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Lean Startup: Lessons from the field of 300 Innovation-Corps
(Lean LaunchPad) Teams
Errol Arkilic ([email protected])
M34 Capital Founding and Former Lead I-Corps Program Director
The views expressed in this material are those of the author and do not necessarily reflect the views of the National Science Foundation
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I don’t know… How to make your startup not suck
Errol Arkilic ([email protected])
M34 Capital Founding and Former Lead I-Corps Program Director
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I don’t know how to make your startup not suck
Errol Arkilic ([email protected])
M34 Capital Founding and Former Lead I-Corps Program Director
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Lean LaunchPad: How to make your startup not suck
Errol Arkilic ([email protected]) M34 Capital
Founding and Former Lead I-Corps Program Director
This talk borrows heavily from:
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ENG
NSF GOALI I/UCRC
PFI
ERC
NSF STTR
NSF SBIR
Academia
Small Business
Investors
Industry
Valley of Death
-----------II-R----
------II-B---------------------
------------- Supplements
Res
ourc
es A
vaila
ble
($)
Discovery Development Commercialization
Level of Development From
Angus Kingon
Technology Innovation Spectrum
Unbridgable Gulf of Death
I-Corps
The design, invention, development and/or implementation of new or altered products, services, processes, systems, organizational structures, or business models for the purpose of creating new value for customers and financial returns for the firm
Innovation*
*Innovation Measurement A Report to the Secretary of Commerce January 2008
Why most products/companies fail
YOU’RE BUILDING SOMETHING NOBODY CARES ABOUT
Why most products/companies fail
YOU’RE BUILDING SOMETHING ABOUT WHICH NOBODY CARES
What can you do?
• Admit there are unknowns • Develop hypothesis to probe unknowns • Use appropriate metrics to validate • Close the hypothesis-testing loop • Rinse-and-repeat
Startups Fail because they Confuse Search with Execution
-Steve Blank
Where are You in the Life Cycle
Search
Execution
Execution:
• Repeatable Internal Processes • Knowns:
– Customers, Features, Channels, Pricing
• Management: – Formal / The Suits – Characterized by “Only the Paranoid Survive”
• Customer Creation + Company Building • Goals are set quarterly
Search:
• What Process? • Knowns:
– Runway • Management:
– No management, but founders with leadership/vision – Characterized by “Stark Raving Terror”
• Collecting and analyzing: Search and Pivot • Customer Discovery + Customer Validation • Goal: To get to a sustainable business model
What happens when you confuse Execution with Search
YOU BUILD SOMETHING NOBODY CARES ABOUT
Data-Centric Approach Applying the Scientific Method
• Hypothesis: – Here’s What We Thought
• Experiments: – Here’s What We Did
• Results & Insights: – Here’s What We Learned
• Action: – Here’s What We Are Going to Do Next
Business Model Canvas
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Academia
Small Business
Investors
Industry
Valley of Death
Res
ourc
es A
vaila
ble
($)
Discovery Development Commercialization
Level of Development From
Angus Kingon
Technology Innovation Spectrum
Building the Nation’s I-Corps “Fabric” - How I-Corps evolved?
I-Corps Nodes
I-Corps Sites
I-Corps Teams
I-Corps Mentors
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July 2011 I-Corps Teams
October 2012 I-Corps Nodes
January 2013 I-Corps Sites
#1
#2
#3
I-Corps Team
• Entrepreneurial Lead – Post-doc or Student to move it forward
• I-Corps Mentor – Volunteer – Domain-relevant volunteer guide – Proximity is better
• PI – Researcher with current or previous award
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Credit: © 2011 JupiterImages Corp.
I-Corps Infrastructure
• Nodes: – Ga Tech – U. Michigan – Bay Area: Berkeley, Stanford, UCSF – DMV: UMD, Va Tech, GWU – NYCRIN: CUNY, Columbia, NYU
• Sites: – U Akron – UCSD – UIUC
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NSF I-Corps Flow Diagram
Recruiting processes
(NSF)
Pool of eligible Teams (NSF)
Team Selection
(NSF)
Node Assignment
(NSF)
Awarded I-Corps Teams (NSF)
Curriculum Delivery &
Refinement (Nodes)
Customer Discovery
(Teams/Nodes)
Business Model
Canvasses (Teams)
“Go” Decision (Teams)
“No-Go” Decision (Teams)
Resource Infusion
Strategic Partnership
Private Capitalization
Public Funding (e.g., SBIR, STIR, …. )
Private Sector
I-Corps Curriculum • Based on hypothesis-driven business-model
discovery – Pioneered by Stanford and Steve Blank
• Focuses on addressing market risk • Requires getting out of the lab
– AT LEAST 15 hours of prep per week • Mandatory for all I-Corps participants
– First 3 Days (at one of the five nodes) – 5 follow-on webinars with team presentations – 2 Days (lessoned learned )
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Lean Approach to Product/Company Building
• New way of looking at Startups and Product Launch
• It is trendy now, but there is real analysis behind the hype – Don’t let cynicism blind you to the value
• I’ve scratched the surface – Study the tool set – Become a student
When NOT to use a Lean Launch
• When it doesn’t matter if your product/company fails
• When your Technology Risk REALLY is the biggest risk element
• When doing so causes you to miss the wave (bubble)
Five Takeaways
• Recognize the Valley of Death • Embrace the Scientific Method to probe unkowns • Don’t Confuse Search with Execution • Use the Business Model Canvas • This isn’t going away
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Thank You Questions?
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