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What Startup Will You Build?
How to Identify Market White Space
http://www.flickr.com/photos/marieswartz/4
228616284/sizes/z/in/photostream/
David Teten
HOF.capital // @HOFcapital
teten.com // @dteten
© 2018 David Teten. More at teten.com
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 2
Don’t Take Notes!
Download detailed slides
and see the video at:
teten.com/mr
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 3
David Teten
 Managing Partner, HOF Capital
 Previously Partner for six years, ff Venture Capital, one of the top four
consistently best-performing seed- and early-stage VC firms in the U.S.
 Previously serial entrepreneur and Bear Stearns technology investment
banker
 Advised clients such as Goldman Sachs Special Situations Group,
Icahn Enterprises, LLR Partners ($1.4b fund), Birch Hill Equity Partners
(C$2B fund), and other institutional investors
 Harvard MBA, Yale BA
 Teten.com / @dteten / info@teten.com
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 4
 American Society of Mechanical Engineers
 Founder Institute New York (three times)
 Harvard Club of New York Tech & Entrepreneurship Group
 Harvard Graduate School of Arts & Sciences Business Club / Harvard
Graduate School Council
 Limmud NY / Limmud FSU
 National University of Singapore Techno Venture Forum (Entrepeneurship
Centre)
 New York Business Expo
 OCE Discovery (Canadian innovation conference)
 Princeton University Keller Center
 TechWeek NY (twice)
 TorchLight US-China Conference
 Thought Leaders in Business series (Yale Club of New York)
 Womensphere (four times)
Past Audiences for This Presentation
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 5
HOF Capital: Uniquely Positioned to Outperform
 Primarily invest at the Seed and Series A stages in North America, Western
Europe, and Israel
 Our 14 initial Limited Partners consist of leading multinational
corporations & family offices which view HOF as the best way to work
with the US innovation economy, including: Orascom Group, Godrej
Group, Dallah Albaraka, Globalive, and Travco Group
 We provide our portfolio companies with active sales, capital-raising,
and business development assistance, leveraging our relationships with
enterprise leaders & governments worldwide
 Powerful ecosystem relationships: co-invested with many leading VC
funds in the same round with the same terms, including NEA, GV (Google
Ventures), Bessemer Venture Partners, First Round Capital, and 8VC
 International platform: 2 primary offices, team fluent in 8 languages
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 6
New York
(HQ)
Mumbai
San Francisco
Cairo
Taipei
London
Brazil
Dubai
Our investors are global; we invest in
North America + Western Europe
Dublin
Sydney
PRIMARY OFFICE
AFFILIATE REPRESENTATIVE
Through Venture Partners & Venture Associates
PORTFOLIO COMPANY HQ
Mountain View
Los Angeles
Santa Monica
Beverly Hills
Seattle
Austin
Toronto
Berlin
Sunnyvale
LIMITED PARTNERS
Australia
Bahrain
UAE
Egypt
UK
FranceUSA
Canada
HK
India
KSA
Kuwait
Tanzania
Thailand
Lithuania
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 7
HOF is backed by leadership of
complementary global conglomerates
Real Estate &
Hospitality
Telecom &
Internet
Media
Infrastructure
Financial Services
Egypt's largest tourism
conglomerate with $600m+ in
revenue; 1.3m tourist
customers annually
Multifamily office for founders
of WIND Mobile ($1.6bn exit)
and Globalive
Communications ($120m
revenue)
Indian conglomerate with
current annual revenues of
$4.1bn+
Global $18bn conglomerate
employing over 60,000
people in over 20 countries
UK / EMEA CANADA INDIA EGYPT
In addition, we are supported by limited partners from 14 different countries, including
Australia, France, Thailand, UK, Lithuania, Tanzania, and USA
Over 15,000 employees in
8 countries across 40+
companies, and
affiliations with 200+
international brands and
companiesKUWAIT
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 8
Current active portfolio
* Not included on the following Portfolio History slides as we are not on the cap table
Note: Does not include Uber as it is not representative of our usual strategy
LiDAR sensors and smart
sensing solutions (SPV)*
Mobile finance platform for
emerging markets
Call center AI for
