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Concept to Commercialization

Concept to Commercialization. Considerations for Founders Christine McCaull @ xtineM Milsal & McCaull www.milsal.com.

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Concept to Commercialization

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  1. Concept to Commercialization Considerations for Founders Christine McCaull @xtineM Milsal & McCaull www.milsal.com

  2. “If you want to do something that noone has done before, you must be comfortable with frustration, and failure, and confusion… and get used to being bewildered by why something that appeared so straight forward and simple turned out to be not that… then you [have the makings of a founder]”- Dean Kamen

  3. Why?

  4. .32 • 6 million! • 1.6%

  5. The Commitment • Startups need 2-3 times longer to validate their market then founders expect. • StartupGenome study • 5 years from founding to monetization for venture backed startups, if they succeed • Kaplan study • 9 years for non-venture backed startups, if they succeed

  6. 5+ years from formation

  7. Kaplan study findings: • FOCUS: The concept and intention stay the same from BP to AR--- Stay the same or broaden, very very few narrow- none change • GREAT TEAMS, SERIALLY: People are dispensable after formation stage- • Product/tech/solution matter more- patents/IP than management and leadership • Mgmt change with stage, more often w/VC- expertise only emphasized in beginning • EXPECT TO HAND IT OVER: Founders move from operating to board to no involvement, venture funded founders stake moves from 32% to 3.2% • SERIAL ENTREPRENEURS ARE THE OUTLIERS: Once non-human capital is established, few are serial entrepreneurs- may play operating role in other early stage companies- demoralization theory. “The market…does not value – and does not need to value – every good idea.”

  8. Misconceptions of 1st time founders • Overestimate IP value by 255% • Overestimate market size by 100x • Underestimate investment • Underestimate talent & importance of those with complementary skills (bidirectional!)

  9. Dissecting early stage venture • Milestone based thinking- what are your trying to show • Common milestones • Proof of Concept/Product • Market Validation • Sales operations/economics- Get the model right • Scale Up • Granularity: The Art of Getting Things Done

  10. Focused Time and Attention Drive Success • Get the idea right- Learn fast/pivot no more than once (revisit Kaplan) • Connect- Build advisors, follow people • Engage!

  11. TEAM • Have 1 or 2 cofounders. • Solo founders take 3.6x longer to reach scale stage compared to a founding team of 2 • Fit, and intention- pre-canaa for founders! • Balance your team • Development, Design, Marketing/Sales, Operations • Balanced teams drive results (Startup Genome) • 30% more money • 2.9x User growth • 19% less likely to scale prematurely

  12. Commercializing • Strategy • Brand • Reachable Market • Value Proposition • Socializing: Messaging/Communication • Process – Understanding a funnel

  13. Think about markets from the outset • Who needs you and why? • Build a viable path to market • “Don’t be in a rush to get big, be in a rush to have a great product” – Ries • Shift funds from R&D into sales • Sales and marketing united for efficiency • As creative as….

  14. Attributes/Beliefs • Personal Responsibility: Locus of Control • Massively curious: Humble, Learning • Execution: Work ethic & Showing Up • Positivity: More Carrot

  15. Core Beliefs of Extraordinary Leaders • Business is an ecosystem, not a battlefield. • A company is a community, not a machine. • Management is service, not control. • Employees are peers, not children. • Motivation comes from vision, not from fear. • Change equals growth, not pain. • Technology offers empowerment, not automation. • Work should be fun, not mere toil. Source: Geoffrey James

  16. Resources: • Wasserman- new book • Kaplan- IU of C • StartupGenome Project • Kauffmann Foundation • NVCA • Milsal.com for reading list and links.

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