5. The man vs. the horse competition:
• Started after a Pub dispute
• 35 Km, takes place in Welsh
• 1ST Race at 1980
6. The man vs. the horse competition:
For 23 years, the horse won
On 2004 the man won! (also 2007)
(both times – it was very HOT weather)
7. How can a man win against a horse?
What is the advantage for man In a HOT weather?
We sweat better than a horse
(Better abilities to climate our body)
10. Startup needs to be able to
scale properly
DISCOVERY
VALIDATION
EFFICIENCY
Confirm
whether they
are solving a
meaningful
problem
Seek validation
that people
are interested
in their
product
Refine business
model and
improve efficiency
of customer
acquisition
SCALE
Drive growth
aggressively
SUSTAIN
RENEWAL
13. The research presents
2 kind of startups:
Inconsistent - scales prematurely
Consistent - scales properly
Companies that scale
prematurely are
Average funding raised
Classifies as
Inconsistent
And companies that scale properly
are classified as consistent
$
1,100,000
$
3,400,000
15. 18 times
Funding
more money
Inconsistent startups raise 3
times more money in the
efficiency stage and 8 times
less money in scale stage
3 times
more money
EFFICIENCY
SCALE
16. Customer Acquisition
45% of startups that scale prematurely spend more
than 15,000$ per month on customer acquisition
before optimizing their conversion funnels &
acquisition costs. 80% of consistent startups spend
less than 15,000$
45%
15,000$
Spend
more
per month
80%
Spend less
17. User Growth
16-26
10-12
Inconsistent
startups grow 1012 times faster in
discovery
stage, 1.5-2 times
faster in validation
stag.
7-8 times slower
in efficiency stage
and 16-26 times
slower in scale
stage.
times faster
1.5-2
times faster
times faster
7-8
times faster
DISCOVERY
VALODATION
EFFICIENCY
SCALE
18. Users (not paying) - how
many reached more than
100,000?
23%
23% of consistent
startups exceed
100,000 users.
exceed
100,000
Users
99% of consumer
focused startups that
scale prematurely stay
below 100,000 users.
99%
Don’t break the mark
19. Users (paying) - which phase
they acquire Paying customers?
Enterprise startups that
scale prematurely have
75% more paid users in
Discovery and Validation
stages compared to
consistent startups.
50%
more
users
75%
75%
more
users
more
users
DISCOVERY
VALODATION
consistent startups have
50% more paid users in
the Scale stage that
inconsistent startups.
SCALE
20. Efficiency in programming
of lean product
inconsistent startups write
3.4 times more lines of code
in the Discovery stage and
2.25 times more lines of
code in the Efficiency stage.
2.25
3.4
times
more code
times
more code
DISCOVERY
EFFICIENCY
21. What is the focus on
Discovery phase?
77% of startups that scale prematurely focus 50% or more of
their resources in Discovery stage on product development.
45% of consistent startups focus their energy on customer
development.
Spend
50%
Focus on
customer
development
77%
Of their
resources on
product
development
45%
DISCOVERY
22. Startups that succeed in scaling properly
Simply invest more resources at the
Right Moment (and not before)
23. Exactly like the man
that wins the horse:
They know how to sweat and cool
their body before losing energy and
dehydrate
26. Capital Raised by Israeli High-Tech Companies ($M)
77%
73%
64%
76%
74%
66%
34%
Q
36%
24%
Q
Israeli VC Fund Share
Other Investors
Q
27%
Q
72%
73%
71%
26%
28%
27%
29%
Q
Q
Q
70%
75%
30%
25%
Q
Q
Q
23%
Q
Source: IVC Research Center
27. Great eco system that attracts foreign capital
VC investments Y2D H1 2013 ( in Millions$)
Germany
France
UK
Israel
Source: DFJ Esprit & Go4Venture Advisers mid-year analysis of European Venture Market
28. Money in, money out - the ratio
Capital Received (M&As and IPSs
Capital Raised by Israeli High-Tech companies
36. What’s the
secret
sauce?
R&D centers all every important US company
Government money supports R&D
Biggest Patents per capita
Biggest VC money per capita
Failure - isn’t failing
Presence of almost every important US VC
Army as incubator of management and
technology
37. With new records of valuations in exits,
the investors become more and more
patience to build big companies
38. As in Startup Genome,
The eco systems supports the startups
that reach scaling
39. BTW,
This is why Startups Genome ranked Tel Aviv as
2nd place best Ecosystem in the world
40. Tel Aviv Entrepreneurs are NOT
smarter than anywhere else
They just have more capital to scale
if they succeed.
This makes a Hugh difference and
allows to grow big companies