automating call
campaigns
AI-enabled and
always-on personal
retail concierge
Global content-driven
music e-commerce and
online education platform
Building the brain of self-
driving vehicles (SPV)
Vertically integrated
design platform for custom
furniture and brand
promotion
Autonomous robot-
powered local delivery
services platform
Mobile-first intelligent
rewards platform for
millennials
End-to-end digital
payments infrastructure
for Africa
On-demand content
marketplace powered by
freelancers
Smart IoT travel platform
combining the world's best
materials, design, and
technology
Cross-border bill
payments API
revolutionizing
remittances
First low-cost, intuitive,
and scalable portfolio
hedging SaaS platform for
investors
Global e-commerce
platform connecting
designers, producers, and
consumers
On-demand mobile
education platform
utilizing an intelligent chat
interface
Audience management
platform bypassing social
platforms
Mobile and data-driven
event ticketing and
management platform
Hospitality AI for automated
housekeeping management
Communication
enhancement platform
transforming the nature of
mobile conversations
Web application firewall
using neural networks for
banks
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 9
World-Class
Leadership Team
Starship Technologies
Ahti Heinla and Janus Friis also co-founded Skype
 Visionary founders
 Mission driven
 Untrustworthy, uninspiring
 Lack of focus and obsession
Platform Potential
Flutterwave
Infrastructure used by banks for seamless digital integration
 Creates platform for other
businesses
 Changes the operations of an
industry
 Offers features, not platforms
 Point solution with limited
growth
Realistic Path to
Profitability
Tixr
Intuitive pricing and fees that lead to company profits
 Realistic economics
 Long term sustainability
 Unsupported revenue
assumptions
 Consistently unprofitable
Solving a
Challenging
High-Value
Problem
VOIQ
Opportunity validated by HubSpot’s former VP of Sales
 Validated pain point
 Paying customers
 Low frequency and AOV
 Low demand or demand
creation
Big Improvement
over Incumbent
Solution
OPTii Solutions
Hospitality software extremely effective at reducing costs
 Better, faster, cheaper
 Clients leave incumbent firms
 Insignificant improvement over
legacy product
Significant
Competitive Edge
Social Native
Team includes the AdSense and Buddy Media co-founders
 10x better product/team
 Strong network effects
 No proprietary resources
 Easy to imitate and replicate
Existing Market
Validation
Yup
Confirmed edge in the digital tutoring industry
 Customer references
 Competitor benchmarking
 High customer churn
 Stagnant POCs
Clear
Commercialization
Strategy
Raden  Path to monetization
 Scalable unit economics
 Weak sales funnel
 Pre-product
Large Revenue
Potential
Superphone
Audience management platform bypassing social platforms
 New market creation
 Revolutionary product
 Targeting shrinking market
 Clone business or copycat
product
Reasonable
Valuation
Showroom
 Value results, not promises
 Potentially return the fund
 Excessive structuring
 No co-investors
Investment screening criteria
We have an internal scoring method to quickly screen opportunities & ensure they align with our thesis:
Positive Signaling Negative SignalingHOF Portfolio Company
PeopleProductMarket
Criteria
* At time of investment
10
 Next Steps
 Growing Your “Network 2.0”
 Signals of Potential
Customers
 Tool of the Trade
 Introduction
http://www.flickr.com/photos/marieswartz/4
228616284/sizes/z/in/photostream/© 2018 David Teten. More at teten.com
11
Angel groups
using Gust [i] HOF Capital [ii]
Typical
entrepreneur
Profiled initially 20,850 NA ~3-6
Target Selected 1,315 1,800 ~3
Met 1,047 340 NA
Due diligence 577 75 2
Invested/launched 541 7 1
Deals as %
targeted
companies
41.1%
(2.6% of
submissions)
0.4% !
# Companies Analyzed Annually by Investors vs. Founders
[i] Available at http://angelsoft.net/a/venture-valuation ,
as of twelve months ending March 17, 2010.
[ii] Annualized over 21 months ended 3/2017.
Investors Typically Are Far More Selective Than
Founders…but Have Less Risk
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 12
 Market Research is the systematic, objective collection and analysis of
data about a particular target market, competition, and/or environment.
