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Mentorship

Alon Cohen – 2013

[email protected]

Call us 24/7 (800) 998-7087 www.phone.com

Agenda

•  VocalTec or My Story •  Mentorship

– Should you believe what I say? – Who should you listen to?

•  Last word of advice

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The Beginning - 1989

FYI: VocalTec – First VoIP company.

•  2 geeks garage operation – Alon Cohen – Lior Haramaty

•  Developing a sound card for a PC •  Starting with $4000 gift

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Staying Afloat 1989-1992

•  Selling Sound cards for different applications •  Stand alone sound devices

–  Ice-cream truck music box

•  Hebrew TTS for blind people •  Reaching out to the US market

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Re-Inventing the company 1993 -1994

•  VocalTec was losing the battle with sound cards –  The keyword was SoundBlaster compatibility

•  Raised money –  Vardi: “The CAT will not sell but I saw good people, you

should invest”

•  Sat down for a problem solving session (1993) –  We understand Telephony –  We understand Computers –  We understand integration of Computer & Audio –  We bet that every computer will have sound

•  The conclusion –  Build a Phone Application that use PCs & LAN –  Novel -> Net-Bios


From LAN to WAN

•  Is this VocalTec’s support? •  Support: Yes..

•  Your software does not work… •  I am trying to call from England to France

over my fast 64K Line, and it sounds bad. •  Did you press the compress button?…

•  Wow!! now its working, I can save a bundle on my long distance phone calls!!

•  That was it. –  We now had a clear direction. –  We had to make it work on the Widest Public

Network available.


Creativity Wins - 1995

•  Developing SW only Real-Time audio compression •  Using IRC – as a directory service •  Only small luck..

–  All the experience we had from the Sound Cards days –  All that we developed for the LAN –  Was needed and operating in full force on the Internet

•  The final touch –  Converting every 3 bits to 1 bit (dropping 66% and losing only 25%)

•  E-commerce engine •  Internet download •  Mass distribution

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1995 – 1996 The Launch

•  Feb 1995 –  First to market –  Good PR People –  Getting front page headlines

•  1996 - EXIT –  Going public (Nasdaq: VOCL)

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What else

•  VocalTec - IPO •  RemoteAbility - sold •  ExciteView – nice demo, wrong partner •  BitWine – sold and came back •  Phone.com – still on it

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Mentorship

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The Sample Size Theory

N = 1/(B^2) •  So for:

–  N = 100 we get an +/-10% error (Good) –  N = 3 we get a +/- 60% error (Very bad) –  N = 2 you get a +/70% error (Even worse)

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And here is the problem

•  Most mentors (like me) had N = 1,2 or 3,4 experiences. •  I.e my conclusions has potentially +/-60% deviation from the truth

–  Time is different –  Technology changed –  Market players morphed –  And people are never the same

•  Your startup is most likely different –  (Some principals are similar, like “buy low sell high”)

•  However, the details make all the difference –  What to sell, to whom? When? Where? and at how much?

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Do you know what is best?

•  Most starting entrepreneurs thinks they do –  N = 0 --> B = +/- A lot –  Confident people are more susceptible to errors…

•  Hence, not a good practice! •  So:

–  First listen (with a very open mind) –  Preferably to people with some gray hair (or larger N) –  Than decide what’s relevant and what’s not for your case.

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Pulling in Different Directions?

•  Investors are not friends nor good mentors!!! –  Get investors only as absolute last resort –  They have their own agenda –  They think they know what is best for you and your startup

•  Probably based on past few successes, if any •  Or maybe based on good grades & intuition.

•  They are good smart people –  They are good in what THEY DO –  Much less in what you do.

•  “The house on the hill” problem –  If you succeed I will be able to afford it.

•  (Contributed by an investor)

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Take it or Leave it

•  Keep a file with ideas, keep updating them, keep adding - Ideas do expire •  Identify problems in your surroundings

–  Solving them is an opportunity

•  It is simpler to sell an investor a dream than a working product –  Try and let me know what worked better in your case

•  Never say the word simple to an investor •  Extend your runway – where you start is almost never where you finish •  Never work for free, give value or equity equivalent value to your time •  Be humble, listen to others, keep an open mind •  Ask many, decide with few •  Find good partners (it is hard, I know) •  Start with an API (if relevant) •  Always have a business model •  Luck has a lot to do with success •  Be nice to your employees, people do not forget. One day they will hire you.

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Thanks

Alon Cohen [email protected] BLOG: alonc.blogspot.com Phone.com

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How can Phone.com help you

•  We help young startups with free services •  Look for our coupon code with:

– NJTechMeetup – Or – And few more

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Phone.com

•  Hosted, in-the-cloud PBX services •  Launched the service in 2007 •  Selling - mostly online •  Self-provisioning platform •  Highly praised USA-based customer support

•  (Yes, we can give you US numbers free for a year)

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Features - To mention a few

•  Forward calls outside the US. –  Change destination from anywhere to anywhere

•  Rules-based call routing and schedules •  Voicemail transcription •  Unlimited IVR •  Global Numbers, Toll Free Numbers, iNum Numbers •  DIDs forward SMS to cell or e-mail •  Soft Phones (PC and Mobile)

–  Point to Point Video using SIP and h.264 •  Address book sync •  HD Voice using G.722

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