what's a good startup ? - founder and investor point of view
DESCRIPTION
What's a Good Startup ? Tips from Jeremie Berrebi, Angel investor in 300+ companies and Founder/Cofounder of 11 companiesTRANSCRIPT
![Page 1: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/1.jpg)
What’s a good startup?
Investor and Founder point of view
Jeremie Berrebi (@jberrebi)November 2014
www.berrebi.org
![Page 2: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/2.jpg)
About JeremieBorn in Paris, Jeremie Berrebi is one of the most famous French entrepreneurs in the high tech industry who began his carrier as a journalist for ZDNet and founded, or cofounded, 11 companies to date.
Since 2010, Jeremie is considered the most active angel investor in the world. Having invested directly, or indirectly via Kima Ventures, in more than 300 companies in 25 countries. He’s still investing 1 to 3 companies a week all over the world.
Jeremie was voted the ‘Best Seed/Angel Investor’ in Europe in 2014 at The Europas.Jeremie has already sold companies to Google, OpenTable, LinkedIn, OutBrain, Jive Software, Incomm, ShareThis, Naspers, Fotolia, TNS etc…
Jeremie Berrebi is living in Bnei Brak, the main Jewish Orthodox city in Israel and part of the Charedi Community.
![Page 3: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/3.jpg)
Having a real and big vision/story
![Page 4: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/4.jpg)
Be passionate about a VERY LONG (5 to 10 years) journey
more than the money
FORGET ABOUT EXITS!
![Page 5: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/5.jpg)
Find an idea related to a passion you love and
that helps a lot of people
![Page 6: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/6.jpg)
Answer a very big need that you have yourself!
![Page 7: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/7.jpg)
“I find out what the world needs, then I proceed to invent.”Thomas Edison
![Page 8: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/8.jpg)
Think and talk about benefits for your
customers, not features
![Page 9: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/9.jpg)
Execution is Key
Idea => 5%
![Page 10: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/10.jpg)
Make an Awesome Product
![Page 11: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/11.jpg)
Think about a potential Business Model (Acquisition
Cost<Potential Revenues) with potential for very big and fast
growth
![Page 12: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/12.jpg)
Build the right team• Find the right cofounders you already know well
• Define exactly what’s the role of each one.
• Write a Cofounder agreement.
• Begin with a test period
• Build a Killer, Experienced and Passionate Team who shares your vision. (Don’t hire robots)
![Page 13: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/13.jpg)
Create Barriers to Entry
![Page 14: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/14.jpg)
Ready?
![Page 15: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/15.jpg)
Multiple types of startups
• If you’re launching an app or software
• If you’re building a new complicated technology
• If you’re building a hardware company/IoT
![Page 16: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/16.jpg)
If you’re launching an app or software
![Page 17: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/17.jpg)
Bootstrap as much as you can
• No paid office to begin
• Be a coder yourself! and use Freelancers for difficult tasks (Odesk) Avoid employing people!
• Build a Minimum Viable Product (MVP) => Remove as many features as possible
• All productivity tools are now free (Google Docs, Skype)… You just need a computer!
• Most of big companies have a Startup Program (SVB, ZenDesk, Amazon, Google, RackSpace etc…)
![Page 18: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/18.jpg)
It’s taking a lot of time to find the real product fit
• Don’t raise money too early
• Iterate, iterate and iterate
• Measure and write down your 3 KPIs (including RETENTION) every DAY!
![Page 19: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/19.jpg)
But what if I’m really working on building a
new technology?
![Page 20: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/20.jpg)
New Tech Financing• Build an awesome cofounding team+top Advisory
Board
• Find potential awesome employees ready to jump
• Try to build and show an awesome prototype
• Show your experience and expertise in the current field
• Raise enough money to launch your product in the market.
![Page 21: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/21.jpg)
What about a hardware/IoT company?
![Page 22: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/22.jpg)
Hardware company• Build a team who have already built hardware
• Develop a prototype
• Find potential customers/channels ready to pre-order
• Launch your product on Kickstarter and Indiegogo
• Raise at least $1M after your successful campaign. Hardware is hard & expensive
![Page 23: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/23.jpg)
Raising Money
![Page 24: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/24.jpg)
When do I need to raise money?
• When you’ve found that you’re answering a real need with a real product (and resolve retention problems)
• When you want to push the accelerator in ONE direction
• When you need more people to serve your customers.
![Page 25: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/25.jpg)
When do I need to NOT raise money?
• When you’re still iterating, iterating, iterating…
• When you still don’t know what your company will look like in 1 year
• When you have no very satisfied customers…
• When you need to raise only because you need a salary
![Page 26: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/26.jpg)
What is an investor checking before investing in a company?• How nice is your deck? How big and clear is your vision?
• Are you answering to a real need? => Are potential customers and users waiting for you?
• Do you know how to promote/sell the product? (Potential chicken and egg problems) How much money do you need?
• How innovative is the technology?
• What’s the entry barrier?
• Did I find the right and best team to make this company big?
• How many months of runway will the company have with the current investment? What will be their status after all these months?
• How do you plan to use the money raised? (big salaries, great sofas, big office, hiring an expensive sales guy, lots of travel…)
![Page 27: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/27.jpg)
Don’t lie to your investors before or after a round!
NEVER!
![Page 28: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/28.jpg)
Consider your investors’ money as yours
![Page 29: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/29.jpg)
Update your investors with 3 to 5 lines every week
They will be your best ambassadors
![Page 30: What's a good startup ? - Founder and Investor Point of View](https://reader034.vdocuments.mx/reader034/viewer/2022052316/559bd7ec1a28ab4e158b45b2/html5/thumbnails/30.jpg)
– Jeremie Berrebi (@jberrebi)www.berrebi.org
Good luck!
Thanks to Michel Sassano & Vincent Jacobs for their comments