 Always incorporates some form of data collection, whether it be primary or
secondary research.
Definition of Market Research
http://www.marketresearchworld.net/index.php?Itemid=38
&id=14&option=com_content&task=view .
http://www.flickr.com/photos/niosh/2492013803/
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 13
Brainstorm/Source
Research
Filter/Judge
Execute Lean
Refine/Pivot
today’s
focus
teten.com/pitch
leanstartup.com
Idea Search Process
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 14
1: Define Marketing Problems and Opportunities
2: Set Objectives, Budget, and Timetables
3: Select Research Types, Methods, and Techniques
4: Design Research Instruments
5: Collect Data
6: Organize and Analyze the Data
7: Present and Use Market Research Findings
Market Research Process
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 15
 A survey of small business managers in Texas revealed that 84% of those
who conducted formal marketing research projects in the past three years
felt that the information obtained was worth the money spent.
 Overall, 58% said that they were able to incorporate the research findings
into their decisionmaking process.
 Only 6% reported that they were not able to implement the results.
Why Do Market Research
http://extn.msu.montana.edu/communitydevelop
ment/pubs/mt9013.pdf
Intro Tools Signals Network Next Steps
© 2018 David Teten. More at teten.com 16Inspired by Robert Bruner, Applied Mergers & Acquisitions, page 186
Info is private Info is public
Sweet spot of
highest returns
Customers pay
high prices
Customers pay
low prices
Few competitors Many competitors
Why Private Information About
Opportunities Is More Valuable
17
*http://innovation.utdallas.edu/documents/Opportunity
Evaluation.pdf . Photo:
http:/www.flickr.com/photos/nasonurb/3372990703/
Sources of Entrepreneurial Ideas:
It Is Far Easier to Identify
Entrepreneurial Opportunities In
Areas Where You Have
Expertise
 Prior knowledge
 >70% of founder’s businesses have roots in
their last job
 Alertness
 Pattern recognition
 Active search
© 2018 David Teten. More at teten.com
18
Peter Drucker’s Sources of
Innovation Opportunity (1 of 7)
Peter Drucker, Innovation and Entrepreneurship.
http://500px.com/photo/24975643
First four are within the enterprise --- essentially symptoms:
Unexpected success, failure or outside event
© 2018 David Teten. More at teten.com
19
Peter Drucker, Innovation and Entrepreneurship.
http://500px.com/photo/3568550
The incongruity between reality as it actually is and reality
as it is assumed to be, or as it “ought to be”
© 2018 David Teten. More at teten.com
Peter Drucker’s Sources of
Innovation Opportunity (2 of 7)
20
Peter Drucker, Innovation and Entrepreneurship.
http://500px.com/photo/2750064
Innovation based on process need
© 2018 David Teten. More at teten.com
Peter Drucker’s Sources of
Innovation Opportunity (3 of 7)
21
Peter Drucker, Innovation and Entrepreneurship.
http://500px.com/photo/19113541
Changes in industry structure or market structure
that catch others unaware
© 2018 David Teten. More at teten.com
Peter Drucker’s Sources of
Innovation Opportunity (4 of 7)
22
Peter Drucker, Innovation and Entrepreneurship.
http://500px.com/photo/2399314
Demographics (population changes)
© 2018 David Teten. More at teten.com
Peter Drucker’s Sources of
Innovation Opportunity (5 of 7)
23
Peter Drucker, Innovation and Entrepreneurship.
http://500px.com/photo/2480850
Changes in perception, mood and meaning
© 2018 David Teten. More at teten.com
Peter Drucker’s Sources of
Innovation Opportunity (6 of 7)
24
Peter Drucker, Innovation and Entrepreneurship.
http://500px.com/photo/26552303
New knowledge, both scientific and nonscientific
© 2018 David Teten. More at teten.com
Peter Drucker’s Sources of
Innovation Opportunity (7 of 7)
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 25
http://www.flickr.com/photos/marieswartz/4
228616284/sizes/z/in/photostream/
 Next Steps
 Growing Your “Network 2.0”
 Signals of Potential Customers
 Tool of the Trade
 Introduction
© 2018 David Teten. More at teten.com
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 26
Identify Opportunities With Four
Major Techniques:
Based on Bruner, Robert F., Applied Mergers and Acquisitions.
