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Date post: | 17-May-2015 |
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Bootstrapping 101 with your host Mike Jones
Bootstrapping 101
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
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
PRO CON
Pay Bills Massive Distraction
Learn new industriesTakes forever to launch
internal project
Can leverage consulting engagement to build license
of software (presell)
Doing crappy websites, draining your creativity and
burning your staff
Might be your only option : )
Getting $$
• Friends & Family
• Angel
• Formalized Angel Group
• VC
• Strategic Investor (?)
Breakdown On Raise
Amount Option
<200k Friends & Family
200<500k Angel
500<1M Formalized Angel (TCA)
1M+ VC
• 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!
Raising Friends & Family
Spend Management
Item Option
Staff How to pay?
Servers Trade/Branding
Legal Firm Selection
Contractors Design/Tech
Rent Shared Spaces
Always question where you and your team are spending their time, don’t be ridiculously cheap (Don’t build your own PC’s)
Recommended Startup Vendors
Service Vendor
Legal Greg Gilman
Accounting David Chaskis
PR Edge Communications
Hosting Media Temple
Payroll 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?