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DON’TBEAF***INGWANTREPRENEUR
VITALYM.GOLOMB
@VITALYG JUNE3rd,2014
K E E N P R I N T. C O M
+Investor
C E E D . V C
corporate
people
startup
people
P experts in one area
P years climbing ladder
P stable lifestyle
P real responsibiliti...
so what THE F***
is a startup?
A STARTUP IS...
an experiment in search
of a business model- steve blank
SCALABLE

STARTUP
transition company
business model found
product/market fit
repeatable sales model
managers hired
break-e...
A STARTUP IS A COMPANY
THAT IS CONFUSED ABOUT:
1. WHAT ITS PRODUCT IS,
2. WHO ITS CUSTOMERS ARE,
3. HOW TO MAKE MONEY
- DA...
“A STARTUP’s default
state is #failure. as a
founder, you have to
work to unfail it.”- VITALY M. GOLOMB
a little distraction
THE Ballmer peak
why would you want to
start a company?
get good grades
go to a good college
get in a good company
get regular promotions
retire, play golf, die
normal career
startup career
-if successful-
what people think
it looks like
what it really
looks like
entrepreneurship
is a mental disorder
but it takes a
little crazy...
to change
the world
so, why are youdoing it?
for the
money?
for the IPO money?
50
100
150
200
250
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
number of tech
ipos sin...
funded startup
success rate
30% fail
30%
unprofitable
30%
somewhat
profitable
10% big
success
by the way...
#failure in
startups is
overgloried
failure is for
losers
- Beck
1st time founder 18%
repeat failed founder 20%
repeat successful founder 30%
the odds are against you
you’ll get acquired if
you are lucky and good
freedom?
normal job:
one boss
startup:
every user
is your boss
have a family?
they will suffer
“as a startup ceo, i slept
like a baby. i woke up
every 2 hours and cried.”
- ben horowitz
feeling
defeated
yet?
founder and team morale
jess lee - “why startup founders are always unhappy”
good news:
you can improve
your chances
find a problem
you can’t live
without
solving
don’t build technology looking
for a problem to solve
solve a painful problem
what is all this lean bullshit?
lean = quick iterations
more chances to
solve the problem
more chances to #unfail
so what’s a goodstartup?
firstthingsfirst
nothinG matters
more than traction
solves a painful problem
for a specific customer
how can you be sure you’re
solving a problem?
how is it currently
being solved?
no competitors
=
no problem
=
no market
stop coding
get out of the building
talk to your customers
face your fears
validate assumptions
HOWAREYOUDIFFERENT
ANDBETTER?
HARD?EXPENSIVE?SUCKS?
F’IN
ANDGROWINGFAST
what’s your business model?
symmetric
customer pays
for experience
asymmetric
3rd party pays
for customer
DOES IT scale?
$1,000,000
$2,000,000
$3,000,000
$4,000,000
Craigslist Apple Google Facebook Amazon McDonalds
revenue
per employee$3.6M
$2...
don’t forget:
you are building a
repeatable business
measure everything
internet-driven
customer acquisition
main ingredient: team
hiring is hard
O much money
O stability
O support structure
O a long-term plan
P stock
P flexibility
P chance to make
a difference...
BUSINESS
DESIGN ENGINEERING
balanced startup team
what is your
unfair advantage?
ACCOMPLISHMENTS
MONEY RAISED?
PARTNERSHIPS?
GROWTH?
THESILICONVALLEYFUNDINGSTACK
BOOTSTRAP/FriendsFamily&Fools
ACCELERATORS
ANGELS/SEEDVCs
$100M+VCFUNDS
GROWTHEQUITY
circa 20...
BOOTSTRAP
ACCELERATORS
ANGELS/SEEDVCs
$100M+VCFUNDS
GROWTHEQUITY
EUROPEANFUNDINGSTACKcirca 2014
/FFF
M&A/IPO
2001 DOT COM CRASHUS VC FUNDS RAN AWAY FROM EUROPE
few, STRONG EUROPEAN VC FUNDS SURVIVED
…andpre-date
LARGEFUNDTHESISAREBASED
ON$5M+FIRSTROUND
LIMITEDBIGDEALS
+
LIMITEDEXITS
=
MOSTREGIONAL
FUNDSTOOBIG
TOPROVIDEGOOD
RETURNS
YESTERDAY’SSEEDISTODAY’SSERIESA/B
YESTERDAY’SIPOsARETODAY’SACQUIHIRES
SOURCE: STEVE BLANK
SOURCE: SEED DB
MEDIANEXIT=$20M
EUROPEANECOSYSTEMDRIVER&BRIDGETOSILICONVALLEY
INVESTINTHESEEDROUNDSOFTOPEUROPEAN
STARTUPSWITHSPECIALEMPHASISONTHE
HIGH-POTENTIALCEEMARKET
MISSION
EUROPEPRODUCESHIGHER
MULTIPLESTHANU.S.