New York: John Wiley & Sons, 2004. Page 90.
Listen to markets
(“top down”)
Listen to firms
(“bottom up”)
Start with Data (“inside
out”)
Observe a pattern of
attractive performance in a
certain sector, e.g., past
successful investments by
your competitors.
Analyze
performance results
for sectors of the
market, then drill
down to the most
attractive
companies.
Analyze performance
of individual
companies, and seek
to identify common
causal patterns.
Start with ideas
(“outside in”)
Start with a theme you
believe in, e.g., the aging of
Western populations.
Investigate the
implications of your
theme on your
industries of
interest.
Investigate the
implications of your
theme on your
companies of interest.
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 27
Market Mapping Is a Powerful Way to
Identify White Space
Sample Market Mapping Approach
# Stage Example from Klout (ffVC company)
1
Choose industries and geographies of initial
interest.
Lean entrepreneur in US.
2 Define your proprietary point of view.
Thesis: People will care about their influence on social
media networks, just as they care about their
dress/appearance in face-to-face networks.
3
Translate into investment theme for specific
industries and/or geographies of interest.
Expect growth of analytics companies analyzing social
media influence.
4
List major players in target
industries/geographies, and how each will be
impacted by investment themes.
Recruiters and marketers will use social media influence
as a filter for identifying candidates with whom they want
to work.
5
Iteratively improve market map based on feedback
from industry.
Discuss elements of the market map with key sector
players through industry forums and mass media.
6
Determine which activities along the value chain
offer the highest return (typically the proprietary
ones).
A large database of information about social media
influence is difficult to build and can be branded.
7 Identify areas of future growth.
People will care about their influence in niche markets,
e.g., who are the influencers in the fashion industry.
8 Assess fit with your strategy. Examine how people are using the product.
9
Regularly update the market map based on market
feedback and lessons from investment prospects.
Get smarter.
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 28
Chinese Entrepreneurs’ Social Networking
Market Map (with Founding Year)
This chart is purely illustrative and is not intended to be exhaustive.
Business
Social
Dating
North America Western Europe China
LinkedIn
(2002)
Facebook
(2004)
Tinder
(2012)
VZ
Netwerke
(2005)
Badoo
(2006)
WeChat
(2010)
MoMo
(2011)
LinkedIn
(2002)
LinkedIn
(2002)
MaiMai
(2012)
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 29
Other Sample Market Maps
Contextual info about each company to Include
 Management strength
 Product strength
 Client desirability
 Financial returns
Quality
Products
Customer
Segment
Distribution
Channel
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 30http://flickr.com/photos/neilt/2517652/sizes/o/
Google Search Hacks
 Filetype:pdf
 Filetype:ppt
 Filetype:doc
 Books.Google.com
 Site: [proven site]
eDonkey—search hard drives
© 2018 David Teten. More at teten.com
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 31
 Often available free
for students
 Public libraries also
often offer free access
 D&B
 Hoovers
 Factiva
 LexisNexis
Major Research Databases
http://www.flickr.com/photos/kodomut/3728718035/sizes/l/
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 32http://www.flickr.com/photos/kodomut/3728718035/sizes/l/
Wall Street Research
 Charles Schwab account
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 33
 Slideshare – presentation slides
from conferences/events
 Scribd, Docstoc – general
 Archive.org – Web archives
 BaiduYun - Chinese
http://www.flickr.com/photos/sookie/94778946/
Online Document
Repositories/Marketplace for
Files, Publications,
Presentations, and
Whitepapers
© 2018 David Teten. More at teten.com
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 34
 Attaain
 Compete
 Rivalmap
 SpyFu
Tools for Tracking Competitors
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 35
 Prestige
