Startups Today (Keynote at Auburn, April 2013)
- 1. Startups Now how five innovations have changed the startup world, forever Keith McGreggor Director of VentureLab @
- 3. s m o w ls i ty e te dsh Too ur s s s a y c oi ce Sy l ro dia or et x Se ckn startups ur e ted se et e pt dN efle ta so it a n N M c e e e Ba n lan l R e finter A nI on d ar 21 R il to At ixe B eI eC u M AI P Th G Bel l a ch rn ed ol a Te e he C i th ck ple ca oo rg ou h eo SF work S Lo Ap Co Ya G N ele ew h ic h dr ra life M An Sa school S hD BS M P 1980 1990 2000 2010
- 5. GT Research Distribution EACH YEAR AT Over half a billion dollars total R&D on campus for FY2009! College of Computing Other Research Centers College of Sciences College of Engineering GTRI > $500,000,000 / year 7/14/09 Enterprise Innovation Institute 12
- 6. research is the transformation of money into knowledge
- 7. EACH YEAR AT annual invention disclosures 400 unencumbered inventions 250 VentureLab startup ideas 25 license ideas 200 early ideas 25
- 8. at least one new invention every day
- 9. innovation is the transformation of knowledge into money
- 10. Decisions { LICENSE Inform Office of Technology 80% Licensing START-UP Assign to Catalyst 10% LIFESTYLE COMPANY Advice team on viable commercialization strategies. Research SCIENCE PROJECT Put technology on hold Contact professor every 10% six months for an update
- 11. today inventions reviewed 250+ new projects 35+ ongoing projects 83 new companies created est. 30 external investment in new and $185M existing VL companies in 2012 total of all investments $700M
- 13. NASDAQ 5000 4000 3000 2000 1000 1996 1998 2000 2002 2004 2006 2008 2010 2012
- 15. we know something now that we didn’t know before ...
- 16. we know something now that we didn’t know before we know how to build startups
- 17. we know something now that we didn’t know before engineer we know how to build startups
- 18. five innovations
- 20. what is a company?
- 21. A organization which sells a product or service in exchange for revenue and profit
- 22. A bit of history...
- 23. Dutch West India Company 1620
- 24. 1856 - First Org Chart
- 25. 1908
- 26. Tools for the 20th Century “Century of the Corporation”
- 27. ... but what about startups?
- 28. Startups are a Smaller Version of a Large Company
- 29. Startups are a Smaller Version of a Large Company
- 31. Startups are something else.
- 32. five innovations what is a startup?
- 33. innovation A startup is a temporary organization designed to search for a repeatable and scalable business model.
- 35. Startups Business Model Companies Product/Service
- 36. Old School of Startups (before 2010) ...
- 37. All I Need to Do is Execute the Plan
- 38. All I Need to Do is Make the Forecast
- 39. Step 1. Write Business Plan Step 2. Make 5-year Forecast Step 3. ??? Step 4. PROFIT!
- 41. Crystal ball... 2007 2013
- 43. as a general rule... Business Plan is a work of FICTION
- 44. Business Business Model > Plan
- 45. five innovations what is a business model?
- 46. innovation Business Model Generation infrastructure offer customers activities relationships partners value segments prop. resources channels financial cost structure revenue streams
- 47. the Canvas infrastructure offer customers activities relationships partners value segments prop. resources channels financial cost structure revenue streams
- 48. still fiction... infrastructure offer customers ? ? ? activities ? relationships ? partners ? value segments prop. ? ? ? resources channels ? ? financial ? ? cost structure ? revenue streams ? ?
- 49. ... and we want facts! infrastructure offer customers ✔ ✔ ✔ activities relationships ✔ ✔ partners ✔ value segments prop. ? ✔ ✔ resources channels ✔ ? financial ✔ ✔ cost structure ? revenue streams ? ✔
- 50. How?
