1. DON’TBEAF***INGWANTREPRENEUR
VITALYM.GOLOMB
@VITALYG JUNE3rd,2014

2. K E E N P R I N T. C O M
+Investor
C E E D . V C

3. corporate
people
startup
people
P experts in one area
P years climbing ladder
P stable lifestyle
P real responsibilities
P life balance
P generalists
P early start
P cheap lifestyle
P nothing to lose
P nothing else matters

5. so what THE F***
is a startup?

6. A STARTUP IS...
an experiment in search
of a business model- steve blank

7. SCALABLE
STARTUP
transition company
business model found
product/market fit
repeatable sales model
managers hired
break-even
profitable
rapid scale
new senior management
~150 people
“a startup is not a smaller
version of a large company”- steve blank

8. A STARTUP IS A COMPANY
THAT IS CONFUSED ABOUT:
1. WHAT ITS PRODUCT IS,
2. WHO ITS CUSTOMERS ARE,
3. HOW TO MAKE MONEY
- DAVE MCCLURE

9. “A STARTUP’s default
state is #failure. as a
founder, you have to
work to unfail it.”- VITALY M. GOLOMB

10. a little distraction

11. THE Ballmer peak

12. why would you want to
start a company?

13. get good grades
go to a good college
get in a good company
get regular promotions
retire, play golf, die
normal career

14. startup career
-if successful-
what people think
it looks like
what it really
looks like

15. entrepreneurship
is a mental disorder

16. but it takes a
little crazy...
to change
the world

17. so, why are youdoing it?

18. for the
money?

19. for the IPO money?

20. 50
100
150
200
250
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
number of tech
ipos since 1999
26 <26

21. funded startup
success rate
30% fail
30%
unprofitable
30%
somewhat
profitable
10% big
success

22. by the way...
#failure in
startups is
overgloried

23. failure is for
losers
- Beck

24. 1st time founder 18%
repeat failed founder 20%
repeat successful founder 30%
the odds are against you

25. you’ll get acquired if
you are lucky and good

26. freedom?

27. normal job:
one boss

28. startup:
every user
is your boss

29. have a family?
they will suffer

30. “as a startup ceo, i slept
like a baby. i woke up
every 2 hours and cried.”
- ben horowitz

31. feeling
defeated
yet?

32. founder and team morale
jess lee - “why startup founders are always unhappy”

33. good news:
you can improve
your chances

34. find a problem
you can’t live
without
solving

35. don’t build technology looking
for a problem to solve
solve a painful problem

36. what is all this lean bullshit?

37. lean = quick iterations

38. more chances to
solve the problem

39. more chances to #unfail

40. so what’s a goodstartup?

41. firstthingsfirst

42. nothinG matters
more than traction

43. solves a painful problem
for a specific customer

44. how can you be sure you’re
solving a problem?

45. how is it currently
being solved?

46. no competitors
=
no problem
=
no market

47. stop coding
get out of the building
talk to your customers
face your fears
validate assumptions

48. HOWAREYOUDIFFERENT
ANDBETTER?
HARD?EXPENSIVE?SUCKS?

49. F’IN

50. ANDGROWINGFAST

51. what’s your business model?

52. symmetric
customer pays
for experience

53. asymmetric
3rd party pays
for customer

54. DOES IT scale?

55. $1,000,000
$2,000,000
$3,000,000
$4,000,000
Craigslist Apple Google Facebook Amazon McDonalds
revenue
per employee$3.6M
$2.15M
$1.25M
$1.1M
$691K
$64K

56. don’t forget:
you are building a
repeatable business

57. measure everything

58. internet-driven
customer acquisition

59. main ingredient: team

60. hiring is hard

61. O much money
O stability
O support structure
O a long-term plan
P stock
P flexibility
P chance to make
a difference
what you
don’t have
what you
do have

62. BUSINESS
DESIGN ENGINEERING
balanced startup team

63. what is your
unfair advantage?

64. ACCOMPLISHMENTS
MONEY RAISED?
PARTNERSHIPS?
GROWTH?

65. THESILICONVALLEYFUNDINGSTACK
BOOTSTRAP/FriendsFamily&Fools
ACCELERATORS
ANGELS/SEEDVCs
$100M+VCFUNDS
GROWTHEQUITY
circa 2014
M&A/IPO

66. BOOTSTRAP
ACCELERATORS
ANGELS/SEEDVCs
$100M+VCFUNDS
GROWTHEQUITY
EUROPEANFUNDINGSTACKcirca 2014
/FFF
M&A/IPO

67. 2001 DOT COM CRASHUS VC FUNDS RAN AWAY FROM EUROPE
few, STRONG EUROPEAN VC FUNDS SURVIVED

69. …andpre-date
LARGEFUNDTHESISAREBASED
ON$5M+FIRSTROUND

70. LIMITEDBIGDEALS
+
LIMITEDEXITS
=
MOSTREGIONAL
FUNDSTOOBIG
TOPROVIDEGOOD
RETURNS

71. YESTERDAY’SSEEDISTODAY’SSERIESA/B

72. YESTERDAY’SIPOsARETODAY’SACQUIHIRES

73. SOURCE: STEVE BLANK

74. SOURCE: SEED DB
MEDIANEXIT=$20M

75. EUROPEANECOSYSTEMDRIVER&BRIDGETOSILICONVALLEY

76. INVESTINTHESEEDROUNDSOFTOPEUROPEAN
STARTUPSWITHSPECIALEMPHASISONTHE
HIGH-POTENTIALCEEMARKET
MISSION

77. EUROPEPRODUCESHIGHER
MULTIPLESTHANU.S.

78. EXITARE25%SMALLER,BUT…
ENTRYVALUATIONSARE3-4XLOWER

79. EUROPEPRODUCES
1/2ASMANYEXITSASU.S.
AND1/3OF$100M+EXITS
WITHONLY20%OFU.S.VC

80. MEDIANCASH-ON-CASH
$100M+EXITMULTIPLE
4.5X
US
7.2X
EUROPE
2005-2011 SOURCE: EARLYBIRD, DOW JONES VENTURE SOURCE

81. REPEATENTREPRENEURS
INVCFUNDEDCOMPANIES
SOURCE: EARLYBIRD GLOBAL ENTREPRENEURSHIP REPORT
1 9 9 8 2 0 0 7
93%NEW
7%REPEAT
50%NEW
50%REPEAT

82. FUND+ECOSYSTEMDRIVER
INVESTMENTSCONFERENCES & EVENTS EDUCATIONAL PROGRAMS
LEADINGSTARTUP
GATHERINGINCEE
BRIDGE TO SILICON VALLEY REAL VALUE ADD
physicalpresence,establishednetwork
and partnershipswithtopinvestors,
platforms,andmajorenterprises
hands-onmarketingandgrowth
consultingforportfoliocompanies
connectiontoaworldofmentors

83. DESIGN//BUILD//FUND

84. want the slides?
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