Spawning Scalable Startups

Joyful Frog Digital IncubatorSpawning scalable startups, sustainably

echelon2010 June 2

Wong Meng Weng

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We’re going to start a Y-Combinator-like operation soon.– Chris Evdemon, Innovation Works, Beijing

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Seed Accelerator Stats2005: Y Combinator begins

$5,000 per startup + $5,000 per founder

172 startups later, total acquisition value = $84M

average value per startup: $488,000

funded by founding angels Paul Graham, etc.

In Mar 2009 Sequoia invested $2M into YC.

2007: TechStars beginsaverage $15,000 investment per startup

39 startups later, total acquisition value = $17.25M

average value per startup: $442,000

funded by founding angels David Cohen, Brad Feld

Source: Copying Y Combinator, Jed Christiansen8

3X in 3Y

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Paul Graham = awesome

Graham ended up investing in Alexis's company through what became the seed funding firm Y Combinator, but the amazing part wasn't the money. It was that Y Combinator helped him move past a bad business idea that he and his partner spent a year on, and discover a better one, which became Reddit, the social news site that was sold to Conde Nast within 2 years of launching.

Then there's Kevin Hale … during the interview, despite initial resistance, they were convinced to create a form builder instead. The business became Wufoo, the startup that reached profitability within 9 months.

AirBnb: When they joined Y Combinator, they had a site that gave travelers an affordable alternative to hotels by matching them with locals who had space in their homes. They had a national presence, but they were constantly struggling for cash. Y Combinator gave them some funding to keep going, but they told me it was Graham's suggestion that they focus on just one city till they got their product right, which changed everything. Within a few months, they had a better product and they were finally profitable.

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http://mixergy.com/y-combinator-paul-graham/

Y Combinator and TechStars

JFDI.Asia

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Founder InstituteA Real Estate Incubator

plus “mentoring”

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JFDI

startup

founder

founder

… You should think of them as a co-founder … – Chris Evdemon, June 1

Positioning

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Our #1 Value-Add

We force founders totalk to theirmotherf*ckingcustomers

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Ideation Workshops

run by our partner Propellerfish.comSpecialists in New Product DevelopmentMarket Research and Workshop Facilitation

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The ProcessStart with a few themes

Do market research ahead of time

Gather user requirements and pain points

Organize an Ideation Workshop

Bring in domain experts

Bring in investors

Facilitate brainstorming

Produce dozens of ideas

Evolve and improve.

Rank them for feasibility

Fit to teams

Vision for JFDI

Short term value prop: More pre-qualified dealflow for seed and Series A investors: solid businesses designed to be investment ready.

Long term vision: a self-sustaining startup ecosystem in Singapore that turns founders into funders and inventors into investors.

Improve the startup experience for founders and investors.

Our motto: spawning scalable startups, sustainably

Strategic PartnersCredibility, Know-how

Talent engagement

Resource support

Customer engagement

Investor engagement

Core public funding

+ Smart private money

Management Team• Soon Loo: Board Directors of IPIT, listed business trust with

US$500m+ market cap. Adjunct professor, SMU. Former Regional Vice President AXA Group Japan & Asia Pacific. Co-founder and senior VP Nextdoor Networks, a Silicon Valley IT company in Silicon Valley where he helped the company raise USD37.5mil VC capital. Formerly, McKinsey & Company consultant, Harvard MBA.

• Hugh Mason: Serial investor / mentor / entrepreneur in the IDM sector. Co-founder Pembridge Partners LLP, London-based business accelerator specialising in marketing, media and technology SMEs that has raised/invested directly GBP25mil. Co-founder Narrateo Ltd, international TV production business. Former BBC TV producer. Physics graduate, University of Bath.

• Meng Wong: Serial entrepreneur and software engineer. Founded pobox.com in 1995. Led SPF/Sender ID antispam standards project to success during 2003 and 2004. Founded Karmasphere in 2005. MBA dropout, National University of Singapore. Founder, hackerspace.sg.

Team credentials

• 33 man-years of frontline entrepreneurship experience

• 17 man-years of active angel investment experience

• Over 2,000 SMEs supported

• Raised ~ $100MM of investment directly and indirectly

• Networks in US, UK, China, India, and SG + SEA

• Interdisciplinary, multicultural team – technology, education, communication, leadership

Operations - bootcamp

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FAQs

Where will the talent come from?

Who will fund the startups subsequently?

What about exits? Who will acquire the startups?

How can I invest? :-D