3 Phases of a Startup
-Standup
-Startup
-Scale Up
Mannheim university
Fundraising, How to find a business angel
Hype Cycle & Geoffrey Moore Crossing the Chasm
From Ideation to MVP and First real product
Team Building
Fundraising
Startup Books
Independent Escorts Vikaspuri / 9899900591 High Profile Escort Service in Delhi
Entrepreneurship Lecture - How to Start a Startup MBA School - University Mannheim
1. 1
HOWTO START A START-UP?
MICHAEL ALTENDORF, MANNHEIM MBA SCHOOL
JANUARY 2021
2. 2
TABLE OF CONTENTS
• About Adtelligence
• StandUp
• Why do you want to start?
• How to create a team
• How to find your first angel investor
• How to build a minimum viable product
• Define your business model
• StartUp
• Go to market & customer development
• Create a unique product
• Verticalize and position right
• ScaleUp
• Raise Venture Capital
• How to scale
• Company Stages
• Exit
• Recommended Readings
3. 3
ABOUT US
Adtelligence provides high-end software
solutions for analytics, personalization and
automation in marketing and sales
Adtelligence was founded in Germany in 2009
by former SAP executives together with
investors
Over 100 projects implemented withAI, Big
Data, PredictiveAnalytics and personalization
3
AWARDS PARTNER
All solutions are
GDPR/DSGVO compliant
and are regularly tested
for data protection and
security
5. 5
SALES & CUSTOMER INTELLIGENCE
AUTOMATE PROCESSES, IMPROVE CUSTOMER
ACTIVATIONCROSS- & UPSELL
with the Customer Data Platform
and Marketing Automation solution
SOFTWARE PLATFORM
PERSONALIZATION
GENERATE LEADS AND
WIN NEW CUSTOMERS
through intelligent websites
that learn what the customer likes and optimizes for the best
conversion rates
CUSTOMER EXPERIENCE MGMT
& PERSONALISIERUNG
MASTERMIND AI
FRAMEWORK
9. 9
IDEA - IT ALL STARTSWITHTHE IDEA
• Do I have a good idea?
• What is my vision the world in ~25 years?
• Can I make an impact?
• Am I good enough to be an entrepreneur?
• I have an idea but can not build not sell the product, what should I
do?
• How can I find a technical founder or a real team?
• You can I survive without salary?
• Why should somebody invest in my idea?
• Where do I get the money for my company from?
• Who gives me the money?
• How do I get to know angel investors?
• What kind of questions do the investors ask?
• What is a “good” idea and business plan?
• (…)
WHAT QUESTIONS DOYOU HAVE?
Source: Computer History Museum, <1980
16.02.2021
9
YOU STARTWITH MANY OPEN QUESTIONS
12. 12
THE BUSINESS MODEL
CREATE A BUSINESS IN 10 MINUTES AND START IMPROVING IT!
16.02.2021
12
Source: A. Osterwalder Business Model Design Template
13. 13
BUSINESS PLAN – AREYOUVENTURE READY?
16.02.2021
13
• Create a financial plan in two ways in excel
• Bottom Up – how to get the first 10 clients
• Top Down – how much money do we make with
1000+ clients
• From where to you get the market size and figures?
• From market analysts
• From your own analysis
• Take pricing data from competitors or similar
companies
• Calculate 3 Scenarios (+/+/=)
if you have a negative outcome think about your
business model
• Find out if you can raise money with such a plan?
(reach 10M+ revenues in 3-5 years)
14. 14
16.02.2021
14
“No Business Plan Survives First
Contact With Customers!
Start with a business model,
not with a plan!”
Source: http://blogs.wsj.com/accelerators/2012/11/26/start-with-a-business-model-not-a-business-plan/
STEVE BLANK SEES IT DIFFERENT
THE STARTUP GURU THINKS THAT YOU DO NOT NEED A BUSINESS PLAN? NO!