EXITARE25%SMALLER,BUT…
ENTRYVALUATIONSARE3-4XLOWER
EUROPEPRODUCES
1/2ASMANYEXITSASU.S.
AND1/3OF$100M+EXITS
WITHONLY20%OFU.S.VC
MEDIANCASH-ON-CASH
$100M+EXITMULTIPLE
4.5X
US
7.2X
EUROPE
2005-2011 SOURCE: EARLYBIRD, DOW JONES VENTURE SOURCE
REPEATENTREPRENEURS
INVCFUNDEDCOMPANIES
SOURCE: EARLYBIRD GLOBAL ENTREPRENEURSHIP REPORT
1 9 9 8 2 0 0 7
93%NEW
7%REPEAT
5...
FUND+ECOSYSTEMDRIVER
INVESTMENTSCONFERENCES & EVENTS EDUCATIONAL PROGRAMS
LEADINGSTARTUP
GATHERINGINCEE
BRIDGE TO SILICON ...
DESIGN//BUILD//FUND
want the slides?
follow @vitalyg
Don't be a F'in Wantrepreneur - Startup Village #SUV2014
Don't be a F'in Wantrepreneur - Startup Village #SUV2014
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Don't be a F'in Wantrepreneur - Startup Village #SUV2014

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Don't be a F'in Wantrepreneur - Startup Village #SUV2014

  1. DON’TBEAF***INGWANTREPRENEUR VITALYM.GOLOMB @VITALYG JUNE3rd,2014
  2. K E E N P R I N T. C O M +Investor C E E D . V C
  3. corporate people startup people P experts in one area P years climbing ladder P stable lifestyle P real responsibilities P life balance P generalists P early start P cheap lifestyle P nothing to lose P nothing else matters
  4. so what THE F*** is a startup?
  5. A STARTUP IS... an experiment in search of a business model- steve blank
  6. SCALABLE
 STARTUP transition company business model found product/market fit repeatable sales model managers hired break-even profitable rapid scale new senior management ~150 people “a startup is not a smaller version of a large company”- steve blank
  7. A STARTUP IS A COMPANY THAT IS CONFUSED ABOUT: 1. WHAT ITS PRODUCT IS, 2. WHO ITS CUSTOMERS ARE, 3. HOW TO MAKE MONEY - DAVE MCCLURE
  8. “A STARTUP’s default state is #failure. as a founder, you have to work to unfail it.”- VITALY M. GOLOMB
  9. a little distraction
  10. THE Ballmer peak
  11. why would you want to start a company?
  12. get good grades go to a good college get in a good company get regular promotions retire, play golf, die normal career
  13. startup career -if successful- what people think it looks like what it really looks like
  14. entrepreneurship is a mental disorder
  15. but it takes a little crazy... to change the world
  16. so, why are youdoing it?
  17. for the money?
  18. for the IPO money?
  19. 50 100 150 200 250 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 number of tech ipos since 1999 26 <26
  20. funded startup success rate 30% fail 30% unprofitable 30% somewhat profitable 10% big success
  21. by the way... #failure in startups is overgloried
  22. failure is for losers - Beck
  23. 1st time founder 18% repeat failed founder 20% repeat successful founder 30% the odds are against you
  24. you’ll get acquired if you are lucky and good
  25. freedom?
  26. normal job: one boss
  27. startup: every user is your boss
  28. have a family? they will suffer
  29. “as a startup ceo, i slept like a baby. i woke up every 2 hours and cried.” - ben horowitz
  30. feeling defeated yet?
  31. founder and team morale jess lee - “why startup founders are always unhappy”
  32. good news: you can improve your chances
  33. find a problem you can’t live without solving
  34. don’t build technology looking for a problem to solve solve a painful problem
  35. what is all this lean bullshit?
