launching your startup — financing your venture

LAUNCHING YOUR STARTUPLAUNCHING YOUR STARTUP

— Financing Your Venture —— Financing Your Venture —

by Jim Butterworthby Jim ButterworthU.S. Civilian Research & Development FoundationU.S. Civilian Research & Development Foundation

Idea to Market WorkshopIdea to Market WorkshopKazakhstan, June 2007Kazakhstan, June 2007

AgendaAgenda

Part IPart IIntroductionIntroductionThe Transition from Idea to The Transition from Idea to ExecutionExecutionBusiness PlanningBusiness Planning

Part IIPart IIA Primer on Venture CapitalA Primer on Venture CapitalFinancing Your VentureFinancing Your VentureOther Startup ConsiderationsOther Startup Considerations

My BackgroundMy Background

28 years in technology-related 28 years in technology-related ventures in all capacitiesventures in all capacities

Founder/CEO, venture capital firmFounder/CEO, venture capital firmFounder/CEO, early Internet companyFounder/CEO, early Internet companyCorporate finance/M&A, global investment Corporate finance/M&A, global investment bankbankTechnology marketingTechnology marketingProgrammer/engineerProgrammer/engineer

Owner/inventor of 14 issued and Owner/inventor of 14 issued and pending patents worldwidepending patents worldwide

EducationEducationBachelor of Industrial and Systems Bachelor of Industrial and Systems Engineering,Engineering,Georgia Institute of TechnologyGeorgia Institute of TechnologyMaster of Business Administration,Master of Business Administration,Amos Tuck School at Dartmouth CollegeAmos Tuck School at Dartmouth College

Impact of U.S. Small BusinessesImpact of U.S. Small Businesses

25.8 million U.S. businesses25.8 million U.S. businesses

““Small” businesses represent:Small” businesses represent:99.9% of total businesses99.9% of total businesses50% of the private work force50% of the private work force41% of high tech jobs41% of high tech jobs75% of net new jobs75% of net new jobs41% of private sales41% of private sales52% of private sector output52% of private sector output97% of all U.S. exporters with 29% of 97% of all U.S. exporters with 29% of export valueexport value

Produce 13-14x patents/employee Produce 13-14x patents/employee (and 2x likely to be among the (and 2x likely to be among the 1% most cited)1% most cited)

Source: U.S. Small Business Administration (2002 survey)

Impact of Venture-Backed CompaniesImpact of Venture-Backed Companies

In the U.S.:In the U.S.:$1.8 trillion in revenue in 2003 (9.6% $1.8 trillion in revenue in 2003 (9.6% of all sales) of all sales) 10.1 million jobs in 2003 (9.4% of 10.1 million jobs in 2003 (9.4% of employment)employment)600,000 new net jobs from 2000-2003 600,000 new net jobs from 2000-2003

In Europe:In Europe:1.0 million jobs in 20041.0 million jobs in 2004630,000 new net jobs created from 2000-630,000 new net jobs created from 2000-20042004Highest growth rates in biotech, health Highest growth rates in biotech, health care and medical devicescare and medical devicesLargest absolute growth in university Largest absolute growth in university spin-offsspin-offs

Impact of U.S. UniversitiesImpact of U.S. Universities

Established > 4,100 new companies Established > 4,100 new companies since 1980, 2/3 of which were still since 1980, 2/3 of which were still operatingoperating

Executed > 30,000 active technology Executed > 30,000 active technology transfer licenses (including > 4,500 transfer licenses (including > 4,500 in 2003), generating > $1.3 billion in 2003), generating > $1.3 billion in license incomein license income

Launched > 2,200 new commercial Launched > 2,200 new commercial products between 1998-2003products between 1998-2003

Performed > $30 billion of R&D in Performed > $30 billion of R&D in 20012001

Filed 8,000 U.S. patent applications Filed 8,000 U.S. patent applications in 2003in 2003

