10. Physical Resources
• company facilities
– office space, company location
• product/services
– supply of silicon wafers or iron ore, or
thousands of feet of warehouse space?
• Many physical goods are capital intensive
11. Financial Resources
• Friends and Family
• Crowdfunding
• Angels
• Venture Capital
• Corporate partners
• Others: SBA or SBIR grants
• Lease-lines
• Factoring
• Vendor-financing
13. Mentors, Teachers, Coaches
• Mentors, teachers, coaches advance your
personal career
– If you want to learn a specific subject find a teacher
– If you want to hone specific skills or reach an exact
goal hire a coach
– If you want to get smarter and better over your career
find someone who cares about you enough to be a
mentor
14. Advisors
• Advisors are people you need to help advance
your company’s success
– Founders fail when they believe their visions are facts
– Listening to experienced advice can help you sort
through whether your vision is a hallucination
– Getting an advisory board (by expanding your circle
of accumulated wisdom past their investors) is so
important that it’s an explicit step in the Customer
Development process
18. Executive Traits by Stage
Entrepreneurial-
Driven Learning and
Discovery
Mission-Oriented
Management
Process-Managed
Execution and Growth
Personal
Contribution
Superstar Leader Manager of plans,
goals, proc ess, and
personnel
Time Commitment 24/ 7 As needed Long term 9 to 5
Planning Opportunistic and
agile
Mission- and goal-
driven
Proc ess-, and goal-
driven
Process Hates and eliminates As needed, driven
by mission
Implements and uses
Management Style Autoc ratic , star
system
Distributed to
departments
May be bureauc ratic
Span of Control Hands-on Mission-driven,
sync hronized
Distributed down the
organization
Focus High and passionate
vision
Mission Exec ution
Uncertainty/ Chaos Brings order out of
c haos
Foc uses on fast
response
Foc uses on
repeatability
23. Trademark protects branding & marks
• Trademark gives you the right to prevent others from
using “confusingly similar” marks and logos
• Trademark protection lasts as long as you use the mark
• The more you use the mark, the stronger your protection
• Trademark registration is optional, but has significant
advantages if approved
• Country by country
24. Copyright protects creative
works of authorship
• Copyright gives right to prevent others from copying,
distributing or making derivatives of your work
– Protects “expressions” of ideas but does not protect the
underlying ideas
• (Way) more than just technology:
– songs, books, movies, photos, etc.
• Copyright protection lasts practically forever
• Copyright does not prevent independent development
• Registration is optional, but is required to sue for
infringement
25. Trade Secrets
• Information that is kept secret and has economic
value to the business
• Coke recipe, customer lists, product road maps.
• No registration required
• Can last for as long as you take reasonable
steps to keep confidential
26. Contract
• Protection agreed to by contract
• No registration process
• You have whatever protection is defined in the contract
(e.g., NDA gives you certain rights to protection of your
confidential information)
• The protection lasts for the time period defined in the
contract
27. Patents
• A government granted monopoly
– prevents others from making, using or selling your invention
– Even if the other’s infringement was innocent or accidental
• Invention must be non-obvious
• Protection lasts typically for 15-20 years
• Application and examination is required
– Typical cost for application and exam is $10-30k
– Typical time for application and exam is 1-4 years
• Must file in U.S. within one year of sale, offer for sale,
public disclosure or public use
• Provisional application alternative
28. What Can be Patented?
• Just about anything . . .
– Circuits, hardware
– Software, applied algorithms
– Formulas, designs
– User interfaces
– Applications, systems
– Business processes (sometimes)
• But not these . . .
– Scientific principles
– Pure mathematical algorithms
• And, pending Supreme Court Case raises concerns regarding
patentability of “methods” inventions
30. Search vs. Execution Metrics
• Existing companies execute plans
• Startups search for them
• Income Statement, Balance Sheet, etc are
execution documents
• You first need to derive the metrics that matter
31. Metrics That Matter
• Value proposition: product cost, mkt size/share, competition?
• Customer Relationships: customer acquisition costs, conversion
rates, lifetime value?
• Market Type: revenue curves
• Operating Costs: basic operating costs of the business?
• Channel: Channel margin, promotion, shelf-space charges?
• Revenue Streams: average selling price, # of customers/year,
achievable revenue?
• Burn Rate: per month? When will the company run out of cash?
