Draper University Fall 2018

Day 0: Superhero Oath

DAY 1: Sep 18

Knightscope

• engineers are good in a counstrain bounded condition
• 80B - 100B spent on autonomous car

  • still cannot ship

  • WHY

    • regulation
    • the tech is hard, it take more time
    • insurance framework, autonomous dog?
    • generational, senior exective of BMW didnt grow up
      • they just build prototype to keep media's eyes
      • we are the first country to run millions of devices, 24 hours

  • it's either hardware or software

    • rase 1M seed round, convertable note
      • no product, no team
      • debt converted to 20% of the next round
      • plug in play in 2014, accelarator, ready to go and need help, the best decision they made, have relationship, 400 startups in one rooftop, the right people to pitch with, super effecion
        • incubator -> find ideas and go
        • demo day, every 3 months, 1.5M, 265 days to raise seed round
        • price, right, make a negotiative
        • buy 5% in the open market, is bad news in silicon valley
        • 20% investment, celebration?!, only optimize to the investor, product market fit
          • need to think about the right investor
      • 2015, 7 machines, end up selfies figure
      • you can do public offer to a private company
      • regulation A+2, a public company, but the share not trade.
      • 4 VCs vs 6000 public investors(1-3 emails about checks, introducing) financially-motivated
      • culture dynamic, instituitional knowledge
      • mentors, coachings

  • takeaways:

    1. dont'e let everybody say NO to you
    2. be careful where you take money from
    3. be thoughtful to think about BOARD

  • notes

    • they try to be profrssional, conduction professionally, show up on time, be thoughtful and be respectful
    • in the US: 80B, 800 VC, coperational investor, some VC is super helpful, 400M didn't sell any board seat, 6 investors, attonershop

DAY 2: Sep 19

Blockchain 101

Speacker: Aaron Wu ([email protected])

• What is blockchain
  • append only shared db of tx btw multiple stakeholders
  • parties have a mechanism for a sgree addition to the db = consensus
  • txs are auditable while still maintaining privacy

Class: startup pitch

• not pitch just for funding, for potential investor, partners, hires, shwo them the biz stands

• 10-20 sentences

• 5- 10 pages, 2 mins, (usually 2-5mins pitch)

• loud enough, don't rely on tech suuport

• decks

  • investor deck, more than 10 sliders, read alone
  • presentation deck, all images, 10 sliders

• slider

  1. Comapny Name
     • vision statement (eg. think different)
     • preferred -> mission statement / company tagline (eg. short term, how you achieve, we build smartphones for eveyday people)
  2. Hook
  3. Story: Hook 'em, Emotional Power
  4. Problem: pain point, big enough problem, two sentences for each
  5. Solution: two sentences for each, put it stupit, put it simple, what value people will get from what we do
  6. Product: go through the application, three steps
  7. Market: stats
     • total market, total addressable market, percentage of the market you will pentrate, market trends and analysis, show any market research if you have it
     • from all market, partion of the market, if we cover 15%, then we can achieve bla bla bla
  8. Traction: show the need, for the feature you want to build
  9. User Testimonials
  10. Competition
  11. Competitbe Advantage, dont put feature as advantage, put value as advantage
      • 1st to the marketk, brand&design ...
  12. Go-To-Market Strategy
      • cost of acquisition
  13. Adoption Strategy
  14. Revenue Model
      • B2B, B2C, B2G etc...
      • price point, pricing
      • how is the investor making thier money back: exit, acquisition, IPO
  15. 5 yrs projection
      • how long until you break even?
      • chart, graphs, etc.
      • they know is bullshits, but it shows them you are doing something
  16. Team
      • the most importantpage
      • spent the most time here
  17. ASK
  18. Financial

Speacker: Blockchain for social justice

• Developing a Use Case
  • a biz that has blockchain, not a blockchain that has a biz
  • Asset Mapping
    • What are the probem?
    • Who are the key players
    • Waht "assets", are we tokenizing
    • What are the relationships btw the players
• Token Economics
  • what is "currency"
    • type of currency
      • trading
      • bartering
      • predious metals
      • symbolic materials items(ie. covery shells)
      • fiat
      • crypto
    • types of capital
  • what type for blockchains
    • public
    • private, example applications include db management, auditing
    • federated, operate under the leadership of the group
  • types of tokens economics
    • security tokens
    • utility tokens, use the token to do thing in the blockchain
    • dual tokens economy, MakerDAO(maker as security, DAO as utility token)
    • payment tokens, stable token
  • game theory + consensus model = token economics
    • game: how you engage perticipants, that rules do participants follow, how rewards are distributed for actions
      • players + rules(what I need to) + consequences(what if it goes bad) + payoff(what if it goes good)
    • consensus: ensures that the next block is good
  • think about:
    • what behaviros are you incentivizing
    • what outcomes are you hoping to achieve
    • who are your validators?(manual, automated)
  • bus model for social impact
    • value proposition
    • business model -> business model canvas
  • game theory
  • incentive model
  • consensus algor.
• think about
  • equity
  • gas, acces
  • cust. pain and gains
• resources
  • positiveblockchain
  • b4sj

DAY 3: Sep 20

Thinking 10X

• switch the camera to the projector
• at least 10X(10x vs 20X)
  • Aim low -> reach your goal -> and avoid disappointment :(
  • you are not build your new habits, you are not doing new thing, your are not try new thing
  • turn something nobody want to peopel want, no competitor
  • the way to get largest pie is to get it from others portion :(
• Be a Verb
• local minimum, global minimum

