The Myths of Innovation

Benjamin Joffe | Plus Eight Star | IGNITE, Paris | 2009.09

The Myths

1. Entrepreneurs have original ideas

2. It’s all about trying enough

3. The vision is clear from day 1

4. Entrepreneurs make millions

5. Innovation is always good

When was it invented?

EuropeGutemberg | ~1450

KoreaMetal | ~1230

ChinaWooden | ~1040

Book by Scott Berkun(Same title)

Published: 2007

Even at Ignite!

• In 2003!• Location-based• Avatars• Virtual itemsOther user’s

avatar / distance / nickname

Mobile SNS in Japan

I heard that before!

Definitions

Idea(e.g. Chocolate + Hemp)

Inventor(Prototype)

Entrepreneur(Business)

Winner Bias

They talk but don’t race

We don’t keep track of how many start

DNA Bias“You don’t change horses mid-race”

He changed his ride!

(This one has no rider)

Nobody knows the track’s shape

Examples from Asia

#1 SNS in Korea #2 SNS in China #1 SNS in Japan

US$100M in 2008 Raised US$500M US$120M in 2008

Changing riders

#2 SNS in China #1 SNS in Japan

Gave most shares to

keep going

Sold for US$2mln

Started Mixias an intern!

Yong Hyoung

Founder

Cyworld

Wang Xing

Founder

Xiaonei

Batara Eto

CTO

Mixi

#1 SNS in Korea

Changing diet

Ads CPA Virtual goodsInitial business model?

#1 Mobile SNS in Japan

US$250M in 2008IPO: US$1.2bln

Changing media + biz model!

#2 Mobile SNS in Japan

US$60M in 2008IPO: US$1.4bln

Sticking to it

IM was not making money and

our competitors moved to other

ventures. I did not have other

ideas so I stuck to it. Pony Ma

Founder & CEO

Tencent (QQ)

Tencent

#1 SNS in China

US$1 bln in 200890% From Virtual Goods

(40% Net Margin) Market capUS$30 bln

(more than eBay)

Too innovative?

“The owls are not what they seem”

IGNITE Boise Talk

Brian Bothwell

July 16, 2009

“The owls are not what they seem”

It’s Iron Man!

Timing

Infrastructure

Finance

+

Adaptability

Learn more about “Innovation Arbitrage”

Merci !

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