INNOVATION IN A STARTUP CONTEXT - innovationstarterbox.bg · INNOVATION IN A STARTUP CONTEXT Kosta...

Innovation ExplorerSofia, February 25th, 2016

INNOVATION IN A STARTUP CONTEXT

Kosta JordanovFounder & CEO, Flipps

BACKGROUND

✓ Three startups✓ One exit, one IPO✓ Flipps

– 3 granted US patents– 15M+ users installed the app– 120+ partners including CBS, Bloomberg and Showtime– Disruption-seeking investors including Tim Draper

… and numerous mistakes ☺

WHY INNOVATE

3 key competitive advantage to a business:1. Scale2. Monopoly3. Innovation

Only innovation is available to startups

INNOVATION

✓ New/different✓ Create value✓ Cost < Value

A new match between a need and solution

HORIZON

Solution risk

Market risk

Unknown solution

Unproven need

H1

H2

H3

Existing solutionExisting market

HORIZON

Solution risk

Market risk

Existing solution Unknown solutionExisting market

Unproven need

H1

H2

H3

HORIZON

Solution risk

Market risk

Existing solution Unknown solutionExisting market

Unproven need

H2Startup Zone

H3Risk too highRequires big fundingFirst mover advantage?

H1Hard to differentiate

WHY CORPORATIONS OFTEN FAIL AT H2

1. Risk aversion2. Slow execution3. Short-term vision

WHAT A STARTUP NEEDS TO EXCEL AT

1. Risk management2. Speed of execution

RISK MANAGEMENT

Key objective: Product-market fit

✓ Look for need first✓ Test hypothesis early✓ MVP✓ Iterations✓ Pivots

SPEED OF EXECUTION

Context: Limited runway

Objective:✓ Test max ideas✓ Learn the most✓ Max traction

Fast, aggressive, leanUse the best, invent the rest

KEEP INNOVATING…

* It only provides a temporary advantage ☺