Date post: | 20-Sep-2014 |
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Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Scaling StartupsBen Fletcher, TalentPuzzle
@benfletch
#ScalingStartups @TalentPuzzle
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Chris Tottman @NotionCapital
Building a winning team:Recruiting Star Players
Chris Tottman @NotionCapital
2FUNDS
6 Inv.20 to go
9 Inv.4 Fund Ret.
$30m $110m2000 Cos Reviewed
Chris Tottman @NotionCapital
3$1 billion2k jobs7yr Hot 100
Chris Tottman @NotionCapital
9yrs to build9m users
20k customers
$150m revenues
$700m exit
0 to 650 people
MessageLabs
Chris Tottman @NotionCapital
30 Biggest SaaS providers solved the 3 biggest challenges facing every founder/CEO:
• Acquiring capital• Consuming customers• Hiring the best talent
We believe category leadership is a talent driven economy…
Chris Tottman @NotionCapital
What we look for: Functional View
You must fill the gaps with world class talent & remain capital
efficientYou have to
continue to out hire the competition in
each area YoY
Chris Tottman @NotionCapital
What we look for: Cultural View
Personality – of the businessExperience - of the engagementSmart & intellectual capacityDomain expertise in the spaceThird party validationThe bottom line - financial
Chris Tottman @NotionCapital
The Big Questions
Early - Winners are always winners so tell me about your track record of winning?
Early - Whats the gap btw what we need and where you're strong? (needs analysis)
Middle – Deeper analysis of the above
Final - How will you transform our business? (whats in it for us)
Final - How will you migrate into our business over 100 days?
Chris Tottman @NotionCapital
Top Tips Selling then Interviewing Exciting then formal (but always expressing
the entrepreneurial personality) Make it competitive Direct & Recruiters (an extension of your
Exec) Design the Org in detail & then hire explicit
to that (don't design jobs around people) They have to be world class in 3 or 4 areas
not good at a long list of areas Everyone can blackball any candidate with
good reason Loads of formal and soft references all the
way through Go for a pint / dinner
Chris Tottman @NotionCapital
Smart & a little mad?
Big Market & Big Pain?
Scalable Business?
Let’s [email protected]
www.notioncapital.com
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Andy McLoughlin, Co-founderFollow me @bandrew
Users in 100,000+
organizations
Content collaboration for government & enterprise
London, San Francisco, NYC, Washington DC
Founded in London in late 2006
170 staff across four offices in two countries
Raised $40M in venture capital across three rounds
Investors include Eden Ventures, Matrix Partners, Jafco
Ventures, DAG Capital, In-Q-Tel and Webex founder Subrah Iyar.
International expansion,culture and comms
(or how I learned to stop worrying and love the 8 hour time zone difference)
REALLYDo you
need to be there?
Everything I’ve learnt about *international expansion in about 20 minutes
(* to the US generally and SF in particular)
Gaping void silicon valley
Navigating the US
http://gapingvoid.com/2008/08/05/silicon-valley-map/
Google map – SF to San Jose
San Francisco(hipsters and winos)
Google map – SF to San Jose
Silicon Valley(khaki and Googlers)
It’s kind of like Reading
(but with sunshine and palm trees)
Borrowed from http://www.orkposters.com/sanfran.html
For Huddle, it was always going to be San Francisco
Location sorted. You’re on your way!
• Create US entity• Register to trade in
State of California• US banking• Visas• Hiring + benefits
Regardless of where you trade, incorporate in Delaware• Generous tax benefits, well-defined body of case law• Suck up the cost and get a lawyer to sort this• Valley lawyers often willing to defer costs until VC
financing and trade cost for equity
US banking for business
• They’re connected to everyone in the valley
• Regular networking events
• Venture debt and working capital facilities
• Set up US accounts from the UK
• Now also offer UK banking
www.svb.com/accelerator
US banking for you
• Opening a personal US bank account is easy but getting credit isn’t
• Every ATM charges a fee• The answer = HSBC Premier• Free, instant transfers between
international accounts, all ATM fees repaid, credit card based on UK credit
• Accounts can be opened from the UK
Company sorted! Let’s get to work!
• Create US entity• Register to trade in
State of California• US banking• Visas• Hiring + benefits
FACTIt’s very naughty to come to the US and
work without a visa
With the ESTA you are allowed to stay for up to 90 days, do business for your foreign company (partner meetings, client meetings, board meetings, conferences) and perhaps take a holiday.
But you absolutely cannot work for a US company. Oh no.