15. 15
TEAM - HOWTO BUILD A KILLERTEAM?
16.02.2021
15
Go to all startup events and many conferences to get how it works
and build a network
Tell everybody that you have an idea and want to start a business
In emergency case start alone, people will follow along the way if
your idea is good (this can take years)
Experienced people help, but smart & fast executers and learners
help more in a startup team
Combination of experience and fresh minds who can work 100h a
week
You do not need an MBA to start a company
Minimum 2 people for the start: One who builds the product, one
who sells the product
3-4 founders are better but hard to find 4 equally strong founders
who also stay 5 years, often one leaves after one year or needs to
leave
The ideal team
16. 16
FUNDING - WHERE DO I GET THE MONEY TO START?
TYPICAL SOURCES FOR FIRST ANGEL MONEY:
Own Money
Family, Friends & Fools
Business Angel (Network)
Incubator, Accelerator programs
Bank Loan
Seed Funds
PREFER SMART MONEY INTHE BEGINNING!
Venture Capitalists most times didn't had an own company with
problems you will get
Prefer Business Angels with experience and a lot of spare time
If you can not raise money with a business plan find some mentors to
understand how to reach the next level
16.02.2021
16
How can I raise 100.000€ with a ugly website like this?
The investor (Andy von Bechtholsheim) understood the potential!
17. 17
FROM CONCEPTTO A SOLUTIONTAKESTIME
16.02.2021
17
Idea 2010 V1 2012 V2 2016/2017
18. 18
THE NEXT LEVEL – STARTUP
FROM THE MVP TO THE FIRST 10 CUSTOMERS AND 6 DIGIT REVENUES
19. 19
ITERATEYOUR MODEL UNTILYOU REACH PRODUCT MARKET FIT
16.02.2021
19
…and go to market with the minimum viable product!
20. 20
SALES IS PURE EXECUTION & REPETITION
• Week 1
Define a beachhead where to enter the market
Ping 200 people on Linkedin and Xing
and get 10 meetings! (5% CTR)
• Week 2
Define a new target customer
Define a better package and better pricing
• Week 3
Start again…
Define the pricing again and check value based pricing
for the first clients
Hint: the first 5 clients you have to buy = no money or
huge discounts that is why a freemium model may work first in early markets
• After one year
Market clearer but iterations every - 4 weeks to improve pitch and feature set
• After 5 years: Every 3-6 months iteration cycles
HOWTO FINDYOUR FIRST CUSTOMERS
16.02.2021
20
21. 21
FROMTHE MVPTO A REAL PRODUCT
SOURCE: http://www.theinnovativemanager.com/wp-content/uploads/2014/10/whole-product-planning-crossing-the-chasm.jpg?a4c06d
16.02.2021
21
22. 22
THE MARKET - NEW MARKETSARE DIFFERENT
You need to decide for a market! Existing markets are easier to start with but harder to reach monopoly
16.02.2021
22
25. 25
16.02.2021
25
Do not burn the money through before the market starts taking off!
TIMING, timing, timing
… and if you are too early enough funding and paitence to wait
33. 33
SCALE UP
HOW TO REACH 7-8 DIGIT REVENUES
SCALE UP
FROM GROWTH TO EXIT OR IPO
34. 34
RAISINGVENTURE CAPITAL
16.02.2021
34
Phase Who invests? €€€ Volume How much % do you
give a way
Success Factors
IDEA
HYPTOTHESIS
Nobody 0 0 Experience and Background
ORIENTATION Fools 0 0 Meet the right People
PLANNING Fools or apply for an accelerator 25.000 € 5-10% Background - Who can write a clean plan and
make a good calculation - only serial
entrepreneurs in Silicon Valley are getting
money for Ideas
FOUNDING /
BUSINESS PLAN
Family & Friends, BA with Experience in
this Segment
0 - 1 Mio. 10-50%, avg 25.1% Own funds, persuasive power, can you get VC
with your Plan and your Idea, can you realize
your Plan
SEED / MVP Business Angel - prefer smart Money
with people from the industry
Up to 1M, but 50k -500k
average
25% How good is the Team and the prototype
STARTUP Business Angel or public seed funds Up to 1 M depending on
segment
10-20% Development, Financial Plan
EARLY STAGE HNWI, Business Angel with big money,
VC
Up to 10M € US funds, 1-5
M German
10-30% The right Contacts, Potential and Team
EXPANSION Top Tier VC’s & Corporate Investor 5-25 M € 25+% over 1-2 rounds Growth in Sales, Business Model (reoccurring
revenues)
LATE STAGE IPO, VC, PE, Buy Out funds,
Hedgefonds, etc.
