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Why Startups should stop focusing only on growth?
You have 1% of chance to make 10 B$ and 100% of chance to make 10 M$.
Which one you choose ?
Me
Serial – EntrepreneurRocket Internet
Angel LabsEzako.comSwimmer
Chess player
50% of new companies will fail in the first 5 years!
(U.S. Bureau of Labor Statistics)
75% venture-backed firms fail in the first 5 years!
(Harvard University study done by Shikhar Ghosh)
95% venture-backed firms fail to ever return initial investments!
(Shikhar Ghosh)
It’s all about making your investors happy.
Ultra fast growth can be dangerous
Growth = traction = market validation
Quirky
Launched in 2009Invention platform
Raised $185MThe startup ran out of money and filed
for bankruptcy
Steve Jobs
Apple board ousted Steve Jobs in 1985 from the company he had created
VC funding is one path.
300 US startups get access to VC money per year.
736 startup acquisitions in 2015 in the US.
Loosing love money hurts more than VC money.
Get smart, be inventive, automate!
EZAKO
2 years oldClients in 5 countries10 people company
Paid dividends last year
PlentyofFish - Markus Frind
90 million registered users 3.6 million active daily users
100% ownershipSold for to Match for $575 million in
cash
MailChimp – Ben Chestnut
No VC12 million customers
$400M revenue in 2016550 employees
Github
Bootstrapped from 2007 to 2012In May 2011, more commits than
SourceForge and Google CodeFinally, raised $100M in 2012 from
Andreessen Horowitz
At the end, there is no magic
Do people want what you’re selling?Will they pay enough?