Jeff Greenberg - Lunch & Learn July 7, 2017

Evolution of a Startup

In a Perfect World…..

July 7, 2017© 2017, Tech Coast Works

… but Here on Planet Earth


Startup Timeline


Finance

Product

Staffing

Management Advisory Board

Virtual Pre-Revenue Revenue

Board of Directors Management Team

Out of Pocket Seed Capital Series A

Revenue None Limited Revenue Regular Sales

Founders

MVPConcept Production Release

Pilot or BetaFounders Full StaffPart Time, Consultants

& OutsourcingLimited Staff

Friends & Family

Wireframe

Operations Virtual Permanent ExpansionInterim

Advances

Productizing the Idea

Wireframe MVP ProductionConcept

• Fully functional

• UI/UX Industrial design

• Testing to provide feedback

• Bug testing

• Usability testing

• What problem do you solve?

• What is the base technology?

• What is your core competency?

• What about competition?

• Identify intellectual property

• Define the product

• Demonstrate core capability

• Partial implementation ok

• Partial mock-up ok

• UI/UX, Industrial design started

• Get feedback & revise design

• Final product

• Packaging

• Documentation

• Localization

Tip:

Design for

the customer,

not yourself


Managing the Company

Advisory Board Board of Directors Management TeamFounders

Role

• Create product

• Establish company

• Initial capital

• Establish IP strategy

Sources

• Friends

• Family

• Colleagues

Role

• Technical guidance

• Business Development

• Fund raising

• Business coaching

Sources

• Networking

• Potential investors

• Partners

Role

• Strategy & Coaching

• Compliance & Oversight

• Fund Raising

• Business Development

Sources

• Networking

• Investors

• Partners

Role

• Revenue generation

• Staffing

• Fund raising

Sources

• Networking

• Recruiters

• Investors

• Employee referrals

Tip:

Seek varied

backgrounds

Technical,

Finance, Sales

Marketing,

Corporate,

Startup


Building the Team

Part Time, Consultants

& OutsourcingLimited Staff Full StaffFounders

Technical

• CTO

• Architect

• Development

Other

• CEO

• Administrative Asst.

• Market Research

Technical

• Development

• QA

• Customer support mgt.

• Production

Other

• CFO

• Product Management

• Sales/Marketing/BizDev

Tip:

Leverage the

networks of

everyone

involved

Technical

• UI/UX, Industrial design

• Development

• Architecture & Documentation

Other

• Legal

• Bookkeeping

• Human resources

• Marketing, Social media

Technical

• More developers

• Customer support staff

Other

• HR staff

• Accounting/AP/AR

• Operations


Funding the Venture

Friends & Family Seed Capital Series AOut of Pocket

Sources

• Credit cards

• SBA loans

• 2nd mortgage

Uses

• Computing infrastructure

• Other tools

• Legal

• Travel

Sources

• Angel investors

• Grants

• Customers/crowdfunding

Uses

• Sales & marketing

• Production

• Inventory

• Staff expansions

Tip:

Develop a

clean,

concise

pitch

Sources

• Friends

• Family

Uses

• Payroll

• Operating expenses

• Travel & entertainment

Sources

• Venture capital

• Strategic investment

• Debt

Uses

• Corporate expansion


Managing the Operations

Interim Permanent ExpansionVirtual

Facilities

• Garage operations

• Term: indefinite?

Legal

• Articles of Incorporation

• Bylaws

• Shareholder agreement

• Provisional patents

Facilities

• Commercial lease, 3 years?

• Production/Warehouse

• Infrastructure, Network, Systems

Legal

• ESOP

• Term sheet

• Sales contracts

• Compliance

Tip:

Leverage the

expertise and

experience of

mentors &

vendors

Facilities

• Executive Suite, Co-working

• Term: month-to-month

Legal

• Consulting agreements

• Work for hire

• Insurance

Facilities

• Sales offices

• Remote locations

Legal

• Fund Raising

• Liquidity


Generating Revenue

Advances Limited Revenue Regular SalesNone

Takes longer than expected or

desired

• Early Adaptors

• Customer advances

• NRE

• Crowd Funding

• Direct sales

• Channel sales

• OEM sales

• Licensing

• SaaS


Startup Timeline


Finance

Product

Staffing

Management Advisory Board

Virtual Pre-Revenue Revenue

Board of Directors Management Team

Out of Pocket Seed Capital Series A

Revenue None Limited Regular Sales

Founders

MVPConcept Production Release

Pilot or BetaFounders Full StaffPart Time, Consultants

& OutsourcingLimited Staff

Friends & Family

Wireframe

Operations Virtual Permanent ExpansionInterim

If You Get it Right…


Jeff Greenberg

Managing Director

Tech Coast Works

949-544-1930

[email protected]

7/7/2017Copyright 2017 by Tech Coast Works, LLC. All Rights Reserved 13

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