Lifecycle of a StartupLifecycle of a Startup

Conception / Conception / InventionInvention

Seed StageSeed StageFormation / Formation / incorporationincorporationMarket researchMarket researchProduct researchProduct research

Early StageEarly StageProduct Product developmentdevelopmentTeam formationTeam formationInfrastructure Infrastructure build-outbuild-out

LaunchLaunch

Growth StageGrowth Stage

Expansion Expansion PhasePhase

ExitExit

Post-ExitPost-Exit

Startup FundamentalsStartup Fundamentals

Solid foundation Solid foundation = best chance of = best chance of funding your funding your ventureventure

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Pour a Solid FoundationPour a Solid Foundation

Market-driven conceptMarket-driven conceptTalk to prospective customersTalk to prospective customersAssess market and competitionAssess market and competition

Resolve legal issues upfrontResolve legal issues upfrontSatisfy prior employment obligationsSatisfy prior employment obligationsIncorporate properlyIncorporate properlyCheck intellectual property rights (patents, Check intellectual property rights (patents, trademarks, copyrights and NDAs)trademarks, copyrights and NDAs)Spin-out cleanlySpin-out cleanly

Form a solid teamForm a solid teamManagement, board, advisors, professionals Management, board, advisors, professionals Teamwork begets successTeamwork begets success

If possible, kick-start the If possible, kick-start the businessbusiness

Spin-out / acquisitionSpin-out / acquisitionKey customerKey customer

Be Market-Driven!Be Market-Driven!

Purchase decisions are based on Purchase decisions are based on relationships – understand your relationships – understand your customerscustomers

Understand and model your Understand and model your customers’ economic benefit:customers’ economic benefit:

How are they currently solving the problem?How are they currently solving the problem?How will their work processes change by How will their work processes change by using your product?using your product?What is their economic benefit / ROI?What is their economic benefit / ROI?

Your product/service must be Your product/service must be better, faster better, faster andand cheaper cheaper

Protect Your Assets!Protect Your Assets!









Cash Flow is Your Life Blood!Cash Flow is Your Life Blood!

CFIMITYMCFIMITYM

Cash flow comes ultimately Cash flow comes ultimately and most importantly from and most importantly from customers, NOT from investorscustomers, NOT from investors

Profit is not cash flowProfit is not cash flow

Capitalize properlyCapitalize properly

Business PlanningBusiness Planning

““The plan is useless; it’s the The plan is useless; it’s the planning that’s important.”planning that’s important.”

General Dwight D. Eisenhower, on the General Dwight D. Eisenhower, on the success of his D-Day invasion plansuccess of his D-Day invasion plan

The process of uncovering and The process of uncovering and identifying what creates and identifying what creates and drives value in your business, drives value in your business, and the risks involvedand the risks involved

A business plan is an A business plan is an outputoutput of of the business planning processthe business planning process

Output of the Business Planning Output of the Business Planning ProcessProcess

Business plan (narrative)Business plan (narrative)

Pro forma financial Pro forma financial statementsstatements

PowerPoint pitch (12-13 PowerPoint pitch (12-13 pages)pages)

Elevator pitch (1-2 minutes)Elevator pitch (1-2 minutes)

A Business Plan…A Business Plan…

Describes all the critical Describes all the critical internal and external elements internal and external elements and strategies for guiding the and strategies for guiding the direction of your companydirection of your company

Communicates how you will Communicates how you will create sustainable valuecreate sustainable value

Identifies risks and Identifies risks and uncertainties and communicates uncertainties and communicates how you will manage themhow you will manage them

Describes the company’s Describes the company’s structure, objectives and structure, objectives and future plansfuture plans

Uses of a Business Plan (Internal)Uses of a Business Plan (Internal)

Refining your Refining your product / service product / service strategystrategy

Identifying key Identifying key customerscustomers

Identifying Identifying milestones and milestones and timelinestimelines

Helping set Helping set objectives & objectives & performance performance metricsmetrics