  36. lean = quick iterations
  37. more chances to solve the problem
  38. more chances to #unfail
  39. so what’s a goodstartup?
  40. firstthingsfirst
  41. nothinG matters more than traction
  42. solves a painful problem for a specific customer
  43. how can you be sure you’re solving a problem?
  44. how is it currently being solved?
  45. no competitors = no problem = no market
  46. stop coding get out of the building talk to your customers face your fears validate assumptions
  47. HOWAREYOUDIFFERENT ANDBETTER? HARD?EXPENSIVE?SUCKS?
  48. F’IN
  49. ANDGROWINGFAST
  50. what’s your business model?
  51. symmetric customer pays for experience
  52. asymmetric 3rd party pays for customer
  53. DOES IT scale?
  54. $1,000,000 $2,000,000 $3,000,000 $4,000,000 Craigslist Apple Google Facebook Amazon McDonalds revenue per employee$3.6M $2.15M $1.25M $1.1M $691K $64K
  55. don’t forget: you are building a repeatable business
  56. measure everything
  57. internet-driven customer acquisition
  58. main ingredient: team
  59. hiring is hard
  60. O much money O stability O support structure O a long-term plan P stock P flexibility P chance to make a difference what you don’t have what you do have
  61. BUSINESS DESIGN ENGINEERING balanced startup team
  62. what is your unfair advantage?
  63. ACCOMPLISHMENTS MONEY RAISED? PARTNERSHIPS? GROWTH?
  64. THESILICONVALLEYFUNDINGSTACK BOOTSTRAP/FriendsFamily&Fools ACCELERATORS ANGELS/SEEDVCs $100M+VCFUNDS GROWTHEQUITY circa 2014 M&A/IPO
  65. BOOTSTRAP ACCELERATORS ANGELS/SEEDVCs $100M+VCFUNDS GROWTHEQUITY EUROPEANFUNDINGSTACKcirca 2014 /FFF M&A/IPO
  66. 2001 DOT COM CRASHUS VC FUNDS RAN AWAY FROM EUROPE few, STRONG EUROPEAN VC FUNDS SURVIVED
  67. …andpre-date LARGEFUNDTHESISAREBASED ON$5M+FIRSTROUND
  68. LIMITEDBIGDEALS + LIMITEDEXITS = MOSTREGIONAL FUNDSTOOBIG TOPROVIDEGOOD RETURNS
  69. YESTERDAY’SSEEDISTODAY’SSERIESA/B
  70. YESTERDAY’SIPOsARETODAY’SACQUIHIRES
  71. SOURCE: STEVE BLANK
  72. SOURCE: SEED DB MEDIANEXIT=$20M
  73. EUROPEANECOSYSTEMDRIVER&BRIDGETOSILICONVALLEY
  74. INVESTINTHESEEDROUNDSOFTOPEUROPEAN STARTUPSWITHSPECIALEMPHASISONTHE HIGH-POTENTIALCEEMARKET MISSION
  75. EUROPEPRODUCESHIGHER MULTIPLESTHANU.S.
  76. EXITARE25%SMALLER,BUT… ENTRYVALUATIONSARE3-4XLOWER
  77. EUROPEPRODUCES 1/2ASMANYEXITSASU.S. AND1/3OF$100M+EXITS WITHONLY20%OFU.S.VC
  78. MEDIANCASH-ON-CASH $100M+EXITMULTIPLE 4.5X US 7.2X EUROPE 2005-2011 SOURCE: EARLYBIRD, DOW JONES VENTURE SOURCE
  79. REPEATENTREPRENEURS INVCFUNDEDCOMPANIES SOURCE: EARLYBIRD GLOBAL ENTREPRENEURSHIP REPORT 1 9 9 8 2 0 0 7 93%NEW 7%REPEAT 50%NEW 50%REPEAT
  80. FUND+ECOSYSTEMDRIVER INVESTMENTSCONFERENCES & EVENTS EDUCATIONAL PROGRAMS LEADINGSTARTUP GATHERINGINCEE BRIDGE TO SILICON VALLEY REAL VALUE ADD physicalpresence,establishednetwork and partnershipswithtopinvestors, platforms,andmajorenterprises hands-onmarketingandgrowth consultingforportfoliocompanies connectiontoaworldofmentors
  81. DESIGN//BUILD//FUND
  82. want the slides? follow @vitalyg

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