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My visiting lecture at Aalto Mikkeli IB Campus on 3rd March 2011.
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The wonderful world of startups and Aalto Venture Garage as a
seed accelator
Aalto Venture GarageVille Simola
My Agenda
Agenda
What is a startup?What it takes to build a startup?Aalto Venture Garage as a co-
working space and seed accelator
Definitions
Definition #1
“A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets. “- Wikipedia
Definition #2
“A startup is NOT every new business venture (actually, it is but this is not the way we use the
term anymore). It is a new tech venture, internet related mostly, that has the potential of rapid growth through servicing new market segments and/or offering new product/services”- Quote taken from Quora.com
Definition #3
”A startup is the organization used to search for a scalable business model” – Steve Blank
Some comparisons
Comparison #1(Steve Blank)
Small businesses
• Business model found• Profitable business• Existing team• Not all the businesses
of internet age are ”scalable startups”
Scalable startup
• Designed to grow big• Huge uncertainty• Typically needs risk
capital• These companies are
the real startups
Comparison #2(Steve Blank)
Traditional accounting
• Balance sheet• Cash flow statement• Income statement
Startup metrics
• Customer acquisition costs
• Customer lifetime value• Monthly burn rate
Comparison #3(Steve Blank)
Business plan
• Static-document• ”No business plan
survises the first customer contact”
• Focus on planning not execution
Business model
• Can be iterated quickly• Shows how company
creates, delivers and captures value
• Focus on execution and how to make money
The idea
Idea #1
Importance is usually overemphasized
Idea #2
Will pivot during the journey
Idea #3
Is something that should not be hidden
The team
Team #1
Is the most important asset
Team #2
Should combine a different skillset
Team #3
Needs to have high and passionate vision
To be successful?
Success #1
Technology is nice but it’s all about the value
Success #2
Planning is good but execution wins the war
Success #3
Great companies are not born they are built
Success #4
Grow or die!
Recommended readings
Background
The start
The Garage started with grassroot initiatives by a group of students and entrepeneurs at Aalto University
Why?
We saw the need for change in the entrepeneurship ecosystem in Finland. This was the fall of 2009. The garage was empty.
Numbers
2.000 M€
<3 M€
Public Investmenton R&D 2010
Licensing Revenue for Research Institutions
~ 83M€Seed, Startup, Early Growth VC
#53/54Companies seeking for growth (GEM 2009)
Private Investment (GEM2009)
#51/54
Sub-contractorsResource intensive
Fast-growth companies (≈20)
Lähteet: GEM 2009 Global Report, Deloitte Technology Fast 50 & Fast 500 EMEA (2009, 2010), FVCA (2010), PwC MoneyTree, NVCA (2010), IVA (2010), Tilastokeskus (2010), Center for Venture Research (2009), Tekes (2009, 2010)
30
Activities
Co-working
Grass root initiatives
Pitching events
Open Mics
Talkoot workshops/Startup weekends
Grass root initiatives
Inspiring speakers
Tuli-talks w/ research based start-ups
Hackatrons
Enternship
10-week Entrepreneurial internship
1) is aimed for students interested in startups and high growth companies
2) no restrictions when it comes to school or nationality
3) Applications taken in from 4th of March
Startup programs
Summer of Startups
10-week start-up program targeted for students
Teams are provided:1) Coaching, mentoring & keynotes from the best serial entrepreneurs, VCs, PR professionals etc.
2) 24/7 working space3) Pre-seed funding for the selected team
Startup Sauna
More mature start-up program
targeted for advanced companies from the Baltic region running 2 times a year
Teams are provided:
1) Garage coach network2) 24/7 working space3) Office space and trip to Silicon Valley for the three best ones
Some case startups
Key success factors
Key factors #1
Culture of venturing from grass roots: Aaltoes
etc. meaning that we have best students and researchers interested to a) start b) work on startups
Key factors #2
Ideas and teams coming not only from Aalto
or rest of Finland but from whole Baltics and Nordics: only way to get good enough people and ideas
Key factors #3
experienced serial entrepreneurs with international
success and failures as coaches to work with the selected startups from very beginning: our coaches
Key factors #4
Exposure for the best startups to real markets, competitors, investors and specially to culture of doing business: 3- 4 months in the valley, in future Israel and china
SISU (FIN)
“Special strength and stubborn determination to continue and overcome in the moment of adversity. It's a combination of stamina, courage, and obstinacy held in reserve for hard times.”
Key success factor?
My contacts
Ville [email protected]+358 44 070 0520
aaltovg.comaaltoes.comfacebook.com/aaltovgfacebook.com/aaltoes