Managing risk and Managing risk and uncertaintyuncertainty

Motivating and Motivating and focusing employeesfocusing employees

Analyzing capital Analyzing capital budgeting budgeting decisionsdecisions

Facilitating new Facilitating new product product developmentdevelopment

Integrating new Integrating new acquisitionsacquisitions

Facilitating Facilitating restarts, restarts, restructuring and restructuring and turnaroundsturnarounds

Uses of a Business Plan (External)Uses of a Business Plan (External)

Attracting key employeesAttracting key employees

Educating potential investorsEducating potential investors

Arranging strategic alliancesArranging strategic alliances

Obtaining large contracts Obtaining large contracts with strategic customerswith strategic customers

Facilitating mergers and Facilitating mergers and acquisitionsacquisitions

The 12-13 Page PowerPoint PitchThe 12-13 Page PowerPoint Pitch

Summary (1)Summary (1)Mission statementMission statementWhat is the idea?What is the idea?How will it How will it create value?create value?Timeline / Timeline / milestonesmilestonesExpected resultsExpected resultsSpecific request Specific request (e.g., $)(e.g., $)

The Mission StatementThe Mission Statement

To create [value/EVA]To create [value/EVA]by [product/service] for/to by [product/service] for/to

[customer(s)] by…[customer(s)] by…

Strategic

Objective 1

Strategic

Objective 2

Strategic

Objective 3

The Mission StatementThe Mission Statement

Mission Statement ExampleMission Statement Example

To be Kazakhstan’s leading To be Kazakhstan’s leading producer of “A-class” widgets producer of “A-class” widgets to the natural gas sector by:to the natural gas sector by:

Securing exclusive purchase Securing exclusive purchase contracts with 3 of the top 10 contracts with 3 of the top 10 customers of A-class widgets in customers of A-class widgets in Kazakhstan;Kazakhstan;Creating proprietary manufacturing Creating proprietary manufacturing methods for the highest yield of A-methods for the highest yield of A-class widgets; andclass widgets; andBuilding a world-class team of Building a world-class team of research & development scientists research & development scientists and engineers.and engineers.


Summary (1)Summary (1)Mission statementMission statementWhat is the idea?What is the idea?How will it create How will it create value?value?Timeline / milestonesTimeline / milestonesExpected resultsExpected resultsSpecific request Specific request (e.g., $)(e.g., $)

Market OverviewMarket Overview(2)(2)

Substantiation of Substantiation of needneedThe opportunity The opportunity (size, trends, etc.)(size, trends, etc.)Market validationMarket validationIdentification of Identification of prospective customersprospective customers

Major Pain PointsMajor Pain Points

What is the major pain your What is the major pain your customers face currently and/or customers face currently and/or in the future?in the future?

CostCostConvenienceConvenienceGrowthGrowthFocusFocusTime-to-marketTime-to-marketRegulatory complianceRegulatory compliance

Why are alternative Why are alternative products/services not addressing products/services not addressing the pain (fully)?the pain (fully)?

Why won’t this change?Why won’t this change?

Favorable Market DynamicsFavorable Market Dynamics

The market is The market is largelarge for our for our product/service:product/service:

Size stat 1Size stat 1Size stat 2Size stat 2Size stat 3Size stat 3

The market is The market is growinggrowing for our for our product / service:product / service:

Growth stat 1Growth stat 1Growth stat 2Growth stat 2Growth stat 3Growth stat 3

Market trends favor us:Market trends favor us:Trend 1Trend 1Trend 2Trend 2Trend 3Trend 3


Summary (1)Summary (1)Mission statementMission statementWhat is the idea?What is the idea?How will it create How will it create value?value?Timeline / milestonesTimeline / milestonesExpected resultsExpected resultsSpecific request Specific request (e.g., $)(e.g., $)

Market OverviewMarket Overview(2)(2)

Substantiation of Substantiation of needneedThe opportunity The opportunity (size, trends, etc.)(size, trends, etc.)Markey validationMarkey validationIdentification of Identification of prospective customersprospective customers

Description of Description of Product/Service Product/Service (2)(2)

