Startupfest 2012 - The age of entrepreneurial enlightenment
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The Startup Genome & The Entrepreneurial Enlightenment International Startup Festival
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Today’s early-stage companies are obsessed with data. They rely on analytics to understand every facet of their business, optimizing the way they acquire and engage customers, how they spread the word, and how they extract revenue. After all, you can’t improve what you can’t measure. But this obsession with data has a cost. What if you’re optimizing the wrong things? What if you’re already better than the rest of the industry in one dimension, but falling behind in another? How would you know? In this session, Bjoern Herrmann shares his research into thousands of startups. Working closely with entrepreneurial visionaries like Steve Blank, Bjoern and his team have collected and analyzed the key performance indicators of a broad range of startups, and codified this data into a system that understands what “normal” looks like.
Transcript of Startupfest 2012 - The age of entrepreneurial enlightenment
The Startup Genome &The Entrepreneurial Enlightenment
International Startup Festival
Explosion of Technology Entrepreneurship
Entrepreneurial Enlightenment
Massive Impact on Economy
90% Job Growth in the US
90% of Startups fail
because of Self Destruction
How can we reduce the failure rate of startups
in a scalable way?
The Startup Genome
• Based on Stanford study 2010
• In collaboration with Stanford, Berkley & Oxford
• Extracted expert knowledge from thought leaders
• Built Predictive Models, Contributory Database & Artificial Intelligence
• Published the two reports with 25k downloads adopted by ~100 Universities
• Launched StartupCompass.co with 20k+ users
What did we learn?
Extreme uncertainty is the biggest challenge
The Problem: Premature Scaling
Startups efficiently execute the unnecessary
The Solution: Learning
The faster you learn the more likely you are to succeed
Customer
Product
Team
Financials
Business Model
Discovery Validation Efficiency Scale
Customer Response
Behavioral Stage
Actual Stage
Business Behavior
Startup/Organism
Market/Environment Sustain Conservation
Customer Interaction
How we assess premature scaling
Customer
Product
Team
Financials
Business Model
Discovery Validation Efficiency Scale
Customer Response
Behavioral Marmer Stage
Actual Marmer Stage
Business Behavior
Startup/Organism
Market/Environment Sustain Conservation
Customer Interaction
Example: Color
Result: Revenue
Result: User Growth
Result: Valuation
Result: Funding
Summing up
• Startups are exposed to extreme uncertainty.
• This uncertainty can lead to misallocation of resources, bad decisions and ultimately failure.
• To avoid failure the startup has to reduce uncertainty.
• Uncertainty can be reduced by listening to your customers.
• The Startup Genome Compass helps you to asses your situation, diagnose problems and measure progress.
How can you identify premature scaling?
Business Model
Team
Focus
Product
Valuation
Customer Acquisition
Questions?
• Check out the Startup Genome Compass at startupcompass.co
• send us an email at [email protected]
• download the report at blog.startupcompass.co
• Follow me at @bjoernlasse