Many visas, many options
There are a ton of options (including temporary and student visas) but the most popular are:
• H1-B (Highly skilled migrant)• L1-A (Intercompany transfer)• O-1 (Alien of extraordinary ability)• E-2 (Investor visa)
Hands up who likes filling in forms?
Visa applications are paperwork-intensive process and one slight error will void your application so use an attorney!
Suhi Koizumi & Olivia Serene Lee
Minami Tamaki LLP
360 Post Street, 8th FloorSan Francisco, CA 94108www.MinamiTamaki.com
Premium processing L1-A
You must be outside the US to apply You must attend the local embassy in person Entering the US during the visa application is allowed but
frowned upon. Make sure you can prove the trip is temporary!
Company Submits Petition
Application[day 1]
Petition Approved[day 20]
Submit Visa Application
Online [day 21]
Embassy Interview[day 25]
Passport Returned [day 30]
My visa hell experience (2010)Submit application and begin ‘business trip’ to US [day 0]
Begin hassling attorneys [day 45]
Lose temper and cancel 1st application
[day 50]
Re-apply, paying for premium processing
[day 51]
Learn colleague’s application
approved. Lose shit. [day 52]
Application returned with Request for
Extra Information [day 66]
Submit Extra Information [day 75]
3 month visa expires, leave US quickly [day
89]
Application approved. [day 95]
Approved Petition +
Passport with L1-A +
Stamped I-94
=
Making your first US hires
• Create US entity• Register to trade in
State of California• US banking• Visas• Hiring + benefits
International hiring 101
Hiring in the US is broadly the same as hiring anywhere else.
Don’t hire people you might hate, make sure they can do the job, use your network, use LinkedIn, hire an in-house recruiter at scale, avoid agencies etc.
(but if you do need a recruiter)
Connery Consulting (conneryconsultingllc.com) have staffed for Salesforce.com, Zendesk and
many others.
Betts Recruiting (bettsrecruiting.com) specialise is sales, marketing and business development. They
throw fun parties.
Gross generalisation #1
Hiring in the US is relatively easy
True! Firing is also easy. Get at-will contracts from your lawyers. 3 month
probation period and let go early if not working.
Gross generalisation #2
Valley people are more start-up savvy
True! It’s all about the options pool. Bonuses less common. 15 days
vacation. More flexibility but people know their market value and expect
to be looked after.
Gross generalisation #3
British humour is always acceptable
False! Keep it out of interviews. No bad taste jokes. Don’t ask people their age or personal questions. If you think it might
be inappropriate, it probably is and you may get sued for it. Just don't.
Gross generalisation #4
A great package of extras is expected
True! The more you offer, the more attractive you will be. This means great healthcare, lots of snacks in
the office, lunch (and dinner) provided, Aeron chairs...
Actual start-up snack room
Primer: US healthcare• Healthcare with vision and dental is expected• This will cost around $500 per employee (extra for
spouses and children)• Even the best health insurance only covers 90% of
cost of an accident• Most popular plans in CA are Anthem Blue Cross,
Blue Shield, Cigna, Kaiser• We chose Anthem Blue Cross EmployeeElect (with
$20 copay)• Use an HR partner to coordinate (unless you’re a
masochist)• Trusted local partners include Advisor (advsor.com)
and TriNet (trinet.com)
The other stuff: US payroll, social security, IRS etc
Like company formation and healthcare, don’t even bother doing this yourself. It’s a massive, massive distraction.
Again, Advsor or TriNet are recommended.
It’s f*cking expensive!•$50k to get a team up and running (visas, flights, office, accommodation, payroll, taxes, incorporation)•5-10% of this cost to cheat
Dealing with distance
Transplanting culture
• If you can, start with a founder• Consider bringing a small number of
established team• Bring what’s best about your company• Be prepared to spend a lot of time with
your new team outside of the office• Try and make each new office better than
the last
Communicating with home
• You get up earlier (7am starts are normal)
• UK team work later• VOIP office phones• Google Voice for cheap calls
via your mobile• Weekly all-hands with video
conferencing
Thank you!Thank you!@bandrew | @huddle
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Innovative approaches to recruitment and the roles of the founders
Alicia Navarro & Joe Stepniewski – Skimlinks founders
What have we done right?