Lean startup for Founders

Speaker

• David J Blank

Books

• The lean startup
• Business Model Generation

Lean startup

• The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers' hands faster.
• Start with LEARN
  • what do we need to learn
  • Do they? have this Q? have this problem?
  • should we?
  • can we? regulations, policy, tech
• How to MEASURE
  • how do we MEASURE to LEARN
  • qualitative, why
  • quantitative, what
• BUILD
  • What do we BUILD to MEASRUE to LEARN
  • interviews
  • landing pages,fb compangin -> 15% to give emails(usually 15% of convertion rate)
  • MVP
• go back from BUILD back to MEASURE and LEARN, but always starts with learning,
• if you can do LMB faster than competitiors
• business model
  • a business model describes the relationale of how an org. creates, delivers, and captures value.
• espresso exmaple of using biz model canvas
• three points
  • Viability, make moneh with it? sanity check
  • Feasibility, can you build it? build, borrow, or buy?
  • Desirablity, do ppl like it?customer development
• simple straightforward -> the ginger project
• Feature tub <- google use it a lot
• pretend to own, pilot PDA
• Crowdfunding
• buffer
• uncertainty - time - fidelity

Day 4: Sep 21

Content Marketing

• Components of COntent Marketing
  • Blog/Vlogs
    • attract organic traffic
    • Keyword Research <- Tool MOZ: create your content strategy -> search keywork -> search difficulty score
    • Tracking
    • Make the most of your content
  • Premium Content
    • recipes, videos, how-to's
    • Instagram
      • posting consistently
      • engage with others
      • Longtail Hashtags (#food vs #veganfood, better)
      • Use the max of 30 hashtags
    • Instagram stories
      • Live/Behind the scences
      • How-To
      • Polls
      • Tagging
  • Influencer Merketing / Partners
    • expand audience
    • social proofing
    • brand awarness
    • product feedback
    • ways to track influencer marketing
      • affiliate links
      • coupon codes
      • informal brand ambassador programs
      • actions-based agreements
  • Landig Page
    • convert traffic into prospects
  • Lead Nuturing
    • move prospects through sales funnel
  • Tools
    • Marketing automation: Hubspot
    • Video analytics: Wistia
    • Integrations: Zapier
    • Quick design tool: Piktochart, Canva, Visme
    • Sales and email: Hubspot Sales, MixMax
    • Scheduling: X.ai, Calendly, Hubspot
  • Kirsten: [email protected]

Where value is created

• silicon valley tech trends
  • electronic tool, HP
  • semiconductor, Intel, AMD
  • enterprise, SAP, EMC2
  • network, cisco
  • consumer, Google, FB, Linkedin, Amazon
  • smart enterprise, Palantir...etc
    • smart enterprise use new cloud, data sources, and big data technology to integrate commercial data into coneptual frameworks that empower knowledge worker to solve non-linear problems.

Down is not defeat

• most of people feel not happy when they pursue for happiness
• Keys
  • HEALTH: take care of your health of mental and physical, loneness
  • GOOD RELATIONSHIP: be good with your friend
  • FININCIAL SECURITY: be financial secure
  • PURPOSE: your purpose

Product Playbook

• how to harness emerging technology, to create a truly disruptive startup.
• Chad Lonberger, CEO Presence
• stats
  • 42% of startup failed becasue no market need
  • 255 weeks to know no market need
  • The best product teams in the world do this.
• to get
  • differentiated
  • difensible
  • disruptive
  • love by users

Sep 25: Being a VC

• Deal sourcing
  • team
  • tech/product detail
  • market(TAM)
  • Sale pipeline/Customers(current and projeted)
    • ARR, CAC, LTV
  • compeition
• Due Diligence
• Porfolio Support
• Road Mapping

Oct. 2

how to sell things

• how sales has changed
  • we all like buying, but we hate to be told to buy
  • a customers need a problem to buy
  • behind the cloud, SaaS, saleforces
  • traditional funnel, from wide to narrow /
  • what we can solve the problem, it's nothing about benefits or features
  • Leads > commit > money
• Churn
• To Sell
  • TONE
    • how to speak
    • the tone
  • ASK Open/Close Question
    • how is your weekend, good
    • what was good about it
    • How to win friends and influence people
    • Influence by Robert Cialdini
  • LISTEN
  • KEEP NOTES
    • show empathy
  • E
  • Relationship

Corporation in the US

• What do founders need to know about immigration
  • visa
  • green card = permanent residence
  • adjustment of status(f1, h1 t green card) v. consular processing(apply green card in your own country)
  • duration of visa, status
  • citizenship
  • immigrant v. nonimmigrant intent

Oct. 12

Founder's Dilemma: Cap Tables, Dilution & Term sheets

• Investment

  • Convertible Notes(4-6% interests)
    • Cap(lower better for investor), Discount
  • SAFE - simple agreement for future equity(not a loan)
  • 4 yrs Vest(2% per month), 1 yr cliff
  • ISO to employees, NSO
  • pre-money valuation -> post money valuation
  • reverse split 5:1 convert
  • founder lock up, emplayee lock up

• Term Sheets

  1. Valuation
  • pre-money, post -money
  • emplyee pool
  • amount to raise

Author

• Andy Chen