Overview of Overview of product / service, product / service, including including high-levelhigh-level technology technology descriptiondescriptionSpecific value Specific value proposition proposition (including (including qualitative & qualitative & quantitative quantitative customer benefits)customer benefits)Correlate product / Correlate product / service features & service features & benefits with market benefits with market needsneedsValue chain dynamicsValue chain dynamics


Operating Plan Operating Plan (2)(2)

Production / Production / manufacturingmanufacturingMarketing / Marketing / distributiondistributionSales & marketing Sales & marketing planplan

Competitive Competitive Environment (2)Environment (2)

Sustainable Sustainable competitive competitive advantagesadvantagesAlternativesAlternativesCompetition Competition (existing and (existing and potentialpotential

What’s Proprietary About Your Idea?What’s Proprietary About Your Idea?

Competitive AdvantagesCompetitive AdvantagesProprietary IPRProprietary IPRExclusive distributionExclusive distributionExclusive content / sourcesExclusive content / sourcesProprietary manufacturingProprietary manufacturingProprietary integrationProprietary integrationInstalled base / customer contractsInstalled base / customer contractsUnparalleled capital structureUnparalleled capital structureUnparalleled scale, scope and/or focusUnparalleled scale, scope and/or focusTeam with unique expertise and/or accessTeam with unique expertise and/or accessFirst mover advantageFirst mover advantage

Distinguish between Distinguish between momentarymomentary and and sustainablesustainable

Must correlate to Must correlate to strategic strategic objectivesobjectives






The Team (1)The Team (1)Management expertise Management expertise & relevance& relevanceBoard, advisors, Board, advisors, professionals & professionals & othersothersIdentify key hiring Identify key hiring needsneeds

Financials (1-2)Financials (1-2)Pro forma snapshotPro forma snapshotKey metrics / driversKey metrics / driversFunding requirements Funding requirements (optional)(optional)

Financial ProjectionsFinancial Projections

(in thousands)(in thousands) 20072007 20082008 20092009 20102010

Revenue driver 1 Revenue driver 1 (1)(1)

Revenue driver 2 Revenue driver 2 (2)(2)

Cost driver 1 Cost driver 1 (3)(3)

Net RevenueNet Revenue

– – Cost of Sales Cost of Sales (4)(4)

= = Gross ProfitGross Profit

– – SG&A SG&A (5)(5)

= = Pre-tax Income Pre-tax Income (Loss)(Loss)NotesNotes(1)(1) Assumption 1Assumption 1(2)(2) Assumption 2Assumption 2(3)(3) Assumption 3Assumption 3(4)(4) Assumption 4Assumption 4(5)(5) Assumption 5Assumption 5

Numbers Numbers will prove will prove wrong!wrong!

Key is to Key is to understand understand drivers drivers and and assumptionassumptions s sincesince……

Funding RequirementsFunding Requirements

Does your venture need external Does your venture need external financing?financing?

How much & when?How much & when?Venture capital, debt, etc.Venture capital, debt, etc.

Capital structure considerationsCapital structure considerationsOptions plans, etc.Options plans, etc.Position vis-à-vis in-kind contributionsPosition vis-à-vis in-kind contributions

Use of proceeds; e.g.:Use of proceeds; e.g.:

StaffStaff $200,00$200,0000

Technology & IPR developmentTechnology & IPR development 150,000150,000

Equipment & facilitiesEquipment & facilities 200,000200,000

Other legal, operations, SG&A Other legal, operations, SG&A and misc.and misc. 100,000100,000

Reserve (net of cash on hand)Reserve (net of cash on hand) 100,000100,000

TotalTotal $750,00$750,0000






The Team (1)The Team (1)Management expertise Management expertise & relevance& relevanceBoard, advisors, Board, advisors, professionals & professionals & othersothersIdentify key hiring Identify key hiring needsneeds

Financials (1-2)Financials (1-2)Pro forma snapshotPro forma snapshotKey metrics / Key metrics / driversdriversFunding requirements Funding requirements (optional)(optional)

