Tuesday, August 31, 2010
Saturday, August 28, 2010
Monday, August 23, 2010
Friday, August 13, 2010
Thursday, August 5, 2010
How to create a global phenomenon - Tim Farris
The 4-hour work week
The Guiding Principle:
Whenever you find yourself on the side of the majority; it's probably time to think and reflect about what you are doing!
Book was turned down by 26 out of 27 publishers.
The assumptions:
consistent suggestions: radio blogs, most stuff doesn't make it
The goal:
20,000 earlyvangelists in 2 weeks
"surround sound" effect
Suggestion: Read "1,0000 True Fans"
Data is King
7am and 6pm PST on Tuesday, Thursday, Saturday.
Sometimes data that is easily obtained can be extremely valuable, technical people sometime underestimate this
1) Indirect
2) Direct
3) Meta
Brian Oberkirch...
43 folders
Robert Scoble:
Sell around the product
PPC --> Phenomenize, Polarize, Communitize
Lifestyle design
From Geek to Freak: How I Gained 34 lbs of muscle in 4 weeks
Get satisfaction
Blog post should be around 500 to 750 pages... but can be longer if you get people's attention early on.
Remove the date, put it at the bottom...
Metrics in one page
1) measure the fewest things possible 80//20
2) a/b tests optimize me to produce meaningful changes.
3) vanity metrics (if you don't know don't speculate) --> actionable metrics (stick to actionalbe metrics)
4) create a feedback culture.
steps: acquition, retention, referral
cost per acquisition (CPA)
ARPU + Lifetime Value (LV)
Viral coefficient (10 new : 10 orig = > 1)
first giving:
donars chose:
slinkset
google moderator
weight loss: (remove negativity)
Gyminee
The question people always ask when they goto your site is... How will I use it?
Keep the UI design very simple and straight forward....
How to Create a Global Phenomenon - David Rose
SBIR = Small Business Innovation Research
SMTT = Small Business Innovation Research
Phase I: up to $100,000
1 in 4 receive this
Phase II: up to $750,000
Phase III --> you have to get it yourself
- Bootstrapping is the best way to finance a company!
- Banks aren't in the business of funding startups --> they don't want to take the risk.
- Startups can't get loans!! --> only if you personally promse to pay back (can't get an unsecured loan).
- Raising equity: selling part of your company and gaining a partner --> this is really risky, close to selling your soul.
- YOU will be your first investor...
- Friends, and family should be second...
- Angel investors should be third...
- Venture capitalists are next
Venture capitalists --> professional money managers who invest large pools of other people's money for an economic return.
LP ==> Limited Partners (losses limited only to the extent of the money they lose)
GP ==> General Partner (responsible for any debt incurred by the firm)
Angel Investors --> Rich(ish) people who invest their own money for economic and other reasons (but not billionaires typically)
VC's get 2% of the committed funds for running the fund for fancy dinners, etc plus 20% of the upside in returns
After the dot-com crash, tons of LPs lost money and talked to the VC fund.. where's my money! don't lose my money! then VCs stopped leading money, thus there was almost NO VC money available after the dot-com crash.
Early, Late ---> Angels 55,000 deals mostly early-stage
Idea ---> Plan ---> Prototype ---> Beta ---> Sales ---> Profitability
Friends, Family & Fools $100k --> Idea, Plan
Angel Investors $300k to $500k --> Idea, Plan, Prototype, Beta
SBIR/STTR Grants --> $100k to $750k
Angel Groups $500k to $1-$3 million
Strategic Partners --> corporate partners, deals between companies, etc (google buying admob, etc)
Venture Capital --> $3 - $4, $10 million (show me sales, profitability)
Banks --> only once you are profitable from $0 to tens of millions
IPO -> $50M to $100M
20 - 40% is given up after each round of financing
US Early Stage Financing
Govt Grants $2 b
Angel investing $20 B
Venture Capital $25 B
600,000 companies started this year, here's the break down:
350,000 founders
200,000 friends and family
50,000 angels
1,000 venture capital
Profile of an Angel: age 57
masters degree
15 year entrepreneur
2.7 ventures founded
9 years investing
10 investing
2 exits/closures so far
10% of wealth in angel investments
"Accredited Investor"
$1 million in assets (not including home) or
$200,000 annual income in past two years
Secret Economics of the Angels
Well managed angel funds return 25- 30%
$1 million for angel investments distributed over 10 deals
1.25 ^ 6 = 3.8 x ROI - Return on Investment
5 will go no where = 0 x 1/10 x 5 x 0 = 0.0
2 will get my money back = 1 x 1/10 x 2 x 1 = 0.2
2 will get me 3x my money = 3 x 1/10 x 2 x 3 = 0.6
1 your deal must return 30x = 30 x 1/10 x
Execution is a multiplier of an idea
How good of an idea?
