Starting Startups 2010

2008 © George T. Haber All rights reserved

• Who am I ? (some Shameless Bragging)

• I believe in Change “The only Constant”

• I agree with:

– Charles Darwin

– Albert Einstein

– Abraham Maslow

• Content to Consumer using Technology

• Starting Startup’s

– Markets and Marketing

– Putting a Team Together

– Business Plan basics


http://en.wikipedia.org/wiki/Oradea


Only child of Auschwitz Survivors


School and Teenage Life • Communism:

• Theory good but Practice a disaster

– Idiots running the place

– All Equal but some more equal than others !!

• What could I do ?

– Nothing was available

– Can’t even complain

• Rock & Roll & Disco

– Necessity the mother of invention =>built my Gear

– Dream of Israel…


1975 Let’s go to Israel

• “Family” near Tel Aviv

• Haifa Technion

– Student BSc EE

– DJ & Haifa University

– Life is good

– Air Force @Army

– Getting Married

– Graduate

– House, Car, Mortgage etc..

– Dan my first son is Born

– Work

• Dream of Silicon Valley



1988 Silicon Valley

Daisy

Dream of StartUP



In Motion with Love and Emotion

Founder & CEO

• 1993–1997 CompCore Multimedia = Video & DVD

– $70M M&A Zoran 12/1997

• 1997–2000 GigaPixel = 3D Graphics

– $186M M&A 3Dfx 03/2000

• 2000–2004 Mobilygen = H264 Video

– $33M M&A Maxim 10/2008

• 2006 CrestaTech = Programmable Broadband

– RF and Software (SDR)

– CrestaTV


In Motion with Love and Emotion• Board Member Public Companies (NASDAQ) :

– Zoran 1997– 2000

– 3Dfx 2000– 2002

– InterVideo 2001– 2006

• Board Member Private Companies– Class Data Systems Israel Acquired by CISCO

– InterAKT Romania Acquired by Adobe

– Avangate Romania

– Lucid 3D Israel

– NoBug Romania

• Angel Investor– Silicon Spice Acquired by Broadcom $1.2B

– Magma Design IPO in 2001

– Kagor Networks Acquired by Juniper $67M

– Aristo M&A with Monterey Design


In the news


What have I learned?

Change the ONE and ONLY Constant

• Possible? Impossible? just Perception:

– Possible now seemed impossible once

– Impossible now may be possible in future

• Change Happens:

– Evolution (or Devolution)

– Revolution

– Disruption (Accidents)


Evolution: Cost, Performance, Quality

• The Strong Become Stronger!

• Pushing the limits of what’s Possible

– Improving and fine-tuning the platforms• Cheaper Faster Better


Revolution: New ideas create new realities

• Rules change Monopolies Crumble!

• Breaking the limits of what’s Possible

– Creating new Realities

– Technologies and platforms


Disruption and Accidents

• Destroying the “Old” rewriting the rulers

• The Big Guys are in denial !

• Yahoo Organizing the Internet’s Chaos

• Amazon Organizing the worlds Books, DVD’s

• EBay connecting Sellers and Buyers

• Skype Free Phone

• Google Monetizing Relevance

• YouTube Organizing the worlds video content

• iTunes Music, Video, Games, Apps distribution

• FaceBook Organizing social life

• Twitter connecting People and spreading ideas


Darwin says: Adapt or Die ;)

• Resilience+Luck or Strategy+Tactics

– Prepare for worst, hope for best

– Solve problems with Action and predict the Reaction

• Timing is crucial => Cross the Chasm

– Early (No Market)

– In time (Market, Few Competitors)

– Late (Why bother ?)


