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On startups Hild Imre

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On startups

Hild Imre

04/15/2023 2

20 years

1990-1993 Hungary - Tourism

1998-2003 Lehman Brothers, New York, NY (Conduit Hotel Securitization)

1993-1998 Ithaca, NY - Cornell University (B.S. & MBA)

2003-2004 Hild’s, owner (Securitization Advisory)

2005-2009 OTP Life Annuity, founder, CEO

2004-2005 Hild Life Annuity, co-founder, owner

2012- iCatapult

2009-2012 Primus Capital

04/15/2023 3

What do you need for a venture?

+ 1. Entrepreneur

+ 3. Idea or concept

+ 2. Co-founder and team

+ 4. Capital

Entrepreneur Test

How do you work...?

A. Fast ....speed mattersB. Precise ...it has to be perfectC. BothD. …what do you mean by work?

Startup development – a word about the co-founder

5/2/145

+ Dissolving dilemmas, doubts

+ Reality check

+ Minimum 1 maximum 2

+ Reasoning practices

+ Do more if you work together

STARTUP PIRATES

+ How to keep founders motivated?

A Human institution operating under extreme uncertainties

An organization searching for a solution

A group of people conquering the unknown

What is a startup?

Define by non-quantifiable qualities

WHY DO YOU START A STARTUP?

- for good cause- for money- for fame- for fun- for being cool- for independence- or to simply to be:

Startup Operations – Running a gig

2023.04.15. 8

Idea Funding Product development Sales

VALUE PROPOSITION

• Value is material, emotional or abstract benefit to user or client

9

VALUE PROPOSITION

• Value is material, emotional or abstract benefit to user or client

10

THE STARTUP PROCESS

• …I have an idea!• Idea = guess• Guess = hypothesis• Guess about the product, market etc.• Test, test, test a.k.a. ask questions• Your offer (a.k.a. value proposition) is…

• vitamin (nice to have)• medicine (MUST have)

• If at least 70% significance = MUST have

• Hypothesis• Get out of the building• Test and measure responses• Learn facts• Build MVP• Test (measure) traction• Learn until you have a repeatable model• ….. Build - Measure - Learn cycle

A STORY

A father and his son are mountain climbing.Both of them fall down and are injured.

One ambulance helicopter takes the father to a hospital in Györ, the other takes the son to a Budapest hospital.The son is rolled into the operating room in Budapest

immediately. The surgeon steps into the operating room, looks at him

and says: I can not operate on him, he is my son.- - ?? - -

THE SINGLE THING THAT HOLDS YOU BACK FROM SUCCESS

Lack of funding

Not good enough idea

Mixing Assumptions with Facts

Few Sales people

Not enough customers

Too much competition

Slow patent registration

Customers do not understand

Startup Operations – Running a gig – for success

2023.04.15. 15

Market opp. identification

Prototype a solution

Test and iterate Fund Scaling

LEARNING IS EVERYTHING

If you're not willing to learn, no one can help you.

If you're determined to learn, no one can stop you.

YOUR No.1. TASK AS AN ENTREPRENEUR

REPLACE ASSUMPTIONS WITH FACTS

Richest people on Earth

18

1. Bill Gates, Net Worth: $76 BSource of wealth: Microsoft

2. Carlos Slim Helu & family, Net Worth: $72 BSource of wealth: telecom

3. Amancio Ortega, Net Worth: $64 BSource of wealth: retail

4. Warren Buffett, Net Worth: $58.2 BSource of wealth: Berkshire Hathaway

5. Larry Ellison, Net Worth: $48 BSource of wealth: Oracle

6. Charles Koch, Net Worth: $40 BSource of wealth: diversified

6. David Koch, Net Worth: $40 BSource of wealth: diversified

8. Sheldon Adelson, Net Worth: $38 BSource of wealth: casinos

9. Christy Walton & family, Net Worth: $36.7 BSource of wealth: Wal-Mart

10. Jim Walton, Net Worth: $34.7 BSource of wealth: Wal-Mart

11. Liliane Bettencourt, Net Worth: $34.5 BSource of wealth: L’Oreal

12. Stefan Persson, Net Worth: $34.4 BSource of wealth: H&M

13. Alice Walton, Net Worth: $34.3 BSource of wealth: Wal-Mart

14. S. Robson Walton, Net Worth: $34.2 BSource of wealth: Wal-Mart

15. Bernard Arnault & family, Net Worth: $33.5 BSource of wealth: LVMH

Day 1

CONDITIONS OF PITCH

2023.04.15. 20

1 Audience of the pitch – customers, partners, investors, press

Form – Elevator, podium, one-on-one 2

Your objective – investment, sales, PR, partnership etc.3

PITCH – the summary of your startup

21

1 Describe Problem – Make it obvious

2 Solution – Great companies do 1 of 3 things: Money, Power, Pleasure

1

3 If you DEMO: PRACTICE, PRACTICE, PRACTICE

3/2 Prepare for failure and learn to handle it (no projector, strange characters etc.)

4 Market Size, ways to assess markets, point to trends

5 Business Model – how you plan to make money (or sustain business)

The Pitch – aviod these:

22

1 Describe Problem – No one’s problem

2 Solution – does not fit problem but what entrepreneur holds true about it

1

4 Market Size – small subset of a tiny market OR never gets mentioned or bottom up

5 Business Model – we will hire sales people or W-W-A-FB

Pitch Guidelines

2023.04.15. 23

6 Competitive Advantage – we have no competion OR only one, Google

7 Go-To-Market Strategy – give it away for free or give money to people to share it online

8 Team / Hires - we have the best team, no one is missing

9 Financials – Lot of funds upfront, lot of revenues in the distant FUTURE

1

Pitch Guidelines

2023.04.15. 24

6 Competitive Advantage – here you can increase your credibility

7 Go-To-Market Strategy - best opportunity to shine, or highlight market understanding

8 Team / Hires - have good composition of hustler-hipster-hacker. Know whom you want +

9 Financials – what drives revenues? Burn rate and justification for that

10 Call To Action - …so why did you tell them all this?

11 Summary / Recap

1

Market trends

2023.04.15. 25

The Internet economy – 5th largest country in the world (2016)

Internet Economy – a real country on its own?

Growth rate - size of Hungary

Platforms growing on platforms – Busuu, Wix

Visible, 609 million strong English speaking segment around the world

Most affluent and connected humans on the planet

Typical presentation mistakes (to avoid)

• FORM• Looking at slides, cofounders, shoes etc.• Speaking at a low tone• Speaking fast or in spurts• Font size – average age of audience• Eye-candy

• CONTENT• Slides are there to support YOU• “Talking about talking”• Using too much lingo• Responding with a question• Brushing off any criticism

2023.04.15. 26

A PITCH

2023.04.15. 27

Lessons of the pitch• Form• No slides• Good, foolproof demo• Bit edgy – seems mortal• Reasonable, approachable, no goofyness

• Content• Tons of numbers (28!) – implies a LOT of research• Simple language, no lingo• Simple business plan

2023.04.15. 28

Recommended reading

- Lean Startup by Eric Reis- Early Exit by Basil Peters- Startup Nation by Saul Singer and Dan Señor- Venture Deals by Brad Feld

Blogs:- feld.com- avc.com- Open View Ventures blog- Hacker News (YCombinator)

Contact and more info

30

E-mail: [email protected]

LinkedIn: hu.linkedin.com/in/hildimre/

This presentation available at:

http://www.slideshare.net/hildimre