Key note on #BackToStartupBasics at Carnegie Mellon University Qatar. #BackToSTARTUPBASICS is an Intro to joining the Lean Startups movement ! I will "try" to talk about secrets of successfully launching and scaling your startup, the Startup and Investment Ecosystem, Business Model Innovation and Customer Development, Value Proposition Design, and Investment readiness for Fund-raising. I cant promise to turn you into billion dollar startup founder ! But What I can promise you is that what will learn during the speech is fluff-free advice that really "works" and not any where in general but specifically in this region and its not what you typically read in books !

1. 1
Back to Startup Basics
& Secrets of launching
Successful Ventures
Rami Al-Karmi
alkarmi
ramialkarmi
#BacktoStartupBasics

2. 2
GEMINIInside

3. 3
Feel Free to reach out@alkarmi
Mentor & Limited Partner
Executive Chairman
Octonius
Executive Vice Chairman

4. ootprintF
start
the program
VENTURE LAB
FastForward

6. Attending @QBICqa
#BackToStartupBasics Session
w/ @alkarmi @CarnegieMelonQ

7. Entrepreneur ?

10. 10
Entrepreneurship Ecosystem
Entrepreneurs

11. 11
Entrepreneurship Ecosystem
Entrepreneurs
Venture Capital
Investors

12. 12
Entrepreneurship Ecosystem
Entrepreneurs
Venture Capital
Investors
Corporations
Potential acquirers
Strategic investors

13. 13
Entrepreneurship Ecosystem
Entrepreneurs
Venture Capital
Investors
Corporations
Potential acquirers
Strategic investors
Universities
Professions
Management
Government

14. 14
Entrepreneurship Ecosystem
Entrepreneurs
Venture Capital
Investors
Corporations
Potential acquirers
Strategic investors
Universities
Professions
Management
Government
Public Stock
Market
Pools of
Private
Capital

34. Runway ?

35. 35
Lifecycle of an Entrepreneur
Idea Formation Growth Exit

36. 36

37. 37
Business
Schools teach
OUTDATED
Startup
tools

38. 38
“Valley of Death”
Research Grants Development
Grants
(eg SBIR)
Friends, Family, &
Founders
($5-$50k)
Angel
Investors
($50-$500k)
Funding
Early Stage
Venture Capital
($500k-$2M+)
Venture Capital
($2M-$50M)
Private Equity,
Project Financing
($2M-$50M)
IPO, Merger,
or Acquisition
($2M-$50M)
Stage of
Venture
Development
Idea
Basic Research
Applied
Research
Proof of
Concept
Target
Market
Business
Plan
Engineering
Prototypes
Supplier
Contracts
Product
Introduction
Revenue
Growth
Production
Prototypes
Distribution
Contracts
Working
Prototypes
Founding
Team
Net
Cash
Flow
➡ > 95% of startups fail
➡ VCs fund 1% of submitted biz plans

39. 39
It’s all about execution of a predefined
plan
The Leading Cause of Startup Death
Product
Dev.
2
Alpha/Bet
a Test
3
Launch
Product
4
Where
Customer?
Pitch
Investor
1
Customer
Dev.
5
Inside the building

40. 40
No Business Plan Survives
First Contact With Customers
Startups/New Ventures Are Not Smaller
Versions of Existing Companies
Startups/New Ventures
need their own tools

41. 41
From Yesterday's Outdated Tools
To ...
Inside the building

42. Remove the fluff

43. 43
Agile
Dev.
Customer
Dev.
Biz Model
Canvas
... Today’s Tools LeanStartup
Outside the building

44. 44
Business Model Canvas

45. Customer Development
The Search For the Business Model
Company
Building
Customer
Discovery
Customer
Validation
Customer
Creation
Pivot

46. Out of the building !
GET

48. 48
Top 20 Reasons

49. 49
#1 – Building a solution
looking for a problem,
i.e., not targeting a “market need”
#BackToStartupBasics42%

50. 50
#2 – Ran out of
cash
29% #BackToStartupBasics

51. 51
#3 – Not the right
team
23% #BackToStartupBasics

52. 52
#4 – Get
outcompeted
19% #BackToStartupBasics

53. 53
#5 – Pricing/Cost
Issues
18% #BackToStartupBasics

54. 54
#6 – A “User Un-
Friendly” Product
17% #BackToStartupBasics

55. 55
#7 – I got this
product. Now I just
need a business
model.
17% #BackToStartupBasics

56. 56
#8 – Poor Marketing
14% #BackToStartupBasics

57. 57
#9 – Being inflexible
and not actively
seeking or using
customer feedback
14% #BackToStartupBasics

58. 58
#10 – Release
product at the wrong
time
13% #BackToStartupBasics

59. 59
#11 – Lose Focus
13% #BackToStartupBasics

60. 60
#12 – Disharmony
with Investors/Co-
founders
13% #BackToStartupBasics

61. 61
#13 Pivot Gone Bad
10% #BackToStartupBasics

62. 62
#14 – Lack Passion
and Domain
Expertise
9% #BackToStartupBasics

63. 63
#15 – Location,
Location, Location
9% #BackToStartupBasics

64. 64
#16 – No Financing
or Interested
Investors
8% #BackToStartupBasics

65. 65
#17 – Legal
Challenges
8% #BackToStartupBasics

66. 66
#18 – Do not use
your connections or
network
8% #BackToStartupBasics

67. 67
#19 – Burn Out
8% #BackToStartupBasics

68. 68
#20 – Failure to pivot
when necessary
7% #BackToStartupBasics

69. 69
#StartupBasics

71. What’s the VC’s Motivation?

73. What’s Under the Hood?

78. Money Going In: Capital Contributions
G
P
GP
GP
GP
GP
GP
GP
GPLP LPLP
LP
1% of
total
99% of
total
LP
LP LP

79. Money Coming Out: Profit Sharing
G
P
GP
GP
GP
GP
GP
GP
GP
20% of
total
80% of
total
LP
LP
LP
LP LP
LP
LP

80. Got Crunched Yet?
Source: Bullpen Capital
VENTURE CAPTIAL SERIES A CRUNCH

81. Startup Investor Ecosystem
Angels &
Incubators
($0-10M)
“Micro-VC” Funds
($10-100M)
“Big” VC Funds
($100-500M)
“Mega” VC Funds
(>$500M)
TrueFirst Round
A16ZAtomico
Y-Combinator
TechStars
SoftTech (Clavier)
Felicis (Senkut)
SV Angel (Conway)
SequoiaGreylock
Union Square
Floodgate (Maples)
Foundry
Incubation
Seed
Series A
Series B
Series C+
Bootstrap, KickStarter,
Crowdfunding

82. Staying in Business = Raising More Funds
Year1
Year3-4
Each Fund Life = 10 Years
3-4 Yrs = Seed
NewCos
6-7 Yrs = Harvest
& Do Followons
Must raise new funds to keep
investing in NewCos; once new
fund is raised, NewCo funding
will come from it
Fund III
($150M)
Fund II ($125M)
Fund I ($100M)
After 6-7 years in business, VC
will have 3+ concurrent, active
funds at any one time; only
one, however, will be funding
NewCos
Year6-7

83. 83

84. 84

85. 85

86. 86

87. 87

88. 88

90. 9
0
Back to Startup Basics
& Secrets of launching
Successful Ventures
Rami Al-Karmi
alkarmi
ramialkarmi
#BacktoStartupBasics