Road Map (1)Road Map (1)Major Major accomplishmentsaccomplishments90-day plan90-day planHorizonHorizon


Appendix (as long as you Appendix (as long as you want)want)

Market details (e.g., surveys)Market details (e.g., surveys)Product detailsProduct detailsOperating & financial detailsOperating & financial detailsRésumés (CVs)Résumés (CVs)Articles / research reportsArticles / research reportsPatents & IPRsPatents & IPRsKey contractsKey contractsBrochuresBrochures

The Elevator PitchThe Elevator Pitch

One of the most important One of the most important “outputs” of business planning“outputs” of business planning

Convinces the “target person” to Convinces the “target person” to schedule a longer meeting with youschedule a longer meeting with you

Empowers and enables the “target Empowers and enables the “target person” to convince other person” to convince other appropriate people to become appropriate people to become interested in your ideainterested in your idea

Resonates, demonstrates sincerityResonates, demonstrates sincerity

Communicates a sense of value, Communicates a sense of value, empathy and urgencyempathy and urgency

No more than 1-2 minutes!No more than 1-2 minutes!

Part I SummaryPart I Summary

Pour a solid foundationPour a solid foundation

Protect your strategic assets Protect your strategic assets (like IPRs)(like IPRs)

Value is in the business Value is in the business planning, not the business planning, not the business planplan

Be concise and to the point Be concise and to the point with pitch materialswith pitch materials

Be top-down customer-driven, Be top-down customer-driven, not bottom-up product-drivennot bottom-up product-driven

AgendaAgenda



Review of Part IReview of Part I

Pour a solid foundationPour a solid foundation

Protect your strategic assets Protect your strategic assets (like IPRs)(like IPRs)

Value is in the business Value is in the business planning, not the business planning, not the business planplan

Be concise and to the point Be concise and to the point with pitch materialswith pitch materials

Be top-down customer-driven, Be top-down customer-driven, not bottom-up product-drivennot bottom-up product-driven

AgendaAgenda



A Primer on Venture CapitalA Primer on Venture Capital

What is venture capital?What is venture capital?A cash investment made by A cash investment made by professional, institutionally backed professional, institutionally backed investors to emerging growth investors to emerging growth businessesbusinessesGenerally made as cash in exchange Generally made as cash in exchange for equity (ownership) in the for equity (ownership) in the investee companyinvestee companyUsually high risk, but with the Usually high risk, but with the potential for above-average returnspotential for above-average returns

U.S. Venture Capital MarketU.S. Venture Capital Market



PLACEHOLDER

European Venture Capital MarketEuropean Venture Capital Market



PLACEHOLDER

Types of Venture CapitalTypes of Venture Capital

PrivatePrivateProfessionally Professionally managedmanagedReturn on Return on investment focusedinvestment focusedMay bring network, May bring network, business advice, business advice, credibility, etc.credibility, etc.

CorporateCorporateManage riskManage riskDistribution Distribution networksnetworksProduct R&DProduct R&DOperational skillsOperational skillsSpin-outsSpin-outs

AcademicAcademicIntellectual Intellectual propertypropertySpin-outsSpin-outs

GovernmentGovernmentCreate new jobs and Create new jobs and grow economygrow economyOffer cash, tax Offer cash, tax incentives, in-kindincentives, in-kindStem brain-drainStem brain-drain

AngelsAngelsMay bring network, May bring network, business advice, business advice, credibility, etc.credibility, etc.Live vicariouslyLive vicariously

The 3FsThe 3Fs

Venture Capital Investment CriteriaVenture Capital Investment Criteria

Management TeamManagement TeamTrack recordTrack recordRelevancyRelevancyBet on the jockey, not the horse!Bet on the jockey, not the horse!

