What The Hell Is A Tech Startup?

Anthony FrasierFounder, The Phat StartupPartner, BrickCity Tech / Converge

I founded Playd, an app that allowed gamers to share their activity across multiple platforms. I was featured on “CNN’s Black in America: The New Promised Land - Silicon Valley.” I also made NBC The Grio’s 100: Making History Today list. Was featured in Tech Crunch, CNN Money, Black Enterprise, and speak at various industry events.

Lets Check Out Some

DEFINITIONS

“A startup is a human institution designed to

deliver a new product or service under conditions of

extreme uncertainty.”

- Eric Ries

“A startup is an organization formed to search for a

repeatable and scalable business model.”

- Steve Blank

So, which definition is the right one?

So, which definition is the right one?

I SAY BOTH.

We come up with new ideas all the time. But, we aren’t always sure if it will make money and solve a real problem for a huge

amount of people.

We also wantto change the

World.

That’s what a tech startup is all about.

Square makes it easy for anyone to accept credit card payments from their mobile phone.

Square makes it easy for anyone to accept credit card payments from their mobile phone.

Huge problem

Square makes it easy for anyone to accept credit card payments from their mobile phone.

Huge problem

Huge market

Airbnb makes it easy for anyone to find or host a place for people to stay.

Airbnb makes it easy for anyone to find or host a place for people to stay.

Huge problem

Airbnb makes it easy for anyone to find or host a place for people to stay.

Huge problem

Huge market

Everybody isn’t so lucky.

of startups fail.

75%

1. Not enough people know about the created product. The people who know about it don't understand the product. The people who understand it don't want it.

Quora: Reasons Startups Fail

1. Not enough people know about the created product. The people who know about it don't understand the product. The people who understand it don't want it.

2. Management teams lack flexibility to change direction when needed.

Quora: Reasons Startups Fail

1. Not enough people know about the created product. The people who know about it don't understand the product. The people who understand it don't want it.

2. Management teams lack flexibility to change direction when needed.

3. Resources (funding/time/labor) are managed poorly.

Quora: Reasons Startups Fail

1. Not enough people know about the created product. The people who know about it don't understand the product. The people who understand it don't want it.

2. Management teams lack flexibility to change direction when needed.

3. Resources (funding/time/labor) are managed poorly.

4. Inability or failure to obtain and/or maintain sufficient capital (for a variety of reasons), whether or not managed poorly

Quora: Reasons Startups Fail

What kind of people create tech startups?

What kind of people create tech startups?

Crazy people.

What kind of people create tech startups?

Crazy people.You have to be crazy enough to think it will work.

It’s always a risk.

Anyone can create a tech startup, all you need is the right skills and/or the right team.

Hacker + Hustler + Designer = Startup

I like Dave McClure’s formula:

HackerSomebody who can code and prototype.

HustlerSomeone who can sell and make the right connections.

DesignerSomeone who makes sure it’s usable and looks good.

As a founder you may wear multiple hats at different times.

You should still learn to prototype.

“Learn how to hack something together so that you can get people interested in your idea, your project, your startup. If you can do that, then you have a better chance of success.”

-Fred Wilson

What about money? Startups are funded several ways.

Bootstrap

You can fund your company with money out of your own pocket or from friends and family. Some startups with a good business model and market can fund themselves from day one.

CrowdfundingWith crowdfunding a large group of people can come together to help fund your project. Supporters don’t usually get equity or stock in your company. As this source of funding becomes more popular, that may change.

Angel InvestorAn angel investor, helps you get the cash to launch or grow at an early stage. The angel usually gets equity and ownership in return for their investment. Angels can be any person of wealth. They are also a good source of contacts and advice.

Venture CapitalVC funds invest larger amounts of money than angel investments. If your business is off the ground and you need money to expand, you

will most likely seek these larger firms. They also take bigger amounts of equity and control.

Books you should read!

Thanks!

Anthony Frasierinfo@anthonyfrasier.com@anthonyfrasier

Come check me out at:anthonyfrasier.com &ThePhatStartup.com