 Open doors
 Education
 Substantive experience
 Target marketing
http://www.flickr.com/photos/uaein
credible/3333223048/sizes/o/
How to Woo Interns
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 36http://flickr.com/photos/foundphotoslj/1134148114/
Student Consulting Free Resources
 Columbia Business School Small Business
Consulting Program
 Insite Fellows
 InternMatch.com
 Colleges
 Student Special Interest Groups
 Offshore: IIM Ahmedabad Forum for Industry
Interaction
 Riipen.com
© 2018 David Teten. More at teten.com
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 37http://www.flickr.com/photos/extraketchup/748452643/sizes/o/
 Adword buys
 Google Forms
 Surveymonkey
 Polldaddy
Polling
© 2018 David Teten. More at teten.com
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 38
http://www.flickr.com/photos/marieswartz/4
228616284/sizes/z/in/photostream/© 2018 David Teten. More at teten.com
 Next Steps
 Growing Your “Network 2.0”
 Signals of Potential
Customers
 Tool of the Trade
 Introduction
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 39
 Observe customers in action
 In-depth interviews
 Snowball sampling
 Ask for referrals to
potential buyers to build
a sample
 Online surveys
 Bleeding-edge users`
Customers
http://www.flickr.com/photos/superrabbit/319538167/© 2018 David Teten. More at teten.com
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 40Source: Jeff Stewart
Ship Early
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 41Source: Jeff Stewart
Questions Signal Need
 Quora
 ZhiHu
 36Kr
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 42
Analyze Search Engine Traffic
Source: Jeff Stewart
http://500px.com/photo/6878052
 What phrasing do people use to describe their
problem?
 Use Google Adwords Keyword Tool
© 2018 David Teten. More at teten.com
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 43
Vary Your Launch Pages, and
Always Collect Emails
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 44
Source: Jeff Stewart. Interaxon and Indiegogo are
both ff Venture Capital portfolio companies.
Cash Is a Market Signal
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 45
 CB Insights
 Crunchbase
 Techcrunch
 Mashable
 Mercurynews.com/vc
 Venturebeat
 China: LiaoYuan.io
Identify (and Probably Avoid) the
Sectors Attracting VC Funding
https://www.cbinsights.com/blog/micro-vcs-to-watch/#ffvc
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 46
http://www.flickr.com/photos/marieswartz/
4228616284/sizes/z/in/photostream/
 Next Steps
 Growing Your “Network 2.0”
 Signals of Potential Customers
 Tool of the Trade
 Introduction
© 2018 David Teten. More at teten.com
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 47
http://www.flickr.com/photos/2343976
1@N03/3258313816/sizes/l/
Social Media Allows You to Convert
Cold Calls to Warm Calls
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 48
Network Valuation Formula
Ch = Character
Co = Your Firm’s Competence
R = Relevance of the contact
S = Strength of your relationship
I = Information
N= Number of people
D= Diversity
= D * ∑ (Chn*Con *Rn* Sn*In)
N
n=1
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 49
Biography analysis software allows
you to search by common affinity and
more effective subsequent outreach
 Boardex
 Klout*
 LinkedIn
 Saleforce Data.com
 Pipl
 ZoomInfo
Leading Providers of Biography Analysis Data
* ff Venture Capital portfolio company
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 50http://flickr.com/photos/h-k-d/2898797929/sizes/o/
Learn from People Who’ve Been
There
 Ex-employees
 Customers who’ve analyzed market vendors
© 2018 David Teten. More at teten.com
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 51
http://www.flickr.com/photos/progra
mmerman/2315566040/sizes/l/
© 2018 David Teten. More at teten.com
Organizing / Speaking at Events
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 52
http://www.flickr.com/photos/progra
mmerman/2315566040/sizes/l/
© 2018 David Teten. More at teten.com
Organizing / Speaking at Events
 Alumni organizations
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 53
How to Get People to Return Your Calls
 WIIFM (“What’s In It For Me?”)