ConceptConceptSolves real problemSolves real problemFavorable market dynamicsFavorable market dynamicsDisruptiveDisruptive

Unfair advantages & Unfair advantages & sustainable competitive sustainable competitive advantagesadvantages

Proper capitalizationProper capitalization

The Venture Capital Numbers GameThe Venture Capital Numbers Game

Receive 1000s of business Receive 1000s of business plans each yearplans each year

Read 100s of plansRead 100s of plans

Meet with dozens of companiesMeet with dozens of companies

Fund a handfulFund a handful

Portfolio expectations:Portfolio expectations:60% die or go nowhere (living dead)60% die or go nowhere (living dead)30% yield 2-4x in 4-7 years30% yield 2-4x in 4-7 years10% (hopefully 20%) are tremendous 10% (hopefully 20%) are tremendous successes (e.g., 10x, 100x, 1000x!)successes (e.g., 10x, 100x, 1000x!)

How Venture Capital Funds WorkHow Venture Capital Funds Work

General partners (GPs) manage General partners (GPs) manage the fundthe fund

Capital comes from institutional Capital comes from institutional “limited partners” (LPs)“limited partners” (LPs)

Singularly focused: ROISingularly focused: ROI

GPs get an annual feeGPs get an annual fee

Once LPs get investment back, Once LPs get investment back, GPs get a portion of the profitsGPs get a portion of the profits

LPs get the remaining profitsLPs get the remaining profits

Venture Capital EconomicsVenture Capital Economics

VC Fund IX, L.P.

LP 1 GPLP 2

LP 3

PortfolioCompany 1

PortfolioCompany 2

PortfolioCompany 3

PortfolioCompany 4

PortfolioCompany 5

LP 4

$100$100 ManagementManagement

$10$10 PortfolioCompany 10

PortfolioCompany 9

PortfolioCompany 8

PortfolioCompany 7

PortfolioCompany 6

$10$10

$10$10$10$10

$10$10 $10$10$10$10

$10$10

$10$10

$10$10

2%2%

Venture Capital EconomicsVenture Capital Economics

VC Fund IX, L.P.

LP 1 GPLP 2

LP 3

PortfolioCompany 1

PortfolioCompany 2

PortfolioCompany 3

PortfolioCompany 4

PortfolioCompany 5

LP 4

$180$180

PortfolioCompany 10

PortfolioCompany 9

PortfolioCompany 8

PortfolioCompany 7

PortfolioCompany 6

$100$100

$25$25$40$40

$35$35

$20$20

Financing Your VentureFinancing Your Venture

Not all startups require external Not all startups require external fundingfunding

Cash flow comes ultimately and most Cash flow comes ultimately and most importantly from customers, NOT from importantly from customers, NOT from investorsinvestors

Benefits of external fundingBenefits of external fundingCashCash– Faster growthFaster growth– Staying powerStaying power– Competitive positioningCompetitive positioning– CredibilityCredibility

Value-add investorsValue-add investors– CredibilityCredibility– Customer/partner introductions (“Keiretsu” Customer/partner introductions (“Keiretsu”

effect)effect)– Management expertiseManagement expertise

Financing OptionsFinancing Options

Non-EquityNon-EquityPersonal fundsPersonal fundsPersonal debtPersonal debtGrants and awardsGrants and awardsCustomer pre-Customer pre-salessalesVenture leasingVenture leasingReceivables Receivables financingfinancingBusiness loansBusiness loansIn-kind In-kind contributionscontributionsJoint venturesJoint ventures

EquityEquityVenture capitalVenture capitalAngelsAngelsThe “3Fs” – The “3Fs” – Friends, Family Friends, Family and Foolsand FoolsCorporate Corporate direct direct investmentinvestment

Equity is the most expensive form of capital!Equity is the most expensive form of capital!

Major Financing QuestionsMajor Financing Questions

How much?How much?

When?When?

From where / whom?From where / whom?

