1 / 9

James Hogan Paul McLellan DAC 2011

James Hogan Paul McLellan DAC 2011 . Is this a system or chaos? . Aggregate: “… the properties of components sum to the whole ”. Seed System Architecture Marketing Specification Proof of Concept (Core Algorithms ) Round A - Validation Build System Infrastructure (DB, UI, etc.)

briar
Download Presentation

James Hogan Paul McLellan DAC 2011

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. James Hogan Paul McLellan DAC 2011

  2. Is this a system or chaos? Aggregate: “…the properties of components sum to the whole”

  3. Seed System Architecture Marketing Specification Proof of Concept (Core Algorithms) Round A - Validation Build System Infrastructure (DB, UI, etc.) Customer validation - Alpha/Technology Partners Feature focused Round B - Production Productization - stability Beta customer program Performance and usability focused Round C - Scalability Support focused Broader product proliferation IPO - Growth Focus - shareholder value Growth Revenue +20% EPS 20% New follow on products Global expansion Expectation of Each Phase

  4. Nominal Return Expectations

  5. Success Attributes of Software Start-Up Enterprise • Luck • Raise minimum cash, a low burn – never run out of cash! • Adaptable and scalable founding and executive team • Always better if the team has had prior success • Need for staying power – it might take six + years • Capitalization structure allows room for qualified investors and employee stock option pool. Typical A round target ownership: • Investors 40 to 60% (preferred), typically 50% • Employee pool 15 to 25%(common), depends on the founders backgrounds, typically 20%. • Founders and seed capital 15 to 40%, typically 20 to 30%

  6. Success Attributes of Software Start-Up Enterprise • An adaptable business plan – it always changes • Doesn't use a lot of cash to get to technology and market validation • Core competencies that need to be there by Round C • Market specification & solution architecture • Product specification & technical architecture • Product development • Integration & test • Packaging & field deployment • Quality of the investment group that brings : • Marketing and operational expertise • A network that can help recruit and introduce to customers • An ability to funded over multiple horizons

  7. Success Attributes of Software Start-Up Enterprise • Discrete and defendable market niche • Technology discontinuity • Supply chain dis-aggregation • Fast growing segment • Market segment not adequately served • A differentiated technology that has a sustainable competitive advantage • Patented where it can add value • Timing • More EDA startups fail by being to early to market than too late • Old technology/methodology often lasts one more process generation than you expect • Being early by one process node is two more years of cash

  8. Success Attributes of Software Start-Up Enterprise • Attractive areas for EDA • Analysis of something that was always second-order before • The “ends”: system-level design and software, DFM and yield optimization • IP, chips are not so much designed as assembled • What customers will pay for: • IP, it ends up “in” the chip so it’s mission critical • Optimization, especially power. It shows through to the end-user • Verification and other productivity tools: affects bottom line and can be quantified (ROI easy to establish) • Cheaper: not so much (“cut-rate heart surgeon”)

More Related