Awful = -1
Weak= 1
So-So= 5
Good= 10
Great = 15
Brilliant= 20
Execution
None = $1
Weak = $1,000
So-So = $10,000
Good = $100,000
Great = $1,000,000
Brilliant = $10,000,000
brilliant Idea x So-so execution = $200,000
So-so Idea x Brilliant Execution = $50,000,000
Business Plan
Executive Summary
One Pager --> Angel soft creates this. 140 characters?
Create an email pitch.
You must network to get cash for your idea.
Create a presentation
Create a video
What is your elevator pitch
The elevator pitch
what's exciting
what you do
who you are
keep it simple
aim for 30 seconds
have it down cold!
Wednesday, August 4, 2010
Tom Byers - High-Growth Technology Ventures - Stanford
The relationship between Stanford and Silicon Valley is just amazing, it's been going on for decades. It's an amazing ecosystem of innovation and company creation.
Top 10 Elements of Technology Entrepreneurship for High-Growth Innovation
Built to Last:
Good to Great
Ideas: Product and Market Strategy
Talent: Team and Culture
Capital: Cash Flow and Venture Finance
The best time to start a company is during a down turn.
Environment and Sustainability
Security and Economic stability
Digital and Physical infrastructure
Human Health and Education
Waves of Innovation:
1st, 2nd, 3rd, 4th, 5th, 6th wave.
What is your competitive positioning and how are you developing your partners and customers?
Blank's customer development model
Steve Blank
Show me that the customers really have this problem..... You need to make sure that customers really need this service..??
Articulate a customer development process to verify that you actually have a viable customer....
Crossing the Chasm
TYPES OF RISK:
(WHICH DO YOU HAVE. . . )
TEAM RISK
CAPITAL RISK
MARKET RISK
TECHNOLOGICAL RISK
Bill Sahlman
Entrepreneurial Skills presentation by David Rose
People
Financial Management
Management
Production
Operations
Financial Management
Sales
Angelsoft --> it took 4 years to get people to buy into the free use of the Angelsoft network.
what investors look for:
integrity
passion
experience
knowledge
skill
leadership
commitment
vision
realism
coachability
Angel investors fund about 2-3% of the people that approach them.
Venture Capitalists fund about 1 out of 400 businesses which approach them.
Bootstrapping businesses are absolutely the best way of creating a
business.
Scott Shane:
The Illusions of Entrepreneurship
Outliers have to be Hypomanic "enough"
Cultural tradition:
impacts the level of entrepreneurship:
In Italy if you fail you lose your social status
In England if you fail it's a BADD thing
In Silicon Valley if you fail, or quit your job, most people says "congratulations"
"Rewarding" and encouraging failure is vital to creating a tradition and culture of entrepreneurship - innovation.
Personal role models ---> find a personal role model
Opportunity
Training -->
The entrepreneurial life ---> What's it like???
It's definitely a challenge:
FLOW "in the moment" you "feel it" --> http://en.wikipedia.org/wiki/Flow_(psychology)
Work --> Requires a lot of it!
Dedication
Perseverance
Exhilaration
Agony --> bankruptcy is not fun... It took 5 years to get angel soft accepted...
Accomplishment
Failure
Sacrifice --> find balance don't sacrifice your relationships
Control --> you have control and a flexible schedule
Powerlessness --> it's a big world out there which you don't have control over.
Extraordinary Satisfaction -->
The Entrepreneurial Spectrum:
Natural --- Ready -- Potential -- Fearful -- Never
(Richard Branson) most in the middle (scared)
Entrepreneurial training --> can move most people from never, toward fearful toward ready....
singularityu David Rose --> The flow of entrepreneurship: The appropriate level of challenge http://ping.fm/Zxwq7(psychology)
Monday, August 2, 2010
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