Introduction to Startups

forComputer Science students

September 2014

Leni Mayotwitter.com/lenidot

leni at moniker dot net

Lets start with the big picture

Why take risk?

Entrepreneur as risk-bearer

Richard Cantillon(1725)

Entrepreneurship contd.

Origin: French, from entreprendre 'undertake’

Oxford Dictionary: taking on financial risks in the hope of profit

1803, JB Say, an entrepreneur:shifts economic resources out of an area of lower

and into an area of higher productivity

What is a startup?

• High Risk

• High Return

• Large Market

The meaning of words is contestable

Silicon ValleyHistorical period for Silicon Valley – eg Florence during the Renaissance.

Thought leadership around startups.

Common memes: “change the world” and “shoot for the moon”.

Silicon Valley has a 100-year history and a highly specialised ecosystem incl oceans of money and hundreds of big-name brands. All of which heavily colours the outlook.

Money with megaphones: incentives to influence culture in specific ways

Your context is very different. Don’t drink the coolade.

Reflect on what you read. Adapt what’s useful to your circumstances.

Most of your learning will/should come from first-hand direct experience.

Nor is Silicon Valley the only successful model

German-speaking countries• Mittlestand Germany: 50% of GDP• Highly focused• Innovative and high-value product• Do one thing really well economies of scale• Leadership in worldwide niche

• This pattern is seen in Australia too:– 3 people, $2m revenue, aspiring to 8

people and $5m revenue– engineering and management often

stronger than marketing and brand skills

Also of interest:Boulder, NYC, Israel and China

Melbourne culture

Sail away ... by Manfred Bartelshttp://pixdaus.com/?sort=tag&tag=sailing%20ship

That’s enough big picture.

Any questions?

Roles at a Tech Startup

Make itSell it

What critical role is missing?

Product / Market Fit

Make something that people want

(Paul Graham)

When uncertainty is high

it’s a different ball game

Tell me exactly what you want

and

I will build it

Is the road to failure

Strategy and practice develop in parallel

Lets play a game

Don’t invest in dead ends

Fast feedback allows usto exploit the value of emerging information

(Don Reinertsen)

Computer Science uses construction metaphors: engineering, architecture, design

Startups feel more like biology.

Start small and growSense and respond to environment

Continual evolution

ContinuallyPut working software

Into the hands of users

Tshaped people

ResourcesWhere What Why

startupvictoria.com.au Startup Victoria Community of like-minded people

tinalleybeta.com.au Tin Alley Beta Work experience at a local startup

12factor.net The 12 Factor App A (good) way to build web apps

reinertsenassociates.com Don Reinertsen Product Development

Questions? Comments?

Ask now (or later).

leni@moniker.net