Bootstrapping 101 Bootstrapping 101 with your host Mike Jones S Michael Jones • • • • • • Founded 3 Companies, Sold 3 Raised $3M, Lost most of it for my investors. Sit on 3 Startup Boards, 3 Mature Company Boards (30M+) Sold 3, Assisted 2, Bought 3 Invested in 4 Startups CEO of Tsavo S S You • • • First Time Entrepreneurs? Second Time Entrepreneurs? Current Company Funded? • • Angel? VC? Getting Started • • • • Sole CEO • How Democracy often fails in Capitalism Partners & Founders & Roles Key Staff Buy/Sell Agreements & General Legal Setup • Aim for success, prepare for failure Founder Lessons • • Demise of PBJ & Lack of Buy/Sell Agreement Exiting Founder in Userplane with Buy/Sell Agreement Consulting your way to Product • Consulting & Development Services • Flickr, Blogger, Userplane & Many Others Userplane, Early Years • • • • • 3 Founders (Tech, Product, Business) Consulting Jobs to Pay Bills Clients: Studios, Red Bull, etc. Introduction of AmIHot & Development of Product 6 Months of Market/Sales Before Traction Pros / Cons CON Massive Distraction Takes forever to launch Learn new industries internal project Can leverage consulting Doing crappy websites, engagement to build license draining your creativity and of software (presell) burning your staff Might be your only option : ) PRO Pay Bills Getting $$ • • • • • Friends & Family Angel Formalized Angel Group VC Strategic Investor (?) Breakdown On Raise Amount <200k 200<500k 500<1M 1M+ Option Friends & Family Angel Formalized Angel (TCA) VC Raising Friends & Family • Chances are you will lose their money, will you lose their friendship? • Your responsibility to your seed investors. • How much do they get? • Lesson: Investing.com and Alan! Spend Management Always question where you and your team are spending their time, don’t be ridiculously cheap (Don’t build your own PC’s) Item Staff Servers Legal Contractors Rent Option How to pay? Trade/Branding Firm Selection Design/Tech Shared Spaces Recommended Startup Vendors Service Legal Accounting PR Hosting Payroll Vendor Greg Gilman David Chaskis Edge Communications Media Temple Paychex The Board • • • • • • The Role of your Board Difference between Advisors and Directors Who goes on the board and why? • All Founders, CEO? CTO? What is the board good for? How much do I give / pay to my board? How do I communicate to my Board? Questions?