How to hug a startup without crushing it
Download as PPTX, PDF1 like975 views
The document outlines strategies for effectively partnering with startups without overburdening them. It emphasizes understanding the startup's challenges and aligning expectations with clear deal structuring and execution management. The importance of communication and regular check-ins is also highlighted to ensure the partnership is successful and beneficial for both parties.
How to hug a startup without crushing it
- 1. How to hug a Startup without crushing it Andy Goldstein
- 2. “We are both talking about ‘time’, but we are holding a stopwatch & you are looking at the calendar”
- 3. Andy Goldstein Executive Director >32 years of operational & entrepreneurial experience • Acceleration & Entrepreneurship • Digital Transformation • Startup Incubation Serial Entrepreneur/ Board Director: Avanquest, Carpooling.com Co-Founder/ Managing Director
- 4. Agenda Understanding the Startup‘s Challenge Understanding YOUR Needs Execution Deal Structuring
- 5. Understanding the Startup‘s Challenge What is a profitable deal for the startup? Understanding their margin calculation More work for more money? Taking startups in the right direction Do they have the internal resources to execute the deal? If not, they need to calculate the incremental cost in both time and money Who is the deal leader and what is the leader‘s role after closing?
- 6. Understanding YOUR needs What exactly is the problem that you need solved? What is the solution worth to you? Do you have a budget? Are you the decision maker, if not will he/she commit? What is the timeline for delivery and how does this fit into the startup‘s and your key timelines? What role do legal and purchasing play? Do the „Betriebsrat“ and IT need to approve?
- 7. Deal Structuring Work with a term sheet before moving to contract Clarify all key points with the deal maker & decision maker Write the contract Startups can agree to almost anything except: Cancelation for convenience Indemnity beyond the amount of the contract Work for time Person specific requirements Offer immediate or early payment Allow automatic renewal after a reasonable exit period Always look for the next deal
- 8. Deal maker must follow through on the execution management Assign an internal champion as soon as possible Set up regular meetings with the Startup and be sure there is a communication partner Encourage them to communicate problems immediately Listen to the casual observations of the team members working on the deal Focus on easy wins and communicate those Know who needs to be the hero and make sure he/she is one Watch the deadlines and make sure they are correct and needed Startup‘s Attitude: When the client says “jump“, ask “how high“ Don‘t ask the Startup to compromise their margin Execution
- 9. Thank you! Andy Goldstein Geschäftsführer Tel: +49 (0)89 2180 2231 Fax: +49 (0)89 2180 3809 goldstein@lmu.de Giselastraße 10 80802 München www.entrepreneurship-center.uni-muenchen.de Questions?