Success Story You Will Never Success Story You Will Never Repeat – But Should Still TryRepeat – But Should Still Try

by Dmitri Dubograev © 2013

The story of Pinxter™

1. Inception (DOs)

Birth of the Idea (March 8, 2013!!!) Need to think through, live and improve the idea “I would use it” – merge the two worlds“Other people would use it”It solves a specific problem with easeCould be a unique problem but (better!) you

should offer a unique solution!It does not need to be YOUR problem. But you

need to know people whose problem it is.Solution has to be better or (better!) – simple!!!

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1. Inception (DOs)

Things that women need (and men don’t want to deal with)

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1. Inception (DON’Ts)

Failed ideas of other projects: Assumes it solves a problem (but there is none)“I would not use it but someone should” Easy to replicate (but not always!). Run fast! No focus, no need, no goal No monetary value (time, money or fun) too much work with little resources Don’t assume “so simple – somebody probably

did it”. What if you are wrong?

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2. Building the Team (DOs)

April: connections, conferences, word of mouthTrust is important

DO NOT SAY TOO MUCH until Term Sheet/NDASkill

Дешева рибка - погана юшка © Do your due diligence, track record, their ideas

Manage expectationsPartner/salary/investor – again, put on paper/email

Make sure they have “skin in the game” or be ready to pay them or push them away

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2. Building the Team (DON’Ts)

Failed Teams in other pojects too much disparity in approach (one focus)

But you do not need the same skill NOT a partner/founder – ask for $$ every day

If there is a discussion “how much you will pay me” in first weeks – this is not a partner

signing stupid papers at initial stagesgiving away/disclosing too much IPMisunderstanding re ownership %% (think in raitio

me/you 3:1, rather than you will have 25%)

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3. Architecture/Shape (DOs)

Company (Pinxter Inc. formed on June 3 in US)Formation is the key

USA/EU v. “Laundromats” (v. ридна ненька Украина?)Scalable and set for growth (no “restructure”)Company is also to protect you (limited liability)Relationship b/w founders (understanding)

Necessary votes to act, issue new shares/new team members

Veto re important issues, how do we sell the project Adjustments if one works/the other does not

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3. Architecture/Shape (DON’Ts)

Failed structures “offshore” – focus on making more money for

yourself and NOT on paying less taxes bad jurisdictions and problems:

can lose everything (creeping nationalization - Cyprus)Money sending/receiving, certificates, bad rep

NO UNDERSTANDING AMONG PARTNERS AS TO THEIR POWER DISTRIBUTION

if you can afford attorney/advisor – this is the time to get it to avoid serious issues

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4. The “Filler”/IP (DOs)

EVERYTHING MUST GO to the COMPANYAll of ideas and IP:

Developed BEFORE (assignment)Transfer AT THE TIME of formation (assignment)Becomes property on “click” of the keyboard of each

developer in the FUTURE –software development agt“Alien code”:

GPL, GNU, “copyleft”, LGPL, “hippy code” - LICENSE it! “Well, there is some code that I used for other project” -

make sure that your developer licenses it to the company (or vice versa)

Copyrights, Patents, Trademarks and trade secrets

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4. The “Filler”/IP (DOs)

by June 10 - Pinxter filed for TM (intent to use), ©, patent is in the process plus NDA with ALL

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4. The “Filler”/IP (DON’Ts)

lost or uncertain IP “leaking” vessel cannot float (nor financed/sold) copyright not registered

– hard to prove, hard to match Descriptive or generic TM are bad:

“Best Race”, “Good Farm”, facebook (need a lot money to defend!) Must be:

fanciful (Playzum, Fozium, Alawar, Playrix, Luxand, Pintrest) Arbitrary (BlueTooth, Gaijin, Oxygen) Suggestive (Pinxter, Apple, SkyOdds, ToonBox, ZBrainy) More read at: IT Grabli: how to choose the name for you product 

wp.me/p2AI6A-1n via @femidaUS

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5. MONEY (DOs)

By June 21, Pinxter gets 1 round of financing from a consortium of angels:Truly smart money (=connections) Investment Funds are spent on

DevelopmentMarketing Legal Protection

Founders chose NOT to take any salary…

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5. MONEY (DOs)

Polished Product before release

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5. MONEY (DOs)

Big role: existing company, IP, agreements

fair deal: Veto, restrictive covenants, board seat Minimum day-to-day interference (if all goes

as planned) minimum changes to the EXISTING

agreements Maximum help (almost as much as with

founders)

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5. MONEY (DON’Ts)

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5. MONEY (DON’Ts)

You have to be ready to take the money

Danger areas: Don’t make investors do YOUR jobDon’t give out too much Perform as promisedPut things on paper/agreementProtect you IP

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6. Release (DOs)

July 22, App is released

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6. Release (DOs)

Test on users and then full blown marketingBy August 31 – three new updates

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6. Release (DON’Ts)

LEGAL FAILURES: Privacy terms of use licensesDMCA

Dangerous/weak agreements (exclusive etc.)

Complete mess with the contractors, employees and consultants

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7. Accelerate and expand…

September 1:Second round of investment… …. from the SAME group of

investorsBUILDING on TRUST and PERFORMANCE

It’s not the ‘success‘ yet……but it’s ready for one

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Contact information

Need your feedback!email: dd@femida.us

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skype: ddFemida

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