Friday, May 15, 2015

Startup Here, Startup Meow #StartupAddVenture @ #ICTSummitPL (Warsaw, Poland)

Startup Here, Startup Meow #StartupAddVenture @ #ICTSummitPL (Warsaw, Poland)

Startup for Cats, presented at ICT Summir in Warsaw, Poland December 4th, 2014


Transcript

  • 1. STARTUP HERE STARTUP MEOW VITALY M. GOLOMB - @VITALYG
  • 2. #SLIDESHAREOFTHEYEAR
  • 3. +Investor
  • 4. cccstartups.com @cccstartups
  • 5. corporate CATS startup CATS 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
  • 6. SO WHAT THE F*** IS A STARTUP?
  • 7. A STARTUP IS... an experiment in search of a business model - steve blank
  • 8. 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
  • 9. 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
  • 10. “A STARTUP’S DEFAULT STATE IS #FAILURE. AS A FOUNDER, YOU HAVE TO WORK TO UNFAIL IT.” - VITALY M. GOLOMB
  • 11. why would you want to start a company?
  • 12. retire, play golf, die get regular promotions get in a good company go to a good college get good grades 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 you doing it?
  • 17. for the money?
  • 18. for the IPO money?
  • 19. 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
  • 20. funded startup success rate 30% unprofitable 30% fail 30% somewhat profitable 10% big success
  • 21. BY THE WAY... #FAILURE IN STARTUPS IS OVERGLORIFIED
  • 22. FAILURE IS a hard lesson
  • 23. the odds are against you 1st time founder 18% repeat failed founder 20% repeat successful founder 30%
  • 24. you’ll get acquired if you are lucky & 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 good startup?
  • 40. NOTHING MATTERS MORE THAN TRACTION
  • 41. solves a painful problem for a specific customer
  • 42. how can you be sure you’re solving a problem?
  • 43. HOW IS IT CURRENTLY BEING SOLVED?
  • 44. no competitors = no problem = no market
  • 45. stop coding get out of the building talk to your customers face your fears validate assumptions
  • 46. HARD? EXPENSIVE? SUCKS? HOW ARE YOU DIFFERENT AND BETTER?
  • 47. F’IN
  • 48. A RISING TIDE LIFTS ALL BOATS
  • 49. what’s your business model?
  • 50. symmetric customer pays for experience
  • 51. asymmetric 3rd party pays for customer
  • 52. DOES IT scale?
  • 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. don’t forget: you are building a repeatable business
  • 55. measure everything
  • 56. main ingredient: team
  • 57. hiring is hard
  • 58. 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
  • 59. BUSINESS with domain expertise DESIGN ENGINEERING balanced startup team
  • 60. what is your unfair advantage?
  • 61. ACCOMPLISHMENTS MONEY RAISED? PARTNERSHIPS? GROWTH?
  • 62. THE SILICON VALLEY FUNDING STACK circa 2014 M&A / IPO GROWTH EQUITY $100M+ VC FUNDS ANGELS/SEED VCs ACCELERATORS BOOTSTRAP/Friends Family & Fools
  • 63. EUROPEAN FUNDING STACKcirca 2014 M&A / IPO GROWTH EQUITY $100M+ VC FUNDS ANGELS / SEED VCs ACCELERATORS BOOTSTRAP / FFF
  • 64. 2001 DOT COM CRASH US VC FUNDS RAN AWAY FROM EUROPE few, STRONG EUROPEAN VC FUNDS SURVIVED
  • 65. IT IS EASIER TO STARTUP ANYWHERE NOW THEN IN SILICON VALLEY IN 1999
  • 66. the new tools of the trade
  • 67. VENTURE CAPITAL IS CHANGING
  • 68. SOURCE: STEVE BLANK
  • 69. MEDIAN EXIT = $20M SOURCE: SEED DB
  • 70. WHY HERE? WHY NOW?
  • 71. EUROPE PRODUCES HIGHER VENTURE EXIT MULTIPLES THAN U.S.
  • 72. EUROPEAN EXIT ARE 25% SMALLER, BUT… ENTRY VALUATIONS ARE 3-4X LOWER
  • 73. EUROPE PRODUCES 1/2 AS MANY EXITS AS U.S. AND 1/3 OF $100M+ EXITS WITH ONLY 20% OF U.S. VC
  • 74. MEDIAN CASH-ON-CASH $100M+ EXIT MULTIPLE 4.5X US 7.2X EUROPE 2005-2011 SOURCE: EARLYBIRD, DOW JONES VENTURE SOURCE
  • 75. EUROPEAN INVESTED CAPITAL UP OVER 35% IN 2014 ALONE SOURCE: PITCHBOOK
  • 76. BRACE YOURSELVES INVESTORS ARE COMING
  • 77. THE FUTURE FOR EUROPEAN STARTUPS IS BRIGHT
  • 78. LOOKING FORWARD
  • 79. WIN YOUR HOME 1MARKET FIRST
  • 80. support/mentor 2the next generation
  • 81. help build the ecosystem www.goo.gl/Y2nOL2 3 source:
  • 82. want theSE slides? follow @vitalyg
  • 83. COMING IN 2015 download 1ST CHAPTER free now www.founderco.com @vitalyg