• Currently have 66 employees
• Out of our current employees:
– 100% of people that started with us in 2008 are still with us
– All but 1 person that started with us in 2009 are still with us
– All but 3 people that started with us in 2010 are still with us
– 100% of people that started with us in 2011 are still with us
Hiring in early days…
Costs matters more Culture fit matters more
General skills matter moreSense of ownership matters more
Look in unlikely places
Make it hard to apply
Try to shock during interviews to find out the truth
Look open-source & project involvement
Hire future entrepreneurs
Widen pool of potentials: become a visa sponsor
73
Personalised packages that show you listen & care
“Leithification”
Aim for a Rainbow Family
70% 30%
Ratio Men:Women
21 nationalities
Australia, Austria, Brazil, Canada, China, France, Greece, Hungary, Irish, Italy,
India, Japan, Pakistan, Poland, Portugal, Singapore, South Africa, Sweden,
Ukraine, United Kingdom, United States
CEO lunch
Be open-minded about matching people to roles
Blogger with no degree
Personal Assistant
Communications Manager
Marketing Director
CS grad with no experience
Data input intern
Business Development
Product management
Grad with no experience
Account Management
Business Development
Future CEO
CS grad with no experience
Categorisation intern
Operations Manager
QA Manager
Interns and grads are the lifeblood of a startup
15% of our current employees joined us as interns
Don’t hire too many or too quickly…
… else expect churn
Create traditions
Fleetwood Fridays Christmas parties
Welcome questions #skimlove
Understand and foster your culture
Make start-up education part of overall package
Celebrate wins, especially technology successes
Hire internal HR at about 20 people
100% of employees interviewed by a founder
Founders will spend 30% on hiring & retention
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
MVF helps Companies Acquire New Customers Across the World.
278%
A B C 0-5 6-50
50+
How Many Staff In Your Company?
The Secrets of Creating A Great Company Culture
1. The End Goal2. Six Human Needs
3. Hiring Secrets4. Scaling Culture Secrets
5. Acquisition Culture Secrets
The End Goal
a. Great Lifestyle Businessb. Exit from Trade or Float
The End Goal
Business Model Scale Culture
Business Model:The Importance Of Gross Profit
Define the Culture You Need To Achieve Your End Goal
MVF Culture
Energy & Ability to energise othersPassion
Gets the job doneSmart
Energetic and Smart Marketing Culture
MVF Culture
Energetic and Smart Marketing Culture
Energetic, Smart, Data Driven Sales & Marketing Culture
The Secrets of Creating A Great Company Culture
1. The End Goal
2. Six Human Needs3. Hiring Secrets
4. Scaling Culture Secrets5. Acquisition Culture Secrets
We Are Apes98.8%
Six Human Needs
1. Connection & Love2. Growth
3. Significance4. Contribution
5. Variety6. Certainty & Comfort
VS
Huge Salary
Build A Family
Real World Gamification• Employee of the Month• Awards Ceremonies• Big Gun Prizes• Flags
Fact For Granny• Awards • Press• Milestones
Celebrate Events
56p
£1
£14
Encourage the Extra Curricular
Six Human Needs
1. Connection & Love2. Growth
3. Significance4. Contribution
5. Variety6. Certainty & Comfort
Build A FamilyReal World Gamification
Fact For GrannyCelebrate Events
Encourage The Extra Curricular
Happier StaffLower Salaries
The Secrets of Creating A Great Company Culture
1. The End Goal2. Six Human Needs
3. Hiring Secrets4. Scaling Culture Secrets
5. Acquisition Culture Secrets
A
2.2 ClassGeographyCambridge University
1st ClassGeographyBolton University
B
Energy
The Extra Mile
Sporting, Organisational, Intellectual• Organised a Rock Concert• Fulbright Scholar• Captain of Local Football Team• Completed an Iron Man• Organises Coding Dojos• Published in Scientific Journal As An Undergraduate• Won Commonwealth Silver Medal
Hire Slow, Fire Fast
• Never, Ever, Ever, Ever Rush A Full Time Hire • Google’s Six Interviews• Felix Dennis’ 30% Certainty Rule for External Hires vs Internal
Hiring Grads
• Hire Aptitude, Over Experience• Hire Energy, Brains and Passion• Look For The Extra Mile• Ensure Interest in Digital Media (if Internet Start-Up)
Hiring Techies
• Moving to London/UK for first time• Give them their London/UK Community• Gumtree• Github & Stackoverflow• 1+ years experience @ quality company
Non-Execs
• Entrepreneurs Vs Financiers• Private Equity and Venture Capital Networking
Cheap Job Posting
95%
Right People On The Bus, Right People Off The Bus
Promote
KeepFire
Develop
The Secrets of Creating A Great Company Culture
1. The End Goal2. Six Human Needs
