Post on 19-Sep-2014
description
Five Questions You Must Answer Today
Richard RosenblattCEO and FounderDemand Media
Q1.) Why Are You Doing This ?
What does this kind of passion look like ?
A. Because I am in love with this idea
I’m passionate about lots of things…
Elements I focus on:• Consumer products that are made possible by the
Internet• Models that leverage and exploit the network effect• Media models that can be reinvented• Opportunity to work with amazingly smart people• Ability to make money for my investors, teams, and
friends
None of these are why I like to start companies
My passion is Self-Publishing
1994
2003
2007
Q2.) Do you have the best crew?
Your Crew is Bigger than You Think
Founders
Executive Staff
Board of Directors
Service Providers
Investors
Functional Staff
Advisory Board
Don’t settle on any of these groups; pick the best
Q3.) Who Will You Take Money From ?
Anyone
Compatibility
Sector experience
Temperament
Explicit Value
Fund position
It Really Pays To Think This Through
Savings Account
Friends & Family
Angels
Strategic Partner
Early Stage VC
Later Stage VC
Private Equity
Venture Debt
DistinguishingCharacteristics
Q4.) What is Plan B for Your Company?
Things Rarely Go According to Plan
Many start-ups have to run a broken play
Program in “Optionality”
• Know “what else” this could become• Always be testing alternative things
– Business models; segments; product offerings
• Let passionate staffers pursue their pet ideas• Good place to use partners• Killing these off is OK too…
Q5.) What Outcome Do You Want ?
A.) The right one
King of my hill.ColbeckHillClimb Media ($10mm)$300k bootstrap
Get what the market gives you.PanosPluck ($70mm)$17m VC raise
Go big or go home.RosenblattDemand Media (Outcome
TBD)$355m PE raise
Many Factors Will Play A Role in the Answer
• Timing• Size of the idea• Financial partners• Quality of the team• Stamina• Your spouse
Be honest – and organize accordingly
Let’s Review the Test
• Why are you doing this?• Do you have the best crew?• Who would you take money from?• What is Plan B for your company?• What outcome do you want?