Bill Gross CEO of Idealab
Post on 22-Nov-2014
DESCRIPTIONWhat makes a Startup Successful?
- 1. There has never beena better time in historyto start a company**What makes aStartup Successful?Bill GrossFounder & CEO, Idealab
2. Ive been starting companies since I was 12 years old 3. Started my 2nd business when I was in HighSchool 4. Started my 3rd business when I was in College 5. I graduated from Caltech the month IBM released the PC 6. Began writing PC software, Tools for Lotus 1-2-3Lotus Development acquired in 1985 for $10 Million 7. After seeing first Multi-Media PC, started KnowledgeAdventure when my son started Kindergarten in 1991 8. Grew Knowledge Adventure to#3 Educational Software Company 9. Netscape Browserand IPO in 1995,30M Global Users 10. Started Idealab as a technology incubator in 1996Idealab is a businessdesigned to create businesses 11. First 12 Ideas in 1996 12. More than 100 companies founded in our 1st 18 years 13. Of those 100 Companies, Idealab has: Helped the companies raise more than $3.5B Completed 45 successful IPOs and acquisitions 30 current operating companies Experienced 50 failures Created more than 10,000 jobs 14. What Matters Most To Make A Startup Successful? Everyone is looking for a simple formula (Im sorry) As Peter Thiel says in his book: The next Bill Gates will notbuild an operating system The next Larry Pagewont make a search engine The next Mark Zuckerbergwont create a social network Every bold new company is new andunique, no one can prescribe HOW to be innovative Successful people find value in unexpected places So if I cant give you a formula, what can I give you? 15. 5 Essential Elements that Lead to SuccessIdeas Team BusinessModelFunding Timing 16. Looked at factors of success / failure in 130 companiesIdeaTeam / ExecutionBusiness ModelFundingTiming Novelty/Differentiation Truth that no one else sees Competitive Moats Efficiency/Effectiveness Adaptability Clear Path to GeneratingCustomer Revenues Raising Money for InitialFunding, Follow-on & Growth Way Too Early Early Late 17. Unicorn Successes and Failures 18. Unicorn Successes and Failures 19. Looked at factors of success / failure in 130 companiesTimingTeam / ExecutionIdea Truth OutlierBusiness ModelFunding42%32%28%24%14% 20. Top 5 Factors Leading to FailureNo Market NeedRan Out of MoneyNot the Right TeamGot Out-CompetedPricing Cost Issues42%29%23%19%18% 21. Execution Matters a LOT,but Timing Really MattersMaybe evenmore than theidea itself!** Apples Newton YouTube Facebook Instagram1 22. 2 Recognize yourStrengths and Builda ComplementaryTeam Design a structure around strengths,and balance your weaknesses byhiring complementary skills You need multiple viewpoints tointerpret your learnings wisely 23. You may be ridiculed for havinga great idea ahead of its timeAll truth passes through 3 stages. First, it is ridiculed. Second, it is violently opposed. Third, it is acceptedas being self-evident.3Arthur Schopenhauer19th century Germanphilosopher 24. Summary Startups can change the world. I have started companies in good times and in bad Now is definitely the best time ever to start a company Startups are understood Attracting talent has never been better Attracting capital has never been better Reaching a global market has never been easier Its easier than ever to START a company,but just as hard as ever to BUILD a great company I believe if you focus on the 5 factors to make your companystrong, and avoid the 5 factors that make most companies fail,you can improve your odds of success 25. To contact me:email@example.comTo follow me:@Bill_Gross