3. Hiring Secrets
4. Scaling Culture Secrets5. Acquisition Culture Secrets
Hunt In Packs
The Big Jump
<50 100+
Hurdling The Big Jump
100+Making the Company Network Tighter• Socials & Sports• CEO & Management Lunches• Company Buffets• Yammer vs Google+• Employee Survey
• OMMA – Once Monthly Management Assemblies• All Directors & Managers Run Training Programs• Cross Company Mentoring• Performance Management/Objective Setting Systems• Structured Company Levels
6 Levels
6.Executive
5.Senior Executive
4.Manager
3.Senior Manager
2.Head
1.Director
Management OR Specialist
Employee Survey
Hurdling The Big Jump: From Pivot to Process
CommercialPivoters
Process Builders
Timeline
Pivot1
Pivot2 £1m £10
m
Main Business
New Ventures
The CEO’s Evolution
Timeline
Pivot1
Pivot2
£1m £10m
Product
Sales
HR
Comms
What They Do
Recruiter C-level Headhunter
Product Manager Product Strategist
Salesman Public Face
1on1s Management/Board Meets
Everything Delegate
The Secrets of Creating A Great Company Culture
1. The End Goal2. Six Human Needs
3. Hiring Secrets4. Scaling Culture Secrets
5. Acquisition Culture Secrets
Great White Sharks
Market Leaders vs Tuck Ins
£1,400,000,000
*Source - UK M&A Market – Experian CorpFinance
17
*Source - UK M&A Market – Experian CorpFinance
The Secrets of Creating A Great Company Culture
1. The End Goal2. Six Human Needs
3. Hiring Secrets4. Scaling Culture Secrets
5. Acquisition Culture Secrets
[email protected] @titussharpe
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Make the product do the work
Jasper Westaway
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 1031091151211271331391451511571631691751811871931992052112172230
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000User growth (weekly, 5%)
Year 2 Year 3 Year 4
1,204 users
192,460users
100users
Year 1
15,223users
2,433,240users
Scaling = Year 4
Stressed & tired
Under-resourced
Distracted by new projects
Bored by existing project
Let the product do the scaling
Keep the product simple
Rethink your product as a virus
k = i * c
Focus on the product machine…
…not the sales team
• Delay building sales and marketing teams until unavoidable
• Let the product be the sales engine
Let your culture be the product
When product does your work, users do your work
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
www.schuch-associates.com
How founders can add the most value to their businesses: Focus on core, Delegate choreLen Schuch
September 2013
www.schuch-associates.com
Len SchuchSchuch Associates – Director
Ubiquisys - Co-FounderOrange
Vodafone
BT
Other Stuff
167
www.schuch-associates.com
168
Why we do it!
www.schuch-associates.com
Ubiquisys Profile
• Three Founders: Len Schuch, Will Franks, Pete Keevill
• Investors: Accel Partners, Advent Venture Partners, Atlas Venture, 5 Continents Consulting Group, Pacific venture partners, Sercomm Corp, UMC Capital Corp, Yasuda Enterprise Dev Co. T-Mobile Ventures (Past Investors include Google and NEC)
• Consistently Rated No. 1 in Industry Rankings
• Staff: 120
• Customers across Europe, Asia, Middle East, Americas
• Key Partners: NEC, NSN, Cisco, Intel, Broadcom, 169
• Leader in Intelligent multimode LTE / 3G / WiFi small cells deployed by operators around the world.
• Pioneers on a $billion industry
• Founded in 2004
www.schuch-associates.com
Turning an idea into reality
170
The Idea The Product
www.schuch-associates.com
How the technology worked
171Copyright: Ubiquisys
www.schuch-associates.com
The changing environment
172
12 Months
2 Months
9 Months6 Years +
From dining room….. to glass fronted office
www.schuch-associates.com
A Few Pre-Funding Activities for the Founders
173
Business Plan
Customer Traction
Company Accounts
Monitor Cash Flow
Fund Raising
Develop Prototype
Develop Eco-system
Find Software DevelopersRegister IP
Find Technical PartnersRaising Awareness
Building Advisory Board
www.schuch-associates.com
When you need help…….get it!
174
Its very easy to be overwhelmed
www.schuch-associates.com
Where to find your resources
Previous business colleagues
VC / Advisory Board contacts
Find / hire a trusted HR consultant
175
www.schuch-associates.com
Scaling the Company
176
www.schuch-associates.com
177
Evolution of the company structure
Growth StageScaling the business
Establishment StageDefining of processes & roles
Nascent Stage“All hands on deck”
Com
pany
Siz
e
Time
• Established Departments• Procedures / systems in
place• Design for Efficiency• Transformation of culture
www.schuch-associates.com
178
The Founders
www.schuch-associates.com
179
Skills Audit
What are my skills?
Can I take the company toits full potential?
