Presentation on theme: "CONCEPT TO COMMERCIALIZATION CONSIDERATIONS FOR FOUNDERS CHRISTINE MILSAL & MCCAULL"— Presentation transcript:
CONCEPT TO COMMERCIALIZATION CONSIDERATIONS FOR FOUNDERS CHRISTINE MILSAL & MCCAULL
“If you want to do something that noone has done before, you must be comfortable with frustration, and failure, and confusion… and get used to being bewildered by why something that appeared so straight forward and simple turned out to be not that… then you [have the makings of a founder]”- Dean Kamen
.32 6 million! 1.6%
THE COMMITMENT Startups need 2-3 times longer to validate their market then founders expect. StartupGenome study 5 years from founding to monetization for venture backed startups, if they succeed Kaplan study 9 years for non-venture backed startups, if they succeed
5+ YEARS FROM FORMATION
KAPLAN STUDY FINDINGS: FOCUS: The concept and intention stay the same from BP to AR--- Stay the same or broaden, very very few narrow- none change GREAT TEAMS, SERIALLY: People are dispensable after formation stage- Product/tech/solution matter more- patents/IP than management and leadership Mgmt change with stage, more often w/VC- expertise only emphasized in beginning EXPECT TO HAND IT OVER: Founders move from operating to board to no involvement, venture funded founders stake moves from 32% to 3.2% SERIAL ENTREPRENEURS ARE THE OUTLIERS: Once non-human capital is established, few are serial entrepreneurs- may play operating role in other early stage companies- demoralization theory. “The market…does not value – and does not need to value – every good idea.”
MISCONCEPTIONS OF 1 ST TIME FOUNDERS Overestimate IP value by 255% Overestimate market size by 100x Underestimate investment Underestimate talent & importance of those with complementary skills (bidirectional!)
DISSECTING EARLY STAGE VENTURE Milestone based thinking- what are your trying to show Common milestones Proof of Concept/Product Market Validation Sales operations/economics- Get the model right Scale Up Granularity: The Art of Getting Things Done
FOCUSED TIME AND ATTENTION DRIVE SUCCESS Get the idea right- Learn fast/pivot no more than once (revisit Kaplan) Connect- Build advisors, follow people Engage!
TEAM Have 1 or 2 cofounders. Solo founders take 3.6x longer to reach scale stage compared to a founding team of 2 Fit, and intention- pre-canaa for founders! Balance your team Development, Design, Marketing/Sales, Operations Balanced teams drive results (Startup Genome) 30% more money 2.9x User growth 19% less likely to scale prematurely
COMMERCIALIZING Strategy Brand Reachable Market Value Proposition Socializing: Messaging/Communication Process – Understanding a funnel
THINK ABOUT MARKETS FROM THE OUTSET Who needs you and why? Build a viable path to market “Don’t be in a rush to get big, be in a rush to have a great product” – Ries Shift funds from R&D into sales Sales and marketing united for efficiency As creative as….
ATTRIBUTES/BELIEFS Personal Responsibility: Locus of Control Massively curious: Humble, Learning Execution: Work ethic & Showing Up Positivity: More Carrot
CORE BELIEFS OF EXTRAORDINARY LEADERS Business is an ecosystem, not a battlefield. A company is a community, not a machine. Management is service, not control. Employees are peers, not children. Motivation comes from vision, not from fear. Change equals growth, not pain. Technology offers empowerment, not automation. Work should be fun, not mere toil. Source: Geoffrey James
RESOURCES: Wasserman- new book Kaplan- IU of C StartupGenome Project Kauffmann Foundation NVCA Milsal.com for reading list and links.