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Don't Be A Wantrepreneur #KyivFTW

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Presented at Kyiv FTW on December 1st, 2014

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Don't Be A Wantrepreneur #KyivFTW

  1. 1. DON’T BE A F***ING WANTREPRENEUR VITALY M. GOLOMB @VITALYG #KYIVFTW DEC 1st, 2014
  2. 2. +Investor
  3. 3. cccstartups.com @cccstartups
  4. 4. 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
  5. 5. SO WHAT THE F*** IS A STARTUP?
  6. 6. A STARTUP IS... an experiment in search of a business model - steve blank
  7. 7. 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
  8. 8. 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
  9. 9. “A STARTUP’S DEFAULT STATE IS #FAILURE. AS A FOUNDER, YOU HAVE TO WORK TO UNFAIL IT.” - VITALY M. GOLOMB
  10. 10. why would you want to start a company?
  11. 11. retire, play golf, die get regular promotions get in a good company go to a good college get good grades normal career
  12. 12. startup career if successful what people think it looks like what it really looks like
  13. 13. entrepreneurship is a mental disorder
  14. 14. but it takes a little crazy... to change the world
  15. 15. so, why are you doing it?
  16. 16. for the money?
  17. 17. for the IPO money?
  18. 18. 250 200 150 100 50 number of tech ipos since 1999 26 <50 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
  19. 19. funded startup success rate 30% unprofitable 30% fail 30% somewhat profitable 10% big success
  20. 20. BY THE WAY... #FAILURE IN STARTUPS IS OVERGLORIFIED
  21. 21. FAILURE IS a hard lesson
  22. 22. the odds are against you 1st time founder 18% repeat failed founder 20% repeat successful founder 30%
  23. 23. you’ll get acquired if you are lucky and good
  24. 24. freedom?
  25. 25. normal job: one boss
  26. 26. startup: every user is your boss
  27. 27. have a family? they will suffer
  28. 28. “as a startup ceo, i slept like a baby. i woke up every 2 hours and cried.” - ben horowitz
  29. 29. feeling defeated yet?
  30. 30. founder and team morale jess lee - “why startup founders are always unhappy”
  31. 31. good news: you can improve your chances
  32. 32. find a problem you can’t live without solving
  33. 33. don’t build technology looking for a problem to solve solve a painful problem
  34. 34. what is all this lean bullshit?
  35. 35. lean = quick iterations
  36. 36. more chances to solve the problem
  37. 37. more chances to #unfail
  38. 38. so what’s a good startup?
  39. 39. first things first
  40. 40. NOTHING MATTERS MORE THAN TRACTION
  41. 41. solves a painful problem for a specific customer
  42. 42. how can you be sure you’re solving a problem?
  43. 43. HOW IS IT CURRENTLY BEING SOLVED?
  44. 44. no competitors = no problem = no market
  45. 45. stop coding get out of the building talk to your customers face your fears validate assumptions
  46. 46. HARD? EXPENSIVE? SUCKS? HOW ARE YOU DIFFERENT AND BETTER?
  47. 47. F’IN
  48. 48. A RISING TIDE LIFTS ALL BOATS
  49. 49. what’s your business model?
  50. 50. symmetric customer pays for experience
  51. 51. asymmetric 3rd party pays for customer
  52. 52. DOES IT scale?
  53. 53. $4,000,000 $3,000,000 $2,000,000 $1,000,000 revenue per employee $3.6M $2.15M $1.25M $1.1M $691K $64K Craigslist Apple Google Facebook Amazon McDonalds
  54. 54. don’t forget: you are building a repeatable business
  55. 55. measure everything
  56. 56. internet-driven customer acquisition
  57. 57. main ingredient: team
  58. 58. hiring is hard
  59. 59. 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
  60. 60. BUSINESS with domain expertise DESIGN ENGINEERING balanced startup team
  61. 61. what is your unfair advantage?
  62. 62. ACCOMPLISHMENTS MONEY RAISED? PARTNERSHIPS? GROWTH?
  63. 63. THE SILICON VALLEY FUNDING STACK circa 2014 M&A / IPO GROWTH EQUITY $100M+ VC FUNDS ANGELS/SEED VCs ACCELERATORS BOOTSTRAP/Friends Family & Fools
  64. 64. EUROPEAN FUNDING STACKcirca 2014 M&A / IPO GROWTH EQUITY $100M+ VC FUNDS ANGELS / SEED VCs ACCELERATORS BOOTSTRAP / FFF
  65. 65. 2001 DOT COM CRASH US VC FUNDS RAN AWAY FROM EUROPE few, STRONG EUROPEAN VC FUNDS SURVIVED
  66. 66. IT IS EASIER TO STARTUP ANYWHERE NOW THEN IN SILICON VALLEY IN 1999
  67. 67. the new tools of the trade
  68. 68. VENTURE CAPITAL IS CHANGING
  69. 69. YESTERDAY’S SEED IS TODAY’S SERIES A/B
  70. 70. YESTERDAY’S IPOs ARE TODAY’S ACQUIHIRES
  71. 71. SOURCE: STEVE BLANK
  72. 72. MEDIAN EXIT = $20M SOURCE: SEED DB
  73. 73. WHY HERE? WHY NOW?
  74. 74. EUROPE PRODUCES HIGHER VENTURE EXIT MULTIPLES THAN U.S.
  75. 75. EUROPEAN EXIT ARE 25% SMALLER, BUT… ENTRY VALUATIONS ARE 3-4X LOWER
  76. 76. EUROPE PRODUCES 1/2 AS MANY EXITS AS U.S. AND 1/3 OF $100M+ EXITS WITH ONLY 20% OF U.S. VC
  77. 77. MEDIAN CASH-ON-CASH $100M+ EXIT MULTIPLE 4.5X US 7.2X EUROPE 2005-2011 SOURCE: EARLYBIRD, DOW JONES VENTURE SOURCE
  78. 78. EUROPEAN INVESTED CAPITAL UP OVER 35% IN 2014 ALONE SOURCE: PITCHBOOK
  79. 79. BRACE YOURSELVES INVESTORS ARE COMING
  80. 80. THE FUTURE FOR EUROPEAN STARTUPS IS BRIGHT
  81. 81. LOOKING FORWARD
  82. 82. WIN YOUR HOME 1MARKET FIRST
  83. 83. support/mentor 2the next generation
  84. 84. help build the ecosystem www.goo.gl/Y2nOL2 3 source:
  85. 85. want theSE slides? follow @vitalyg
  86. 86. one more thing…
  87. 87. COMING IN 2015 download 1ST CHAPTER free now www.founderco.com @vitalyg

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