2011.04.08 startup-sauna-stockholm

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Ake Edlund from SICS Seed Accelerator (see blog at www.fortune1m.com) presented his thoughts about Startup Life and Seed Accelerators at Startup Sauna Stockholm. In the slides there are more, including how cloud computing is useful for startups. Link to SICS Seed Accelerator is www.sics.se/seedaccelerator

Transcript of 2011.04.08 startup-sauna-stockholm

  • ke Edlund - multitasker2011 Seed Accelerator Co-founder C!C KTH-SICS Founder Cloud Innovation Center Coach Cycore Sony Ericsson EU-Supply Parallel Systems Ericsson Business Innovation1993 Uppsala, Rice, Berkeley, TechnionStartups Academia Industry
  • ke Edlund Startup Life & Seed AcceleratorsSEED ACCELERATOR
  • Part 1/2 Startup Life
  • Preparing this presentation Something Id needed when in your age My view - minimizing copy-paste Discussion please do interrupt Adding realism to your dreams, still keeping them alive Inspiration
  • Startups, the theory #1 Get an idea Find a garage Create a world leading . Get funding Do an IPO World domination!
  • Startups, the theory #2 Get an idea Write a business plan Get funding
  • Startups, the theory #3 Get/steal an idea Use open source spare parts Add your own proprietary part Write a business plan Get funding
  • Startups, the theory #4 Get an idea Patent it Wait for someone big to buy you
  • Startups, the theory #4bGet an idea that complements some big players portfolioRun your business long enough to attract a good user baseWait some moreSomeone might give you a call
  • Startups, the theory #5New technologyBuild a long range of products around thisLaunch them one after another. thats the ofcial story
  • What can we learn from successstories? Not much Inspirational Some must haves
  • Startups, the non-theory, failures More to learn here! But who to tell you?
  • Startup failure #1 too early Great product, won many prizes Many years of hard work in garage Bring in fresh VC capital CEO and mgmt from world class rm Defunct pricing model, non-viral Have to teach the market Heavy stafng and expansion burn! Cash ow.
  • Startup failure #2 too slowEven greater productStill possible to make betterJumps into an incubatorFix-x-x. (instead of Ship-x-)Turns more and more into an R&D projectIncubator hires incompetent CEOsTimes up! Share holders leave.
  • Startup failure #3 lost controlGreat ideaRunning fast, quick successful rolloutHuge burnrate, but succeeds in getting huge investmentsGreat offering of buyout but, lost control, cant get a sellMarket diesStruggle on
  • Startup failure #4 never startedDecide to combine with consultancyAfter some years, you realize youre nothingmore (or less) than a consultancy rm
  • What to learn from these failures? Quite much But, the risks comes in many avours #1: Listen to your intuition
  • Before we start Why startup? Why me? Why now?
  • Why startup?Whatever you are building, its about passion, and lessabout the money.Your goals should be about changing theworld, or making the world a better place. There aremany people who set out to change the world a betterplace and didnt make a lot of money. But there are evenmore who set out to make a lot of money, did not make alot of money and did not change the world. Guy Kawasaki
  • Why startup? Freedom, kind of Creativity AdVenture, you better like it...
  • Build your teamFriends, or not?Getting full commitment fair shareGet advice, but dont expect too much
  • Build a presence Web blog, mail, twitter F2F conferences (outside),
  • Cost control consulting In parallel with building a business As part of product development Safer but slower Cash ow Reality check Recruitment
  • Ofce do you need one?Home sweet home, Cafs, Hotel lobbies,
  • Finding customers Use your network Build a presence on the web Lot of calls, and meetings
  • Meeting customers, closing deals Negotiation learn how, practice Ask, and ask again Build a relationship Learn to say no
  • Endurance - company Cash ow again! Your time is limited
  • Endurance - you Burn out - not a joke - hard to get back from - signs that you wont listen to
  • Endurance work hard, but smartValue your time. Get your sleep. Get time off.
  • Incubators Do you really need them? For what? How good are they?
  • Before buying a .com address Did you do your homework? Test it, not only on friends Do your googeling, but dont drown Dont overdo it!
  • Before buying a .com addressAgain: dont read too muchIt is a highly complex problem, too many unknowns.Get hands-on experience
  • You miss 100% of the shots you never take. Wayne Gretzky (*)(*)Thanks John Greathouse - http://infochachkie.com/nps/
  • Part 2/2Seed Accelerators
  • VCs old school Are you a x15 startup? Do you really need them, now? What will it cost you? Are they smart money or just money? And are there any? And if not .. dont think business angels are that much better.
  • New School Re-think Startups Re-think Incubators Re-think VCs
  • The startup world is changing "Startups can be run so cheaply now (with open-source software, cloud computing, and virtual teams spread across the Web) that many more can achieve protability without any VC cash. Paul Graham,Ycombinator
  • The startup world is changing "Imagine what it would do to the VC business if the next hot company didnt take VC at all. The less venture capital there is for new startups, the faster the decoupling will begin. Paul Graham,Ycombinator
  • The Innovation Landscape is Changing Bootstrapping: Cloud Computing, Open Source, Network, MobilityStartup: 1. Lower riskBootstrapping 2. Quicker to start 1. More Startups 2. More controlMore exible 3. Startup gets further to Startups with lessInvestor: + - More to evaluate Lower risk Less control Lower investment to more Harder to get in early Faster response Missing more
  • Seed AcceleratorsHelping many during a short time to get to a good next step.Very early stage. Technical focus. Technical entrepreneurs with Network AND Often backed by Venture Capital - that get helpwith volume and early information and lower risk. SEED ACCELERATOR
  • March 2010: "Y Combinator Matures" - 1/4 of Startups Funded Before They Finish the ProgramOctober 2010: 1000 skandeJan 29, 2011: "Yuri Milner, SV Angel Offer EVERY New Y Combinator Startup $150k"
  • Seed Accelerator challenges 7 3 6 4 51 21 Applications ow2 Filtering3 Deal making - start4 Match making5 Value increase6 Deal making - end, Finding investments for next step7 Good ones - seldom go through these services