Strategies for Startup Success
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17-Oct-2014 -
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Transcript of Strategies for Startup Success
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Strategies for Startup SuccessSim Simeonov
Polaris Venture Partners
[email protected]://simeons.wordpress.com
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The wiser speakers refused to talk on this subject
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The same strategies that have the highest probability of
extreme success also have the highest probability of extreme
failure--Guy Kawasaki
http://simeons.wordpress.com/2007/02/21/guy-kawasaki-why-good-strategies-fail/
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How much risk did PayPal take on?
Livingston, Jessica. Founders At Work. p6 (interview with Max Levchin)
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Poor analysis of the wrong data in a mythological context
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• Limited or inaccurate data• Correlation vs. causation• Omitted variable bias• Sensationalism
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Most of the industry’s effort is spent analyzing successes
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Revisionist history due to egocentric ex post facto
analysis
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Why Did YouTube Succeed?
http://www.youtube.com/watch?v=nssfmTo7SZg (talk by YouTube co-founder Jawed Karim)
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Success is often the result ofavoiding failure by will or luck
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Why Do Startups Succeed and Fail?
Sim SimeonovPolaris Venture Partners
[email protected]://simeons.wordpress.com
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The more thoughtful speakers refused to talk on this subject
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What do “success” and “failure” mean?
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Company “A” raises $100+M of institutional capital and goes
public at $2.4B valuation
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Company “F” raises $2M and sells for $20M
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Company “M” raises 500K and shuts down six months later
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• Innovation?• Market share?• Revenues?• Impact?
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• Employees?• Execs?• Founders?• Angel investors?• Institutional investors?
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Efficient experimentation is critical to any evolutionary
system
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Success and failure are notuseful analysis targets
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The Startup Environment
Sim SimeonovPolaris Venture Partners
[email protected]://simeons.wordpress.com
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Emily is a helluva persuader
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• Experienced investors• National focus• $3B under management• Diversified across stage & sectors• Active partner with entrepreneurs• Great track record
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The technology industry has changed substantially in the
past few years
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Technology
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$1,000M $1,000M
$100M$100M
$10M$40M
The leaderThe #3 player
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Winners used to be selected by the market. Now they are
anointed through M&A
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How successful would Flickr have been without Yahoo?
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Sustainable differentiation and solid execution
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• Superior execution• Cut the right deal(s)• Network effects
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Protectable technology enables a defensible business model
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It is the best of times, it is the worst of times