Einstein says: E = mc2

• E = mc2 For people and organization• E = Energy

• m = Mass of knowledge (Education & Experience)

• c = Speed of reaction (Leadership & Attitude)

• Hire only the best• Leadership and Attitude

• Relevant Experience


Maslow says: Hierarchy of NeedsSurvival, Safety, Desire, Ego, Evolve

Survival: Life, Food, Health, Sleep, Sex

Survival of Self and Species

Safety & SecurityOrder, Laws, Limits

Safety: Peace, Order, Laws, Limits, Financial

Desire to BelongSocial skill

Desire: Understand, Accept, Belong

EgoSelf Esteem

Ego: Importance, Aesthetics, Prestige

Self Propel

Evolve: Create, Teach,Innovate


I say: C2CuT

C2CuT ? wtf.. is that?

Content to Consumer using Technology

User Experience


Content to Consumer thru “The Ages”Age

Historic Period Bits Time to

Propagate What

Content Technology / Platform

Consumer

Stone Age 1 1M Years Survival Rocks & Sticks Cave Man

Dark Ages 1K 10K Years Stories Verbal Arrows Swords

Small Groups

Middle Ages 10K 100 Years Stories Folklore

Papyrus Paper Transportation

King’s Noble’s Clergy

Industrial Age 100K 1Year Information News

News Papers Morse Code Radio

Industrial Elite Military

Post Industrial 10M 100 Days Industrial Propaganda

News Papers Radio TV

Consumers

Information Age 1G 1 Day Data Entertainment

Radio TV Computers

Scientists Professionals

Browser + Cloud 100G 1 Minute Entertainment Media Rich Data

Radio TV Connected PC Mobile

Everyone!! Everywhere!!


Technology

• Content to Consumer using Technology on Platform

• Content using Technology is:

– Created, Captured, Processed & Stored

– Delivered

– Consumed

• Content’s value is Distribution, Virality & Quality

– Consumer paying one way or another to someone

– Tiny resource can create lot’s of $$$

• Paper, Radio, TV, PC’s, Mobile are just a Platform

– Hardware (body)

– Software (soul)

• Technology should be easy to use and transparent


User Experience: < Simple & Intuitive >

3,000 BC Today

Can you believe it took 5,000 years for Simple to be Back


Why start a StartUp ?

The best thing one can do

• Simple “in theory” ;)

– IDEA for a PRODUCT or SERVICE

– LEADERSHIP and ATITUDE to make it

– DISCIPLINE and APTITUDE to stay focused on EXECUTION

• Creating value from dreams an amazing journey and a Godly feeling

– More fulfilling than anything else

• Better than SEX and lasts a loooooot longer ;)


Why not !

• Only the Strongest & Fastest & Luckiest survive

• Very hard work many sleepless nights

– Consider the worst possible outcome

– Pressure isolation from family, friends and social life

– Huge stress on every aspect of life

• All the odds against you 80% to 90% failure

– Very few companies get out of this alive and well

– 10% Survive the first few years

– 2% are Big successes IPO or M&A

– 5% go on in some “Corporate Coma”


Do you “Really” want to do it?

Need some advice ?


The basics a Crash Course!!1) Everything changes all the time so constantly ask the

“Passover question”: What’s different tonight from all other

nights? <Ma nishtana ha-laila ha-zeh mi-kol ha-leilot?>

2) Remember the wise sayings:– Fear only, Fear itself

– Only the Paranoid survive .. and some of the lucky ones

– Success comes from backbone, not wishbone

– The best way to predict the future is to create it

3) Understand and analyze your business– Leadership

– Who cares = Defines your Customers and Partners

– What is your Business after you survive

– What is your Unfair Advantage in that business

– Marketing distribution creating a brand

– Resource planning

– How to fund it? It takes money to make money


LeadershipYou have it or you don't !

• Leadership is the sum of two virtues:

– Competence (your specialty, skills, know-how)

– Authenticity (your identity, character, education)

• The best leaders operate in four dimensions

– Vision => Predict the future (The Dream)

– Reality => Make sure it’s possible (No Madness)

– Ethics => Make it happen ethically (No Crime)

– Courage => It is going to be hard (Survival)

• The challenge is to have these contradictory modes of thinking and behaving at once


Who Cares ?Define Market and Clients

• Those who care are your clients!!

