Fresh look at the Startup Failure

1. STARTU
P
FAILURE
IS NOT WHAT
YOU THINK
IT IS
Sergey L. Sundukovskiy, Ph.D.

2. FAILURE
“I’ve missed more than 9,000
shots in my career. I’ve lost
almost 300 games. 26 times I’ve
been trusted to take the game
winning shot and missed. I’ve
failed over and over and over
again in my life, and that is why I
succeed.”
-Michael Jordan

3. FAILURE
“Failure should be our
teacher, not our undertaker.
Failure is delay, not defeat. It is
a temporary detour, not a dead
end. Failure is something we
can avoid only by saying
nothing, doing nothing, and
being nothing.”
-Denis Waitley

4. Sergey L. Sundukovskiy
Raken, CTO/CPO & Founder
Companies: Capital One, PushPoint, Cinsay, LowerMyBills,
DIRECTV, CBW
Interests: Entrepreneur, Speaker, Mentor, Advisor
Education: BA CS, MS IT, PH.D. Business
Sergey L. Sundukovskiy, Ph.D. has over 20 years of experience
serving in capacities of Chief Technology Officer, Chief Information
Officer and Chief Product Officer. Sergey specializes in
implementation of subscription based high volume SaaS platforms,
with strong emphasis on early stage product development and
market deployment. Specific areas of expertise include A/B Testing,
Big Data, Video Management, eCommerce, RTB platforms and
Cloud Computing. Education: B.A. in Computer Science from the
University of California, San Diego, and an M.S. in Information
Technology from the University of Liverpool. Ph.D. in Information
Technology Management from the School of Business and
Technology, Capella University.
INTRODUCTION
BACKGROUND &

5. HISTORY OF FAILURE
aliens Did NOT build pyramids
Testing (Success)Testing (Failed)Testing (Failed)

6. SERIAL
FAILURE
The Story of
one dissertation

7. “I find Your Lack of Testing
disturbing”
7
UNFAIL
TESTING

8. Complete Failure
Lights Out
FAILURE
TYPES

9. Partial Failure
Acquihires
FAILURE
TYPES

10. Failure on the
Way to Success
Lose the Battles Win the War
FAILURE
TYPES

11. Complete Failure
Fills Ecosystem with
Experience
WHY IS
FAILURE
IMPORTANT?

12. Partial Failure
Second Lease on Life
WHY IS
FAILURE
IMPORTANT?

13. Failure of the Way
to Success
Completes Success Cycle
(Failure -> Learning ->
Success)
WHY IS
FAILURE
IMPORTANT?

14. why is failure
so Common?
Failing is
SO HOT
right now!
REASONS
FOR FAILURE

15. what does Failure Look Like?PERFECT
FAILURE • No Addressable Problem
• No Market
• No Effective Team
• No Customers
• No Product
• No Product Positioning
• No Money

16. Beginning of the
Startup journey
REMARKABLE
SIMILARITY

17. End of the
Startup journey
REMARKABLE
SIMILARITY
WOAH…
Deja Vu!

18. building a Startup
An Exercise In Unfailure
BUILDING
A STARTUP

19. • Constant Failure
• Must Have the Right Tools
• Impossible to Get Lucky and Win
• Team Gets It Done
• It Is Even More About Execution
• It Is All About Micro-Pivots
WHAT DO
STARTUP
BUILDING
AND GOLF
HAVE IN
COMMON?

20. Micro-Pivots after
Many Failures in…
ROAD TO
SUCCESS

21. Unfail startup
Founding Team
We’ll hit
something,
eventually.
ROAD TO
SUCCESS

22. Unfail minimal
Viable Product
ROAD TO
SUCCESS

23. Unfail product
Marketing
ROAD TO
SUCCESS

24. Unfail customer
Acquisition
ROAD TO
SUCCESS

25. • Too Many Steps to Get There
Wrong Way To Unfail
(Tail of two Extremes)
• Hole in One Win Strategy
• Listening to Too Many People at
Once
• Giving Up Too Soon
UNFAILURE
STRATEGIES

26. diving Lesson
GIVING UP
TOO SOON
KEEP
GOING!

27. • Have Big Targets To Hit
Right Way to Unfail
• Unfail Most Important Things First
• Change Strategy at the Right Time
• Have Very Clear Measuring
Strategy
UNFAILURE
STRATEGIES

28. Malcolm Gladwell
Big Targets
BULLETS
BEFOR
E
CANNONBALLS

29. Difficult Failure Recovery
• Team
• Operational MO aka Process
• Conflict Resolution
• Product Focus
FIRST
THINGS
FIRST
st

30. Change of Direction
(Tripwires)
• High Churn
• High Acquisition Cost
• Low Viral Score
GOLDEN
RULE

31. Jim Collins
Return on Luck
GET
LUCK
Y

32. Do NOT Need to Outrun a
Shark, Just Your Buddy
NEAREST
DANGER

33. First Who, then
what, then how
UNFAIL
FOUNDER
S

34. CO-FOUNDER
UNFAIL
CRITERIA
(cont.)
BAD
NOT GOOD
GOOD

35. • Complementary Skillset
• Worked Together Before
• Similar Work Ethic
• Similar Commitment Level
• Similar Conflict Resolution Style
• Can Disagree and Commit
• Ideal Number of Co-Founders is 3
CO-FOUNDER
UNFAIL
CRITERIA

36. Get the Right People
on the bus
UNFAIL
TEAM

37. Team Building
UNFAIL
STRATEG
Y
Weakest Link Problem
superstars do not save the
day

38. T – Shaped Hire
IDEAL
Hire

39. Plan for failures
UNFAIL
PRODUCT

40. • Wireframing
• Mocking
• Clickable Prototype
• Dynamic Prototype
• MTP
• MVP
UNFAIL
PRODUCT
LIFECYCLE TESTING
TESTING
TESTING
TESTING
TESTING