 Affinity
 Information
 Others' Credibility
 Ego Boost
http://www.nus.edu.sg/oam/studentprofiles.html
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 54
Meet People Face-to-Face
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 55
Effective Analysts Are Data Hounds
Tools for assimilating data into your
Contact Relationship Management (CRM) system
Data source Selected technology for inserting data into CRM
Cards FullContact
Data
Enrichment
Avention, ClearBit, Cloze, Data.com, Discover.ly,
Evercontact, Introhive, LeadIQ, Plaxo, Ringlead,
Salestools.io, SalesOps, VibeApp, DiscoverOrg
Other LinkedIn
Full CRM
Microsoft Dynamics, Salesforce, SalesforceIQ, Act, Base,
many others
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 56
 IERG Online
 Executive Forum
 Sermo
 ChinaCEOT.com
Platforms
 LinkedIn
 Xing
 Google Groups
 Yahoo Groups
 Zintro
Sample Gated Communities for
Executives
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 57
Sample Gated Communities for
Investors
Angel
Group
Platforms
Angel
Communitie
s
Loans
Private
Equity
Public
Gust AngelList
LendingClub
Association
for Corporate
Growth
Albourne
Village
Proseeder
CircleUp
Prosper
Axial
FT Alphaville
Long Room
LiaoYuan.io FundersClub AliLoan
Intralinks Deal
Nexus
Sum Zero
AngelClub OurCrowd MergerMarket
Value
Investors
Club
SeedInvest AngelClub LiaoYuan.io
Signals Network Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
Intro Tools
© 2018 David Teten. More at teten.com 58© 2018 David Teten. More at teten.com http://flickr.com/photos/extranoise/169187125/sizes/l/
Diversity your network by identifying
logically adjacent networks
 By technology
 By industry
 By geography
 By personal characteristics
 By market
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 59
http://www.flickr.com/photos/marieswartz/4
228616284/sizes/z/in/photostream/© 2018 David Teten. More at teten.com
 Next Steps
 Growing Your “Network 2.0”
 Signals of Potential Customers
 Tool of the Trade
 Introduction
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 60http://innovation.utdallas.edu/documents/OpportunityEvaluation.pdf
Further Resources
 Baron, R.A. Opportunity Recognition as Pattern Recognition. Academy
of Management Perspectives. Feb 2006
 Drucker, P.F. 1993. Innovation & Entrepreneurship. HarperBusiness. New
York.
 Bhide, A. 1996. The Questions Every Entrepreneur Must Answer. Harvard
Business Review. Nov-Dec 1996.
 Gourville, J.T. 2006. Eager Sellers, Stony Buyers: Understanding the
Psychology of New Product Adoption. HBR June 2006
 Graham, Paul, "How to Get Startup Ideas”
 Teten, David, and Allen, Scott 2005. The Virtual Handshake: Opening
Doors and Closing Deals Online. AMACOM, 2005. Free copy at
TheVirtualHandshake.com
 The Institute for Innovation & Entrepreneurship at UT Dallas:
innovation.utdallas.edu
 Checklist for pitching a VC: teten.com/pitch
 Relevant blogs: Corporate-innovation.co , Startuplessonslearned.com,
Teten.com
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 61
Any questions ?
slides at
teten.com/mr
HOF.capital
@HOFCapital
teten.com
@dteten
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 62
A representative of an asset management firm (“Firm”) is providing this presentation for
informational purposes to the intended audience. Nothing in this presentation shall constitute an
offer or solicitation with respect to the purchase or sale of any security in any jurisdiction nor
should anything in this presentation form the basis of, or be relied upon for, making any
investment decision.
Nothing in this presentation constitutes professional and/or financial advice of any kind (including
business, employment, investment advisory, accounting, tax, and/or legal advice), nor does any
information in this presentation constitute a comprehensive or complete statement of the matters
discussed or the law relating thereto.
This presentation and the information contained herein are provided “AS IS”. The Firm and the
presenter make no representation or warranty (express or implied) with respect to the
information contained herein (including, without limitation, information obtained from third
parties) and expressly disclaims any liability based on or relating to the information contained in,
or errors or omissions from, these materials; or based on or relating to the recipient’s use (or the
use by any of its affiliates or representatives or any other person) of these materials; or based
on any other written or oral communications transmitted to the recipient or any of its affiliates or
representatives. The Firm and the presenter undertake no duty or obligation to update or revise
the information contained in this presentation.
Disclaimer
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 63
4 of our 19 companies have female CEOs/cofounders;
2 of our 9 employees are women
Umaimah Mendhro
Founder & CEO
Carol Reiley
Co-Founder & President
Jessica Taggart
Co-Founder & COO
Tianyue Yu
Co-founder & VP of Products
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 64
HOF Capital has backed 11 founding teams from
underrepresented backgrounds: Africa, Latin America,
MENA, Turkey, and African-American
Robert Davari
Co-Founder & CEO
Iranian-American
Edrizio De La Cruz
Co-Founder & CEO
Dominican immigrant
Orkun Atik
Founder & CEO
Turkish immigrant
David Shadpour
Co-Founder & CEO
Iranian-American
Naguib Samih Sawiris
Founder & CEO
Egyptian immigrant
Umaimah Mendhro
Founder & CEO
Pakistani immigrant
Ryan Leslie
Founder & CEO
African-American
Iyinoluwa Aboyeji
Co-Founder & CEO
Nigerian immigrant
Louay Eldada
Co-Founder & CEO
Lebanese immigrant
Ricardo Garcia-Amaya
Founder & CEO
Colombian immigrant
Kaivan Sattar
Co-Founder & CEO
Bangladeshi immigrant
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 65
Additionally, HOF Capital has backed 10 founding teams from
Canada, China, Europe, India, and Russia
Ahti Heinla
Co-Founder & CEO
Estonian immigrant
Derrick Fung
Founder & CEO
Chinese-Canadian
Paul Kats
Co-Founder & CEO
Russian-American
Akhil Lodha
Co-Founder & CEO
Indian-American
Andrew Ng
Board member of Drive.ai
Chinese-American
Sameep Tandon
Co-Founder & CEO
Indian-American
Soenke Weiss
Founder and Executive
Director
German immigrant
Joshua Udashkin
Founder & CEO
Canadian immigrant
Vijaykumar Krishnaswamy
CTO
Indian-American
Janus Friis
Co-Founder
Danish immigrant
Ti Zhang
Founder
Chinese immigrant
Dishant Shah
Founder
Indian immigrant
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 66
Appendix:
Additional Slides from Presentation to
Chinese-American Conference
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 67
MaiMai
• Founded in 2012
• Market White Space identified: Unlike in Western countries,
communication in Chinese business community was not based on
emailing culture, and cold emailing doesn’t work very well in China.
Therefore, LinkedIn hasn’t achieved the place of being the most effective
business social media platform in China. MaiMai identified this Market
White Space and formed the business social network model that’s based
on mutual friends or connections, which is a more acceptable way of
building connections in China.
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 68
WeChat
• Founded in 2010, by Xiaolong Zhang
• Before WeChat came out, there are RenRen and QQ. RenRen was
the Chinese Equivalent of Facebook and QQ is the Chinese
equivalent of Whatsapp. However, there wasn’t a platform that
people could do both on it. That’s the market white space the
founder of WeChat and Tencent identified. With multi-functionalities
of private/group messaging, photo sharing and microblogging, and
later on e-wallet, WeChat took the absolute position of early-enterer
of this whitespace in Chinese social platform market, and attracted
1.1 billion users so far.
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 69
Weibo
• Founded in 2009, by Charles Chao (SINA founder)
• First microblogging site in China, model based on Twitter
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 70
MoMo
• Founded by Tang Yan, in 2011
• The first location-based online dating app in China, identified the market
white space in Chinese online dating market, which at that time, there
wasn’t an app available for people to meet nearby people, and users
could be selective on who they want to see based on common-interests,
communities, jobs, and different age groups.
