- #17 Takatkah to fill
- #18 Takatkah to fill
- #19 Too Many Ideas Syndrome Consider:Time Passion (the Red Apple)FocusQualityInstead: Pivot
- #21 Takatkah to fill this section and present it – your slides here.Preferably if you can just fill the existing slides here (place holders) without creating more.Goal is to fill One Business Model Canvas one section at a time (idea from audience).
- #32 This section to be filled by Arrabi, and presented mostly by arrabi
- #34 http://dl.dropbox.com/u/27532820/original_screencast.html
- #35 http://www.youtube.com/watch?v=YTy1H60NJL4
- #38 Takatkah – your section. Please review.I’m not happy with current order of slides. Feel free to add/remove slides. Keep them overview level.
- #39 You have to understand how the investor thinksYou think it’s fundingBut for the VC, it\\s investment. He wants return.
- #41 Funding should not be a life cycle, it is needed:There, Then, and for a specific purpose.Some companies grow organically, some may not.Funding is not a preference, it is a business need.Legitimate need: Supporting businessAccelerating growthIllegitimate need:Salvage (Rescue)Unplanned growthFunding is not free, it comes at a price and with obligations and liabilities.
- #47 Arrabi can present this section.It’s done – just few points to mention.
- #50 Takatkah – feel free to add slides that you think are useful resources.
- #52 Takatkah – feel free to move this somewhere else.
- #53 Takatkah – please add to this slide
- #54 Takatkah – please add to this slide
- #55 Arrabi to fill this one
- #56 Takatkah – please add what you have.Arrabi will add few points later
- #58 10 intro30 idea/canvas lean startup – validation)20 investment (& partners)20 trends (local & global)