Mistakes That Kill Startups

Mostafa ElzoghbiSr. Technical Evangelist – Microsoft@MostafaElzoghbi

Agenda• Startup structure• Idea and Market• Raising Capital• Communication & Execution• Final Thoughts

Startups Structure• Single Founder is a common failure reason• Fighting between founders, Yes it is a common thing• Founders don’t have what it takes to have a successful

startup• Poor allocation of resources and money• How many people they need to hire• Budget is not planned properly• Burn rate is so high

• Not wanting to get your hands dirty• One founder has to get up from your computer and fund

users/customers.

Idea & Market• Not having a specific user in mind• Open channels with your customers• Listen to their feedback, This is a free product roadmap• Turn their feedback into a learning experience

• A niche market idea• Choosing the wrong platform• Technology, Scalability, Security...etc

• Launching too early or too fast• Protect your reputation through early adopters

• Not realizing the competition in the market

Raising Capital• Raising too little money• When raising, you have to raise enough that takes you to

the next step• You have to know your numbers very well• Build a solid MVP that gives you a maximum flexibility

• Spending too much• Don’t do it if you can avoid it• Pay people with equity rather than a salary – Smart people

choice• Hire people either who can write code or can go out and get

you customers• Do not hire a lot of people, slows you down

Communications & Execution• You should not ignore your partners• You should not ignore your investors• You should not let investors run your company• Weak management team• Do enough work to validate the idea and before the

development• Poor execution which leads to poor product features

release, not built on time, and GTM execution strategies

Final Thoughts• Know your numbers, burn rate, resource

allocation..etc.• Work closely with you customers and partners to grow• Value partners and investors feedback and inputs• When reaching out to VC, make sure that you raise

enough money that will help you to the next step• Know your market size, competition and VP.

Thank You• Follow me on Twitter: @MostafaElzoghbi