- 51. pick one... infrastructure offer customers ? ? ? activities ? relationships ? partners ? value segments prop. ? ? ? resources channels ? ? financial ? ? cost structure ? revenue streams ? ?
- 52. design experiment ... offer customers A controlled experiment ? generally compares the results obtained from an experimental ? relationships ? sample against a control sample, which is practically identical to the experimental ? value segments sample except for the one prop. ? aspect whose effect is being tested (the independent ? variable). channels ? ? financial ? ? revenue streams ?
- 53. run it in the world ... offer customers A controlled experiment ? generally compares the ? relationships ? results obtained from an ? value segments prop. ? ? channels ? ? financial ? ? revenue streams ?
- 54. ... and iterate! offer customers A controlled experiment generally ✔ compares the ? relationships ? results obtained from an ? value segments prop. ? ? channels ? ? financial ? ? revenue streams ?
- 55. five innovations the scientific method applies to business
- 56. innovation ©2006
- 57. the key idea There are NO FACTS in the building! 57
- 58. the big secret Conduct 100+ Interviews 58
- 59. 59
- 60. A man who carries a cat by the tail learns something he can learn in no other way. 60
- 61. Why do Startups fail?
- 62. Startups don’t fail because they fail to make something...
- 63. Startups don’t fail because they fail to make something. Startups fail because they fail to make something someone wants to buy from them.
- 64. Business Model infrastructure offer customers activities relationships partners value segments prop. resources channels financial cost structure revenue streams
- 65. Product / Market Fit infrastructure offer customers activities relationships partners value segments prop. resources channels financial cost structure revenue streams
- 66. “If you build it, he will come...”
- 67. Tools for managing Tools for managing Engineering Risk Customer Risk Waterfall Development ? Porter’s Five Forces SWOT Analysis Project Management Baseline Risk Assessment Stress Testing Concentration Methodology Quantitative Risk Management ...
- 68. five innovations how to reduce customer risk
- 70. Customer Discovery Startups Companies Search Execute
- 71. Customer Discovery Understand the Problem then Develop the Solution
- 72. This may sound familiar... Understand the Problem then ... but it’s actually Develop the Solution the inverse
- 74. TRUTH Customers don’t care about (your) technology. Customers just want their problem solved.
- 75. Customer Discovery key idea Customer POV
- 76. Customer Discovery WHO CARES? WHY will they BUY?
- 78. Customer Gains Jobs Problems Needs Pains
- 79. Customer Gains Jobs Problems Archetype Needs Pains
- 80. Something Makeable... Gain Creators Products & Services Pain Killers
- 81. Value Proposition Gain Creators Products & Services MVP Pain Killers
- 82. Product / Market Fit infrastructure offer customers activities relationships partners value segments prop. resources channels financial cost structure revenue streams
- 83. How do you know you have product / market fit?
- 84. METRICS
- 85. Vanity METRICS
- 86. Vanity METRICS
- 87. five innovations build to measure measure to learn learn to build
- 91. MVP Minimum Viable Product HIGH LOW FIDELITY FIDELITY Built to LEARN Not to SELL
- 93. the Pipeline $$$
- 94. METRICS AARRR
- 95. acquisition activation retention revenue referral
- 96. the equation that matters... infrastructure offer customers activities relationships partners value segments prop. resources channels financial COST < REVENUE
- 97. ... is this one: CAC << LTV acquisition activation retention revenue CAC LTV referral
- 98. CAC << LTV if and COST < REVENUE then COMPANY!
- 99. five innovations define: “startup” business model generation the scientific method customer discovery lean startup methodology
- 100. Business Model Generation Customer Discovery Lean Startup Methodology Startup Engineering
- 101. one more thing...
- 102. Business Plan Competition 1995-2013
- 103. Business Model Competition Fall 2013
- 104. 75 Fifth St NW, Suite 202, Atlanta GA 30308 venturelab.gatech.edu @venturelab / @keithmcgreggor keith@venturelab.gatech.edu