Is this a $10m or a $100m+ company?
Can I carry the investors & board?
www.schuch-associates.com
A founding CEO or a hired CEO
“Rich or King”• Study by Noam Wasserman of Harvard Business School
• 460 start-ups since 2000
• Founders predominantly maximised value of their equity stakes by giving up CEO position and Board control
• Another Study of 212 start-ups
• Less than half of founders were still CEO after 3 years
• Less than a quarter reached IPO
180
www.schuch-associates.com
When to make the transition?
• Skill audit must be made from the start
• Bring in early to shape the business:• Product
• Organisation
• Influence on Culture
• Still be able to Bond with the Founders
• Prior experience to scale the company
Source: Essay on Entrepreneurship by Reid Hoffman: 2013
www.schuch-associates.com
Our decision to hire externally
182
Scale Visible that potential industry size would be in $100m’s (is now a $billon industry)
Investment Successive funding rounds required - 5 rounds in total
Partners Global partners and customers – contacts at CEO level
Engineering Breakthrough engineering required
Strategic Strategic thinker for a new paradigm
www.schuch-associates.com
Finding Roles for the Founders
183
Len
Will
Pete
CEO
Seed & A’ Round After A’ Round
CEO VP Business Development
Chris CEO
Chief Technology Officer
VP EngineeringVP Engineering
Chief Technology Officer
www.schuch-associates.com
What brought us Success
• A strong bond between the founders - similar goals and vision each bringing a different but compatible skill to the venture
• Being open and honest – creating a culture of respect
• Succeeding at what we did know, gaining help for the things we didn’t.
• Hiring a heavyweight and visionary CEO at the right time – not too early – not too late
• Bringing in appropriate advisors when required
• Delivering the best in breed technology
• Continuous Innovation – keeping us ranked at No1.
• 101 other things
184
www.schuch-associates.com
Thank You
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Remaining agile and repricing risk as you scale
Jonathan QuinCEO, World First
@world_first@jonathanquin
Agility
i. Why scale?ii. What is agility?
i. Adapt rapidlyii. Maintain/Improve efficiency
iii. Why by agile?iv. Transform and reinvent
Maintaining Agilityi. The stages of growthii. Adapting starts at the topiii. Delegate, delegate, delegateiv. The 5 tiers of potential managersv. Employees must understand growth
plansvi. 26%vii.The weekly meetingviii.The PA
Organisational Intelligence
i. HR managerii. Beermat Entrepreneur
“Product/Operations, Sales, Marketing, IT, Finance, HR”
iii. Hire for now, 1-year and 3-years’ ahead
iv. 6-monthly management assessment
Organisational Progress
i. Need process people and project people
ii. Jung, Myers-Briggs, Keirsey, Belbiniii. Need balanced teams iv. Role definitions = less fluidv. Understand your strengths and
weaknessesvi. Hire to complement you
Designing for agility
i. Periodic redesign processesii. User Centred Designiii. Bottom-up and Top-downiv. Team “champion”v. Business changevi. Technologyvii.STP/APIs
Being Objectivei. See the wood from the treesii. Can’t grow if fighting firesiii. Understand how the business
can evolveiv. Your role >1 monthv. Total disciplinevi. Think!
Process [vs bureaucracy]
i. Locking the stationery cupboard ii. Evolution vs planningiii. Management Information and
analysisiv. All about balance
Risk (business)i. “The biggest risk is not taking
any risk... In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” (Various - recently borrowed by Mark Zuckerberg)
Risk (business)i. Understand the risk, then de-risk itii. Can’t stay flatiii. Calculate your risk thresholdiv. Get buy-inv. Must be material – don’t be
distracted by small risksvi. Don’t mix up systemic risk and
growth risk
Risk (business)i. The challenge for you isn’t
coming up with the great idea, it’s having the risk appetite to follow it through.
ii. Failure: UK vs USiii. Calculating riskiv. 70%
v. Bailing out
Risk (business)
SME (<£5m) Medium (£25m+) Large Corporate (250m+)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Risk of Failure
Risk Appetite
Risk (business)i. Coca Colaii. Appleiii. Yahooiv. TomTomv. World First
Risk (personal risk)i. Risk ≠ Recklessii. Nervous… or excited?iii. Gut instinctiv. Listening to others vs taking
decisionsv. Understand your motivationvi. Can you live with the worst case
outcome?
Summaryi. Be agile or dieii. Risk Reward
iii. Take a risk but de-risk it
iv. Regret
v. Questions
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle
Scaling Startups September 12th 2013. London
#ScalingStartups @TalentPuzzle