– How many “caring Clients” = TAM

– How much do they care = ARPU

• If you have to Evangelize you are in trouble

– Markets need a very powerful incentive to change

• “Clients and Markets are right” until proven otherwise

– People and companies are self-interested

– If you don't provide the solution your competition will

• Should only sell what you can deliver

• Not everything you build can be sold


What is your Business ?Essential for your survival

• The most important question to answer

– Focus on markets and clients not technology

• Ice Blocks -> Refrigerators

• Few companies realize what business they are in!

– Candles -> Light Bulb -> LED’s

– Main Frames -> PC -> Cell Phones

– OS -> Browser

– Record player -> iPod


The “Unfair Advantage”Essential for success

• The key for long term survival and success

• Unfair Advantage can be:

– Technology

– Marketing

– Sales Channels

– Engineering

– Manufacturing

– Personal charm & Resilience

– Financial Strengths

– Etc….


In large Corporations separate functions

In StartUp's everyone must be involved

Market and Marketing Is Marketing Sales & Advertising?

Manufacturing Sales

Accounts/Finance R&D

Marketing

Business Development

Market Research

Product Planning

Product Specification

Legal

PRQA

HR


Holistic Strategy

1) Who is involved?

MARKETSPACE

POTENTIALOPPORTUNITIES

BUSINESSINVESTMENT

CUSTOMERS CORPORATION COLLABORATORS

CUSTOMERFOCUS

CORE COMPETENCIES

COLLABORATIVENETWORK

2) How can we define relevant market space?

3) What potential opportunities are emerging from the market space?

4) What business capabilities and infrastructure are required?


Resources Planning

• Market and Clients (ROI)= f( ARPU, Cost)

• Team and Competency

– Engineers to create (Energy)

– Management and Corporate Culture for (Focus)

• Money = to make it happen (Funding)

– Money is difficult to find when needed :(

– Money is plenty when not needed :)

• Balance between Greed and Fear


How to Fund it?It takes money to make money

• Funding = Getting money from:

– Ideal Money => Customer, Bootstrap

– Smart Money => Angel Investors, VC’s

– Colored Money => Clients, Corporate Partners

– Stupid Money => Credit Line, Bank Loans

• The world is changing and so should your plan

• “The Presentation”

– Company and Market 4 - 6 slides

– Product and Competitors 4 - 6 slides

– The Financial Plan 3 - 7 slides


Business Plan 1) Company and Market

• Mission Statement

– Company's business (should fit on a business card)

• The Company

– Basic facts (year established, # of employees, location, major milestones, …)

• Team

– Background of management and founding team

– Board composition

• Market

– What problem is the company going to solve

– Trends, historic and projected Market size

– Product match to market needs and shifts


Business Plan 2) Product and Competitors

• Product and Technology– Product description

– Development schedule

– Differentiation

– Price point

• Go to Market Strategy– Sales channels

– Partnerships

– Customers

• Competition– Competitors and positioning

• Barriers of Entry

– How does the company intends to keep its advantage over the competition


Business Plan 3) The Financial Plan

• ROI– Cost of acquisition

– ARPU

– Cost of support / renewal

• Projected cash flow– Product Pricing strategy

– Current balance sheet

– Projected head count by functional area

• Historic and projected P&L– Optimistic

– Pessimistic

• The Deal– Cap table

– Amounts raised before and now

– Valuation asked


Management

• Managers measured by results

– depth of their convictions

– strength of commitment -- and the power of results

• Leaders must keep everyone moving in the same direction, at a sustainable pace

• The leader must be the one grabbing the flag and lead up the hill with everyone following

• A good leader is the one who ensures that others will take the over the flag and continue to charge


Corporate CultureKeeping it together

• People must be included in decisions and process

• Success tied to willingness and ability to take ownership

• Companies depend on people. You can't ignore it or try to get around it

• Don't ask people to set their egos aside for the good of the team. Feed their egos.

