Bootstrapping 101 with your host Mike Jones

Bootstrapping 101

Michael Jones• Founded 3 Companies, Sold 3

• Raised $3M, Lost most of it for my investors.

• Sit on 3 Startup Boards, 3 Mature Company Boards (30M+)

• Sold 3, Assisted 2, Bought 3

• Invested in 4 Startups

• CEO of Tsavo

S

S

S

You

• First Time Entrepreneurs?

• Second Time Entrepreneurs?

• Current Company Funded?

• Angel?

• VC?

Getting Started

• Sole CEO

• How Democracy often fails in Capitalism

• Partners & Founders & Roles

• Key Staff

• Buy/Sell Agreements & General Legal Setup

• Aim for success, prepare for failure

Founder Lessons

• Demise of PBJ & Lack of Buy/Sell Agreement

• Exiting Founder in Userplane with Buy/Sell Agreement

Consulting your way to Product

• Consulting & Development Services

• Flickr, Blogger, Userplane & Many Others

Userplane, Early Years

• 3 Founders (Tech, Product, Business)

• Consulting Jobs to Pay Bills

• Clients: Studios, Red Bull, etc.

• Introduction of AmIHot & Development of Product

• 6 Months of Market/Sales Before Traction

Pros / Cons

PRO CON

Pay Bills Massive Distraction

Learn new industriesTakes forever to launch

internal project

Can leverage consulting engagement to build license

of software (presell)

Doing crappy websites, draining your creativity and

burning your staff

Might be your only option : )

Getting $$

• Friends & Family

• Angel

• Formalized Angel Group

• VC

• Strategic Investor (?)

Breakdown On Raise

Amount Option

<200k Friends & Family

200<500k Angel

500<1M Formalized Angel (TCA)

1M+ VC

• Chances are you will lose their money, will you lose their friendship?

• Your responsibility to your seed investors.• How much do they get?

• Lesson: Investing.com and Alan!

Raising Friends & Family

Spend Management

Item Option

Staff How to pay?

Servers Trade/Branding

Legal Firm Selection

Contractors Design/Tech

Rent Shared Spaces

Always question where you and your team are spending their time, don’t be ridiculously cheap (Don’t build your own PC’s)

Recommended Startup Vendors

Service Vendor

Legal Greg Gilman

Accounting David Chaskis

PR Edge Communications

Hosting Media Temple

Payroll Paychex

The Board

• The Role of your Board

• Difference between Advisors and Directors

• Who goes on the board and why?

• All Founders, CEO? CTO?

• What is the board good for?

• How much do I give / pay to my board?

• How do I communicate to my Board?

Questions?