Startup Investment

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Startup Investment Powered By Docstoc
					                                                                           M. Fruin
                                                                           Version 1.2
STAGES OF DEVELOPMENT – from startup to market
2 Stages, 4 Phases & 30 Steps

STAGE ONE: PRE-INVESTMENT (PRE-MONEY)
Phase One (great idea/s and more)
Startup – an original idea (with key technology components)
Team building: founders vs. non-founder; specialists vs. non-specialists
First business plan: compelling, feasible, and doable

Shaping the internal (organizational) environment
       Employee scouting, selection, retention, reward
       Educating entrepreneurs
       Controlling costs
       Contacts: R & D capabilities, lawyers, CPAs, investors
Building social networks
       Getting support; finding advisors; plugging gaps
Writing a full-blown business plan
       How much, how long, how big

Technology development: core and enabling technologies; complementary resources
       Creating the commons; building synergy & making connections
Physical location of business & team;
       To incubate or not; separate or single location; integrating activities


Phase Two (product in development)
Learning to knowledge development: defining, linking & integrating functional
capabilities & organizational systems

Prototype development

Market analysis

Product development based on market research (second iteration); productizing

Preparations for market entry

Alpha, beta product rollout

Initial product launch; production upgrades & new versions

Upgrading functional systems; building accounting and financial systems

Investor relations; finding, getting & managing serious mone
STAGE TWO: POST-INVESTMENT (POST-MONEY)
Phase Three (selling; revenues and reviews)
Alliance management; securing, deepening, exploiting alliances

Knowledge management (beyond functional knowledge)
      Building learning systems
      Cross-functional & field learning integration
      Organizational boundary issues; onion ring model of organizational capabilities

Scale business; commercializing
       Managing the commons; driving the 4Ss
       Organization and business process design

Product Marketing – 4Ps
       How many versions & at what price points?
       5th P: partnering

Going global or at least international

Sales management; direct/indirect; supplier and channel relations

Planning for future; how big & how ready are you?

Professionalizing management: to MBA or not to MBA


Phase Four (schmoozing, corporate relations, public image)
Becoming a corporation; what kind of a corporation

Building a governance system; managing relationships with employees, customers,
suppliers, shareholders, other stakeholders & investors

Financing rounds – seed through first, second, third & beyond

Positive growth strategies without selling short the future

Exit: privately held; M&A; IPO


Prof. Mark Fruin 4/20/05

				
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