• Give each person an area in which to excel, and you'll find that you have a team that really pulls together.

– Make one person team leader of communications, another the team's leader of technology, a third the client-services leader etc…


AttitudeWe all chose our attitude

• Attitude is the ability to manage conflict (polarity). In every aspect of life, polarities are inevitable they are in the nature of things. How we act, how we respond is what separates greatness from mediocrity

• Greatness comes with recognizing that our potential is limited only by how we choose to use our freedom, how persistent and resolute we are - in short, by our attitude

• Talent, Education, Family and Financial Privileges are different for everyone. But we all have the capacity and the duty to be great in what we do

• We are all free to choose and change our attitude


CrestaTech

Hello …


Haber’s Law: If can be done in SW it will

Today

…Billion dollar HW markets converted to Software

1970Audio

1980Video

1990Modem

2000VideoHD

2009Tuners

20103G


2007 The iPhone


Today's Consumers of Content

• Consumers are Mobile• Always connected• Our Devices always with us wherever we go• All Digital Content on the Device

– Contacts, games, E-Books, Skype ….– Pictures, Movies, Videos, Music ….

• Access to Broadcast Content missing – TV, Radio and GPS

George T. HaberFounder & CEO

Reinventing Radio, TV & GPSAll Media Wherever you are

• 2006 Founded by George T. Haber and Mihai Murgulescu

• 2007 Series A Funding from Sofinnova and Andy Bechtolsheim

• 2009 Introduce Universal Broadband Reception: TV, Radio & GPS– Production Ready Silicon: CTC-200/201– Evaluation Boards Shipping Now: PCIe & USB– Receive all digital or analog Radio, TV & GPS

ATSC, DVBT, QAM, NTSC, PAL plus many others

• Production Ready HW & SW with 25 staff and app $9M– RF and PC interface chips production ready– SDR Demodulation of OFDM, QAM, 8VSB, FM, GPS and Analog PAL, NTSC

About CrestaTech

Confidential


The Problems

0 0.5 1 1.5-90

-85

-80

-75

-70

-65

-60

-55

-50

-45

-40

Frequency (GHz)

Sig

na

l S

tre

ngth

(d

B)

TV bands CellRadio

GPS+ MediaFlo

Consistent Frequency Response …

…Broad spectrum

• Existing Standards

ATSC

Cable QAM

DVBT

NTSCPALDAB

DVBH

ISDBT

GPS Radio

ATSC M/H ISDBT SEG1DVBH2

DVBT2

Galileo Glonass

CMMB

GB20600

Compass

• New, Emerging Standards

Unique performance bias for each

standard

Point solutions become impractical


The Solution = Programmable Broadband

8VSB QAM OFDM FM

Software Defined Radio

TRANSCEIVER

Programmable RF

Broadcast / ComPC = Mobile Media CenterUser Experience = Universal TV 2.0

Radio, TV & GPS Reinvented

Dynamic channel grid

Broadcast channels

Stored videos: DVD, Netflix, Amazon

Online videos: You Tube, Internet

Skinn'able,

Cross Platform

On your desktop,

Within browser> Facebook, MySpace or…

User Experience

Confidential

Reinventing Radio, TV & GPSCrestaTV = a New User Experience all Media wherever you are

CrestaTV = the world’s first and only Universal Radio, TV & GPS! .ATSC, QAM, DVBT, NTSC, PAL, FM and GPS available now

ATSC M/H, CMMB, GB20600, ISBTN, DAB, HD-Radio coming soon

Patented Programmable RF and Software Defined Radio with New algorithms for all processors from Atom to multi-core i7

Customer and partner feedback is excellent !

CrestaTV = Radio, TV & GPS Reinvented

http://www.crestatech.com/

http://www.crestatech.com/


The End

Thank You