Unlimited 25-75% (secondary for
early investors and
founders normal)
Growth in Sales, EBIT, Market Share
35. 35
WHAT KIND OF QUESTIONS DOTHE INVESTORSASK?
PRODUCT
• What is the Product Roadmap?
• What are you developing next, how
long will it take, and who are your
hires to develop it?
• How did you make the decisions
regarding the direction the product
is right now?
We want to understand your
decision making process and your
vision of the company.
This last point is extremely important.
16.02.2021
35
MARKET
• How big is the market and how will
it grow?
• What are the trends in the market
that make now the right time for
your product?
• If you're in a big enough market,
you can afford to make some
mistakes (which as startups you will
always do!).
• Who are your first customers? Are
they referenceable? What does your
pipeline look like?
COMPETITION
• Who are the competitors?
• What is your competitive advantage
and is it sustainable?
Hint: IP patents are not enough.
36. 36
WHAT KIND OF QUESTIONS DOTHE INVESTORSASK?
16.02.2021
36
TEAM
• What are your backgrounds, where
did you meet, and why are you the
right team to execute on this plan?
•
Who does what, and who else do
you need to hire to build out the
right team? Be lean with your costs.
•
No VC likes to see a company that is
spending extraneous money.
SCALABILITY
What are the barriers to growth?
There will always be some; be aware of
what they are. This could be from the
business model side or the technical
product side.
Within this there is also the issue of
customer acquisition strategy and cost.
Finally, although we do not ask the
founder this question, we ask
ourselves:
In what ways doWE
as theVC investor provide
value to this particular
entrepreneur / team /
startup?
37. 37
HOWTO SCALE UP
Verne Harnish divides the topic in four key areas:
PEOPLE - Attracting and keeping the right People
Define your Core Values
Act to those rules
STRATEGY & VISION - Creating a truly differentiated Strategy
Is your strategy good enough to attract many customers and
differentiates your from the competition
EXECUTION - Driving flawless Execution
Setting priorities and action plans
Set KPI’s and measure
Review and keep everybody in the loop
Check the “Rockefeller Habits”
CASH - Having plenty of Cash to weather the storms.
Cash (-flow) is king
Every decision affects revenue and profit
16.02.2021
37
Source: http://scaling4growth.com/wp-content/uploads/2015/10/Scaling-Up.pdf
38. 38
EXAMPLE: FACEBOOK INVESTMENT ROUNDS
90% of the value is created after the IPO! (PeterThiel)
16.02.2021
38
PRE-SEED SEED
EARLY
STAGE
GROWTH
LATE
STAGE
PRIVATE
EQUITY IPO
39. 39
THE EXIT
16.02.2021
39
• What is my company value?
• Revenues x Market Hype x Growth Rate x Competition = Exit
Value
• Ask an expert first before you sell and take an M&A advisors
in London, NY or silicon valley ion a later stage or a German
one in an earlier stage
• IPO IS NOT AN EXIT STRATEGY!
