How to Start a Deep Tech Startup
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The document is a guide on starting a deep tech startup by Michael Rumiancau, CEO of Friendly Data, outlining key elements such as fundraising, hiring, product management, and marketing strategies. It emphasizes the importance of building a strong team, understanding growth engines, and achieving long-term customer retention. Additionally, the document provides insights on choosing accelerators, fundraising strategies, and gaining media attention for startups.
![THE [STARTUP] WORLD IS
CHANGING](https://image.slidesharecdn.com/how-to-start-180118122619/85/How-to-Start-a-Deep-Tech-Startup-14-320.jpg)
How to Start a Deep Tech Startup
- 1. IMAGURU STARTUP HUB, MINSK. JAN 17, 2018 H O W T O S T A R T A D E E P T E C H S T A R T U P M I C H A E L R U M I A N C A U , C E O @ F R I E N D LY D ATA michael@friendlydata.io
- 2. FRIENDLYDATA: THE NATURAL LANGUAGE INTERFACE TO DATABASES
- 3. I N V E S T O R S A N D PA R T N E R S F U N D I N G : $ 6 0 0 K T E A M O F F I C E S : S F, M I N S K T O P P R O D U C T I N A P R I L , 2 0 1 7 S TA R T U P O F T H E Y E A R I N B E L A R U S , 2 0 1 7
- 4. • Raising money • Hiring great people • Building a product roadmap • Managing well • Training new employees • Selling MOST OF US ARE NOT BORN WITH THESE SKILLS
- 6. • Advertising = you are buying leads. • Spend a $1.00 to acquire a customer, make > 1$ • The most expensive. THE PAID ENGINE OF GROWTH
- 7. • Word of mouth, your product advertise itself. • 10 customers bring you 11 new customers. • Difficult to build intentionally. THE VIRAL ENGINE OF GROWTH
- 8. • Focus on a long term retention and low churn rate. • CAC > 2-3x LTV. • The slowest. THE STICKY ENGINE OF GROWTH
- 9. • Solving a major problem • Big (Rich) Market • Entry barrier • Scalable business model • Team B2B/DEEP TECH SUCCESS CRITERIA
- 10. HOW TO WIN COMPETITION • Create a strong Brand • 10x times better/faster Technology • Network Effect • Community • Team
- 12. • It’s OK to pay 3x more for a resource that is 3x better. • Hire key experts in your field as soon as possible. • Team is your main asset. HOW TO HIRE
- 13. • It sales is not selling it’s about explaining your value • You have to be in a full-time sales mode • Build - > Sale Sale - > Build HOW TO SALE
- 14. THE [STARTUP] WORLD IS CHANGING
- 15. 2003 2013 2018
- 17. DOES IT MAKE SENSE TO GO TO ACCELERATOR? • YC, 500 Startups - shut up and apply! • Alchemist,AngelPad, (Techstars) - maybe. • Corporate, Industry and everything else - it depends.
- 18. HOW TO CHOSE AN ACCELERATOR • Determine your own goals • Research their team and mentors • Research their portfolio and ask feedback
- 20. HOW TO RAISE MONEY
- 21. AI/Data/Deep Tech startups are never going to grow like consumer ones, and they need a different approach to investing and go2market. DEEP TECH STARTUPS ARE DIFFERENT
- 22. • Talk to relevant investors (fund size, stage, vertical, geography). • How much? To achieve the next milestone and raise next round (or to profit). • Fundraising is a number game. FUNDRAISING
- 23. THE MATHS BEHIND VENTURE CAPITAL
- 24. A TYPICAL SEED VC FUND • $50M fund (Cost ~ $10M) • $40M left to be invested in 20 startups ($2M/company) • The min respectable return on a Fund is 120% in 5 years • Expected $60M in 4-5 years
- 25. A TYPICAL OUTCOME • 10 companies dead. 10x0=0 • 5 will return the investment. 5x$2M=$10M • 3 will provide ROI (at least 2x). 3x2x$2M=$12M • The last 2 should return ~$40M ($60M-$22M), eg 10X
- 26. VC RULES OF THUMB • The goal is to reach a 10X return on at least one of 10 investment. • Fund size ~ desired valuation at exit.
- 27. • TEAM & TECH. $5-50M • PRODUCT. $25-250M • BUSINESS. $100M - $XXB M&A TYPES
- 28. HOW TO GET PRESS FOR YOUR STARTUP
- 30. • Warm intros, cold emails • News events: funding, product launch, accelerator • Tell a story • Find the right journalists • Determine your own goals HOW TO GET PRESS FOR YOUR STARTUP
- 32. IF YOU’RE NOT HERE… YOU'RE NOT GOOD ENOUGH
- 33. THANK YOU! micrum.me Subscribe and get my insights on being an entrepreneur and building a deep tech company in Silicon Valley: