lean startups, autm 2014 startup class
Post on 18-Oct-2014
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DESCRIPTION
A brief presentation on Evidence-based Entrepreneurship, given as a part of AUTM 2014's Startup Class.TRANSCRIPT
Keith McGreggor, Ph.D. Director of VentureLab
evidence-based entrepreneurship
Lean Startups
#1 early stage incubator#1 engineering/science incubator
#2 overall
innovations reviewed 250+/year
new projects 35+/year
current projects 100+ active
companies created 150+
total of angel & VC investments in VL companies $730M+
13 cohorts / 5 nodes300+ NSF teams12+ teams
since June 2012
22+ cohorts / 7 locations250+ teams
400+ entrepreneurs
since May 2012
Lean Startup?
Lean Startup is now known as
Evidence-based Entrepreneurship
A new way of thinking about and designing startups
engineering
three big ideas
a definitiona framework
a methodology
three big ideas : Definition
what is a startup?
three big ideas : Definition
We used to think A startup is a smaller
version of a large company.
? ✓
Startups Companies
A startup is a temporary organization designed to search for a repeatable and scalable business model. - Steve Blank
three big ideas : Definition
Search Execute
Startups Companies
A startup is a temporary organization designed to search for a repeatable and scalable business model. - Steve Blank
three big ideas : Definition
Core Idea or TechnologyResearch Team
Core Idea or TechnologyResearch Team Company
Not everyone can or should be a founder. !
Professors are terrible as CEOs (but great as advisors).
three big ideas : Definition
three big ideas : Framework
How do we share our thinking?
three big ideas : Framework
What we used to do Write a business plan.
Make a five-year forecast. Pitch for investors.
Fiction Fantasy
Business plan? 5 year forecast?
three big ideas : Framework
What we do now Focus on the business model.
Talk about evidence, not belief.
Use the business model canvas
VP CS
C
P
KA
KR
C$ R$
As a Startup Engine…
… and as Investment Readiness
✓✓
✓✓
✓✓
✓
✓✓
three big ideas : Methodology
How can we be assured?
Startups fail, often. Even yours. Even ours.
Startups are risky.
Product Market
Team Financial
Four Existential Startup Risks
Four Startup Risks: Product
Every startup can make something.
Can you transform that great technology into a product someone wants to
buy from you?
Core Idea or Technology CustomersStartup
?
$
Most startups fail because they fail to find their customer.
The common denominator of every business is a customer.
Four Startup Risks: Market
Can your team execute? Do they have the network?
Can they attract & hire talent? Can they get the funding?
Four Startup Risks: Team
Is the model capital efficient? Revenue in year 1?
Repeatable sales process by 2? Organic growth or investment?
Four Startup Risks: Financial
Team FinancialProduct Market
three big ideas : Methodology
Systematic reduction of startup risk
Do this first. Then, do this.
three big ideas : Methodology
Connected & Primary Risks
Product Market
three big ideas : Methodology
Customer Development
Customer Development
Customer Discovery
Customer Validation
? ✓
Customer Creation
Company Building
Startup Company
Alignment & Sequence
Customer Discovery
Customer Validation
? ✓
ProductMarketRisk
Process
However…
Customer Discovery
Customer Validation
? ✓
ProductMarketRisk
Process
Assume you can
transform technology into product
…
… and
Customer Discovery
Customer Validation
? ✓
ProductMarketRisk
Process
… Address Market Risk
before doing Anything
Else
Why?
?
$
Customers, not Technology
Job / Task
Pain
Desire
✓
How?
?
$
WHO CARES? WHY will they BUY?
three big ideas : Methodology
Answer these questions:
There are NO facts in your buildings or labs.
Get out into the world and find out what’s true.
the real key:
100+ Interviews
three big ideas : Methodology
A man who carries a cat by the
tail learns something he
can learn in no other way.
You cannot outsource the discovery process.
!
Your startup team must gather the evidence
themselves (but you can guide them).
three big ideas : Methodology
You should expect: Deadends & Pivots
Complaints Frustration
and then, finally, Evidence
three big ideas : Methodology
Evidence-based entrepreneurship and these processes will make yours
fail less.
Startups are risky.
venturelab.gatech.edu
@venturelab / @keithmcgreggor
75 Fifth St NW, Suite 415, Atlanta GA 30308