…as you stay with the company and you have a lock-up period
• Different exit options:
• Selling to a major corporate is best, but there are many other
which are ready to buy
• No need to sell all at once to make money: Private Equity is a
new key element in the chain. You raise further money and
already sell some shares (“secondary”)
• Stay with your company and somebody else becomes CEO
and your are in the advisory board (SAP…)
• Merger with competitor or US vendor to create a bigger
company
41. 41
INSIGHTS FROM REID HOFFMAN (Greylock, Linkedin)
16.02.2021
41
Rule #1: Look for disruptive change.
Rule #2: Aim big.
Rule #3: Build a network to magnify your company.
Rule #4: Plan for good luck and bad luck.
Rule #5: Maintain flexible persistence.
Rule #6: Launch early enough that you are embarrassed by your first product release with
the minimum viable product
Rule #7: Aspire, but don’t drink your own Kool-Aid (Very sweet US lemonade/sugar drink).
Rule #8: Having a great product is important but having great product
distribution is more important.
Rule #9: Pay close attention to culture and hires from the very beginning.
Rule #10: Rules of entrepreneurship are guidelines, not laws of nature
42. 42
RECOMMENDED READINGS
16.02.2021
42
Eric Ries
The Lean Startup
(how to bootstrap as long as
possible)
Guy Kawasaki
The Art of the Start
Randy Komisar
The Monk and the Riddle
(how to come from a rough idea to a real
business & first product
43. 43
RECOMMENDED READINGS
16.02.2021
43
Alexander Osterwalder
(Create a Business Model)
Business Model Generation -
David S Kidder
The Startup Playbook
How to Start a Startup
startupclass.samaltman.com/
(15 lectures from Stanford)
Videos of the lecture
http://www.youtube.com/channel/UCxIJaCM
EptJjxmmQgGFsnCg
44. 44
RECOMMENDED READINGS
Marc Benioff
Behind the Cloud
The Challenger Sale: How To Take Control
of the Customer Conversation
The Challenger Sale: How To Take Control
of the Customer Conversation
47. 47
RECOMMENDED READINGS
16.02.2021
47
Peter Thiel
From Zero to One
Steve Blank
The Startup Manual &
4 steps to epiphany
(Go to market and Productization)
Ben Horowitz
The hard thing about
hard things
(more for existing
companies)
49. 49
RECOMMENDED READINGS
How to pitch to a VC - Reid Hofmann, founder of Linkedin and
Managing partner of Greylock describes his own pitch, how he
framed the business to have a real competitive edge and a
unique selling proposition
How to define your market right and how to show to investors
that you are NOW a good investment
Timing is everything!
A night long reading:
http://reidhoffman.org/linkedin-pitch-to-greylock/
16.02.2021
49
Source: http://reidhoffman.org/linkedin-pitch-to-greylock/
50. 50
FORTHE START: BWCON BUSINESS PLAN HANDBOOK
16.02.2021
50
Download:
http://www.cyberone.de/cms/fileadmin/download_files/Businesspla
nhandbuch.pdf
54. 54
THANKYOU!
MICHAEL ALTENDORF
CEO & CO-FOUNDER
ma@adtellligence.com
www.adtelligence.com
ADTELLIGENCE GMBH
Philosophenplatz 1
68165 Mannheim
Germany
www.adtelligence.com
Notas do Editor
The digital transformation is one of the key challenges for every company worldwide
What can you do with AI and big data for your business?
You can use it for any business cases, but where have you already today a major proven impact
We have 3 areas with clear results
Testimonials - Referenzfolie
Unsere Lösungen haben direkt Impact auf ihren Umsatz
Market leader for AI driven sales solutions with strong footprint in the Financial Services sector
Adtelligence’s sales solutions increase revenues and drive conversion of sales teams by creating real time insights about clients‘ intent to buy resulting in a increase of sales by 10 - 30%
#AI #Customer Intelligence #Personalization #Big Data #Predictive Analytics
Market leader for AI driven sales solutions with strong footprint in the Financial Services sector
Adtelligence’s sales solutions increase revenues and drive conversion of sales teams by creating real time insights about clients‘ intent to buy resulting in a increase of sales by 10 - 30%