What terms?What terms?SecuritySecurityValuationValuationControlControlTimingTiming

Raise Money from a Position of Raise Money from a Position of StrengthStrength

Have cash in the bankHave cash in the bank

Prepare to build your company Prepare to build your company without any outside investment without any outside investment (bootstrap)(bootstrap)

Seek to secure multiple Seek to secure multiple competing offerscompeting offers

Raise money when you can, not Raise money when you can, not when you have to (Sun Tzu – “In when you have to (Sun Tzu – “In times of war, prepare for times of war, prepare for peace”)peace”)

Have a call to actionHave a call to action

Seek True Value-Added InvestorsSeek True Value-Added Investors

Understand your businessUnderstand your business

Operating experienceOperating experience

Domain and/or geographic Domain and/or geographic experienceexperience

Rolodex / networkRolodex / network

Relevant portfolioRelevant portfolio

Relevant limited partners (in Relevant limited partners (in your space)your space)

Deep pockets / courage to stay Deep pockets / courage to stay the coursethe course

Fundraising ProcessFundraising Process

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Business Business Plan Plan

SubmissionsSubmissions

Investor Investor PresentatiPresentati

onsons

Term Term Sheet Sheet

NegotiatiNegotiationsons

Final Final DocumentatiDocumentati

onon

FundingFunding

Budget 4-5 months, Budget 4-5 months, or moreor more

Fundraising LessonsFundraising Lessons

Network to gains access to VCsNetwork to gains access to VCs

Don’t get hung-up on Don’t get hung-up on confidentialityconfidentiality

Be persistentBe persistent

Be humble yet confident, and Be humble yet confident, and always courteous and professionalalways courteous and professional

Embrace and learn from rejectionEmbrace and learn from rejection

Be greedy in the long-run (any % Be greedy in the long-run (any % of something > 100% of nothing!)of something > 100% of nothing!)

Believe In Your Idea!Believe In Your Idea!

““The wireless music box has no imaginable The wireless music box has no imaginable commercial value.”commercial value.”– David Sarnoff Associates, in rejecting a proposal for

investment in the radio in the 1920s

““We don't like their sound, and guitar music is We don't like their sound, and guitar music is on the way out.”on the way out.”– Decca Recording Co., rejecting the

Beatles in 1962

““Many of our stockholders have asked me Many of our stockholders have asked me about this new invention by Alexander Graham about this new invention by Alexander Graham Bell called the telephone. While we think Bell called the telephone. While we think it’s an interesting curiosity, there’s never it’s an interesting curiosity, there’s never going to be a market for that technology, going to be a market for that technology, and therefore we have declined the offer to and therefore we have declined the offer to

take a license.”take a license.”– Chairman of Western Union, in its annual report from the late 1800s

““Who the hell wants to copy a document on plain Who the hell wants to copy a document on plain paper?”paper?”– National Inventors Council, as told in 1940 to Chester

Carlson, founder of XEROX

Attributes of a Successful Attributes of a Successful EntrepreneurEntrepreneur

Problem solverProblem solver

DecisiveDecisive

Leader & Leader & motivatormotivator

HumbleHumble

PassionatePassionate

PersistentPersistent

OptimisticOptimistic

ProfessionalProfessional

High integrityHigh integrity

Critical path Critical path doerdoer

Impatient / Impatient / bias toward bias toward action (with action (with analysis)analysis)

Rejoices in Rejoices in others’ others’ victoriesvictories

Focused on the Focused on the long-term goallong-term goal

Closing thoughts…Closing thoughts…

Focus on the long-runFocus on the long-runWhat goes around comes aroundWhat goes around comes aroundFriendships last longer than jobsFriendships last longer than jobsDon’t let greed blind the objectiveDon’t let greed blind the objective

Make the most of the experienceMake the most of the experienceListen & learnListen & learnFailure or rejection is what you make of Failure or rejection is what you make of itit

Entrepreneurship is a lifestyle Entrepreneurship is a lifestyle choicechoice

Balance your risk & returnBalance your risk & returnSeize opportunitiesSeize opportunitiesLife’s short, Life’s short, have fun!have fun!

launching your startup — financing your venture

Economy & Finance

impact of venture

venture capital financing

net new jobs

new net jobs

startup considerations

businesses small businesses

business spin

new companies