33. We’ve hit our first milestones
Jun 2011 Dec 2011 Jun 2012
Mar 2013
First unit
Seed Round
Confidential
Technology Track
Customer Discovery Track
Finance Track
Post-processed
Image recognition
Prototype
First unit
Series A
Customer trial and
customer order
Real-time
image
recognition
Select 1st
target crop
Friends and
family round
Applied
for grants
Testing agreement
with top producer
$125 K
F&F
$800 K
Seed
$3-5 M
Series
A
35. $10M
$15M
2012
Series A
$3.5 MM
Cash
Reserve
Clinical
Milestones
$5M
Initialize
Design
Milestones
Regulatory/
IP
Milestones
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B
$9 MM
System
2017
Q1 Q2
Q1 Q2 Q3 Q4
2018
Q3
Launch
Series C
$30.5 MM
$30M
$20M
Regulatory / Clinical
Series D
$35 MM
M&A / IPO
$50 MM
$40M
34 12/4/2009
Proof of
Concept
Pilot
Studies
IC and
Processin
g Patents
Marketable
Product
Provisional
Patent
Beta-
Version
Testing
Application
and System
Patents
IRB /
IDE
Clinical
Results
Second Release
Initial
Product
Launch
Specific Codes
(Cat. I CPT / APC)
Non-Specific Codes
1st
Release
Test
2nd Release
Test
Publication
Post-Market Clinical
Studies
Beta Prototype
US Interim Trials
FDA – Class II – 510 (k)
with Clinical Trials
Publication
Financial / Operations Timeline
Cat III
CPT
US Pivotal Clinical
Trials
Laboratory
Prototype
Technology
Licensing
MammOptics
MammOptics
Financial
timeline
38. $10M
$15M
2012
Series A
$3.5 MM
Cash
Reserve
Clinical
Milestones
$5M
Design
Milestones
Regulatory/
IP
Milestones
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B
$9 MM
System
2017
Q1 Q2
Q1 Q2 Q3 Q4
2018
Q3
$30M
$20M
$40M
37 12/4/2009
IC and
Processin
g Patents
Marketable
Product
Beta-
Version
Testing
Application
and System
Patents
IRB /
IDE
Beta Prototype
Financial / Operations Timeline
Pilot
Studies
Regulatory / Clinical
Laboratory
Prototype
MammOptics
MammOptics
39. $10M
$15M
2012
Cash
Reserve
Clinical
Milestones
$5M
Design
Milestones
Regulatory/
IP
Milestones
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B
$9 MM
System
2017
Q1 Q2
Q1 Q2 Q3 Q4
2018
Q3
Series C
$30.5 MM
$30M
$20M
Regulatory / Clinical
$40M
38
IC and
Processin
g Patents
Application
and System
Patents
IRB /
IDE
Cat III
CPT
Second Release
1st
Release
Test
US Interim Trials US Pivotal Clinical
Trials
Publication
Financial / Operations Timeline
Pilot
Studies
MammOptics
MammOptics
40. $10M
$15M
2012
Cash
Reserve
Clinical
Milestones
$5M
Design
Milestones
Regulatory/
IP
Milestones
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017
Q1 Q2
Q1 Q2 Q3 Q4
2018
Q3
Launch
Series C
$30.5 MM
$30M
$20M
Regulatory / Clinical
Series D
$35 MM
$40M
39 12/4/2009
Clinical
Results
Second Release
Initial
Product
Launch
Non-Specific Codes
2nd Release
Test
Publication
US Interim Trials
FDA – Class II – 510 (k)
with Clinical Trials
Publication
Financial / Operations Timeline
US Pivotal Clinical
Trials
MammOptics
MammOptics
41. $10M
$15M
2012
Cash
Reserve
Clinical
Milestones
$5M
Design
Milestones
Regulatory/
IP
Milestones
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017
Q1 Q2
Q1 Q2 Q3 Q4
2018
Q3
Launch
$30M
$20M
Regulatory / Clinical
Series D
$35 MM
M&A / IPO
$50 MM
$40M
12/4/2009
Clinical
Results
Initial
Product
Launch
Specific Codes
(Cat. I CPT / APC)
Non-Specific Codes
Publication
Post-Market Clinical
Studies
FDA – Class II – 510 (k)
with Clinical Trials
Financial / Operations Timeline
MammOptics
MammOptics
42. $10M
$15M
2012
Series A
$3.5 MM
Cash
Reserve
Clinical
Milestones
$5M
Initialize
Design
Milestones
Regulatory/
IP
Milestones
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B
$9 MM
System
2017
Q1 Q2
Q1 Q2 Q3 Q4
2018
Q3
Launch
Series C
$30.5 MM
$30M
$20M
Regulatory / Clinical
Series D
$35 MM
M&A / IPO
$50 MM
$40M
41 12/4/2009
Proof of
Concept
Pilot
Studies
IC and
Processin
g Patents
Marketable
Product
Provisional
Patent
Beta-
Version
Testing
Application
and System
Patents
IRB /
IDE
Clinical
Results
Second Release
Initial
Product
Launch
Specific Codes
(Cat. I CPT / APC)
Non-Specific Codes
1st
Release
Test
2nd Release
Test
Publication
Post-Market Clinical
Studies
Beta Prototype
US Interim Trials
FDA – Class II – 510 (k)
with Clinical Trials
Publication
Financial / Operations Timeline
Cat III
CPT
US Pivotal Clinical
Trials
Laboratory
Prototype
Technology
Licensing
MammOptics
MammOptics