stanford etl series (oct 2010)
Post on 21-Oct-2014
2.066 views
DESCRIPTION
Presentation on lessons in starting a companyTRANSCRIPT
Lessons on Starting a Company
From Both Sides of the Table
Mark Suster
Stanford ETL, October 2010
@msuster
Me
Software development at Andersen Consulting
BuildOnline, CEO in London at 31(sold to SwordGroup)
Koral, CEO in Palo Alto(sold to Salesforce.com)
VC in Los Angeles
Getting Started
Have an idea
You don’t have to be a genius
You just need to get started
You need to be passionate about it
And you need to do research
Get a prototype built
The Team
Assemble a diverse team
Biggest dilution comes before you start
Huge premium for taking the first leap
Co-founder myth reinforced by selective bias
Make sure technology is part of your DNA
Raising Capital
Raise capital, but not too much
Start Lean
1. without much flesh or fat; not plump or fat; thin
2. of edible meat containing little or no fat
3. lacking in richness, fullness, quantity, etc.; poor: a lean diet; lean years.
4. spare; economical
You Can “Go Fat” Later in Life
Once product / market fit are clear
Many markets are winner take most
Big tech firms compete much more quickly these days
Believe me – venture capital isn’t dead
Why The ‘Fail Fast’ Mantra Must Fail
1. to fall short of success or in something expected
2. to receive less than the passing grade or mark
3. to be or become deficient or lacking
4. to dwindle, pass, or die away
A Lesson in Branding
Name = URL
Name doesn’t box you in a corner
Be careful about words that mean something else
If possible avoid the three F’s
(Friends, family & fools)
Angels vs. VCs?
The people you work with matters more than the classification of
investor
How do you access investors?
Intros: portfolio, entrepreneurs, lawyers, etc
Getting their money is hard
You need an anchor investor
If you show proof the rest usually follows
Critical Success Factors
Skate Where the Puck is Going
Ship Product
The death of many companies is the inability to ship frequently enough
Test monetization early
The Sausage Factory is Never Pretty
From the outside it looks pretty. From the inside? Not so much
Have fun
Startups are roller coasters, enjoy the ride!
Q & A