2015 11 19 Mistakes up to round A
Transcript of 2015 11 19 Mistakes up to round A
BEST TIME TO BE ENTREPRENEUR
Great entrepreneurial talent can be found everywhere
VC money has found its way into CEE
Explosion of Internet gives entrepreneurs from anywhere
ability to scale everywhere, mobile gives speed & B-user
app stores quick monetization
Where you come from suddenly matters much less
than where you are scaling into
ANNA HEJKA
Global Leader for Tomorrow by World Economic Forum in Davos for being serial entrepreneur on global scale
Business Angel of the Year 2009 by European Business Angel Association
12 years of PE/VC: Founder & Managing Partner Poland Growth Fund I, II, III,
MCI, Global Visions Fund
25 years of serial entrepreneurship: HCM, CEF, PGF, Five Dreams, GVF
27 years of investment banking: Founder & CEO Heyka Capital Markets
Group, Salomon Brothers/Citigroup, Security Pacific
3 years of commercial banking & credit analysis: Banking Officer JPMorgan
Chase
UNICORN NEST
GLOBAL ECO-SYSTEM
American Managing Partners, mentors, trusted VC funds & co-investors, corporations & investors
French & German Venture Partners
Polish investors, IC & board members, mentors & operating partners
Pan-European & transatlantic partners& mentors, IFC & World Bank
American / Polish business angels &
crowdsourcing
Israeli trusted VC funds and co-
investors
Global corporate network Technology incubatorsService organizations
Polish Managing Partner & financial institutions
GUARDING THE BIG IDEA
MARGINAL NICHE OR DERIVATIVE IDEA
Large/ Easy ValueBoring/ Difficult Benefit
• Change target group• Refresh image• Add funtions or• Sell IP
Large/ Easy ValueSerious Benefit
• Get financing• Build company• Go to market
Insufficient ValueBoring/ Difficult Benefit
• Delay development• Listen to beta testers or• Sell IP
Insufficient ValueSerious Benefit
• Add funtions• Change target group• Find partner
Medicine
NOT/PROTECTING INTELECTUAL PROPERTY
NOT INCORPORATING EARLY
NOT HAVING THE RIGHT CO-FOUNDER
POOR HIRING
EXCESSIVE PERFECTIONISM VS. SIMPLICITY
Portfolio of publicly traded companies in global top 10 brandshas beaten average global stock index by 214% since 2009
TOO MANY APPS VS. MVP
NOT LISTENING TO CUSTOMERS
GETTING DISTRACTED BY FEEDBACK
LAUNCH DELARYED OR PREMATURE
RAISING TOO LITTLE MONEY/SPENDING TOO MUCH
OBSESSING ABOUT FUNDING
TRYING TO WIN OVER EVERYONE
RAISING TOO MUCH MONEY
NOT UNDERSTANDING THEMSELVES OR
… INVESTORS OR
… CHEMISTRY REQUIRED BETWEEN THEM
NOT DOING DUE DILIGENCE OF INVESTORS
POOR INVESTOR MANAGEMENT
NOT EMBRACING AGILITY
PREMATURE OR DELAYED SCALING
ASSUMING VIRALITY
SACRIFICING USERS FOR SUPPOSED PROFIT
LOSING FOCUS
HALF-HEARTED EFFORT
OBSTINACY
CHOOSING WRONG PLATFORM
BAD LOCATION
LESSONS LEARNT → MARKET
Timing is critical, now also due to hiper-competition
Size of potential market, perception of problem there &
number of potential competitors are critical
Disruption is always met with skepticism (competitors),
users opened, investors mixed
Speed of global growth requires greater funding: Cos with
B$ status founded b. 2003-2008 raised median of $168M,
after 2009, $248M
LESSONS LEARNT → PRODUCT & TEAM
“...fall in love with problem you are solving, not solution you
are proposing.” Uri Levine, Waze (Israel)
Your basic idea has to be strong enough to see you
through early versions of product not being good enough
Be deeply & intimately passionate & creative
Build great entrepreneurial teams, including local teams to
transcend local differences & tastes; motivate them
LESSONS LEARNT → PROCESS
Best ideas are often in front of you, ideas that people think
are too simple or too obvious to work (Spotify)
Invest your own money
Launch domestically to demonstrate that product works,
then internationalize & go global
Differentiate from competition, build scale & barriers to entry
Focus on getting users & revenues but remember that
problems are compounded by rate of change
LESSONS LEARNT → MANAGEMENT
Solve problems quickly
Give your local teams power to control as much as possible
Avoid cash shortages to make sure you can make land grab
for early market share
If you can prove you can deploy capital well, it will work out
Talk to inspiring leaders
People need heroes
Source: Victor Haghani