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 71
HOF Capital works with students
 Jobs and internships: HOF.capital/jobs
 Research: HOF.capital/jobs/researcher
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 72
Appendix: Additional Slides for
Singapore
http://www.flickr.com/photos/90664717@N00/38
0336885/sizes/z/in/photostream/
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 73
Darren Luo (NUS),
http://flickr.com/photos/found
photoslj/1134148114/
Intern Sources in Singapore
Universities:
 NUS Business School Career Services: http://bit.ly/9GOqAb
 NUS Career Services Center: www.nus.edu.sg/osa/career/employer/index.html
 NUS Overseas Colleges (NOC) www.overseas.nus.edu.sg/
 The ilead Program: www.nus.edu.sg/nec/ee/ilead/index.html
 NOC Alumni: www.nocalumni.org/site/index.php
 NTU Business School: www.nbs.ntu.edu.sg/careerservices/index.asp
 NTU Career Services Center: www.nbs.ntu.edu.sg/careerservices/index.asp
 SMU: www.smu.edu.sg/students/career_services/for_employer/recruit.asp
 Singapore Institute of Management: www.sim.edu.sg
Polytechnics
 Singapore Polytechnic: http://bit.ly/aPGxwu
 Entrepreneurship IAP: www.sp.edu.sg/wps/portal/vp-
spws/spws.i.entrepreneurshipinsp.itp
 Temasek Polytechnic: www.tp.edu.sg/home/global/glo_sip.htm
 Ngee Ann Polytechnic: www.np.edu.sg/ss/internship/Pages/local.aspx
 Nanyang Polytechnic: www.nyp.edu.sg/aboutNYP/job_opportunities_for_employers.html
 Republic Polytechnic: www.rp.sg/iep/employer/
Signals Network Next StepsIntro Tools
© 2018 David Teten. More at teten.com 74
Intern Sources in Singapore
 jobs.triplepoint.asia/jobs
 www.singapore-interns.com
 singaporeinternship.com
 originsingapore.com
 internsg.com
 IIM Ahmedabad Forum for Industry Interaction
Darren Luo (NUS),
http://flickr.com/photos/found
photoslj/1134148114/

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The Next Great Entrepreneurial Opportunity: How to Identify Market White Space

  • 1. 1 What Startup Will You Build? How to Identify Market White Space http://www.flickr.com/photos/marieswartz/4 228616284/sizes/z/in/photostream/ David Teten HOF.capital // @HOFcapital teten.com // @dteten © 2018 David Teten. More at teten.com
  • 2. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 2 Don’t Take Notes! Download detailed slides and see the video at: teten.com/mr
  • 3. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 3 David Teten  Managing Partner, HOF Capital  Previously Partner for six years, ff Venture Capital, one of the top four consistently best-performing seed- and early-stage VC firms in the U.S.  Previously serial entrepreneur and Bear Stearns technology investment banker  Advised clients such as Goldman Sachs Special Situations Group, Icahn Enterprises, LLR Partners ($1.4b fund), Birch Hill Equity Partners (C$2B fund), and other institutional investors  Harvard MBA, Yale BA  Teten.com / @dteten / info@teten.com
  • 4. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 4  American Society of Mechanical Engineers  Founder Institute New York (three times)  Harvard Club of New York Tech & Entrepreneurship Group  Harvard Graduate School of Arts & Sciences Business Club / Harvard Graduate School Council  Limmud NY / Limmud FSU  National University of Singapore Techno Venture Forum (Entrepeneurship Centre)  New York Business Expo  OCE Discovery (Canadian innovation conference)  Princeton University Keller Center  TechWeek NY (twice)  TorchLight US-China Conference  Thought Leaders in Business series (Yale Club of New York)  Womensphere (four times) Past Audiences for This Presentation
  • 5. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 5 HOF Capital: Uniquely Positioned to Outperform  Primarily invest at the Seed and Series A stages in North America, Western Europe, and Israel  Our 14 initial Limited Partners consist of leading multinational corporations & family offices which view HOF as the best way to work with the US innovation economy, including: Orascom Group, Godrej Group, Dallah Albaraka, Globalive, and Travco Group  We provide our portfolio companies with active sales, capital-raising, and business development assistance, leveraging our relationships with enterprise leaders & governments worldwide  Powerful ecosystem relationships: co-invested with many leading VC funds in the same round with the same terms, including NEA, GV (Google Ventures), Bessemer Venture Partners, First Round Capital, and 8VC  International platform: 2 primary offices, team fluent in 8 languages
  • 6. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 6 New York (HQ) Mumbai San Francisco Cairo Taipei London Brazil Dubai Our investors are global; we invest in North America + Western Europe Dublin Sydney PRIMARY OFFICE AFFILIATE REPRESENTATIVE Through Venture Partners & Venture Associates PORTFOLIO COMPANY HQ Mountain View Los Angeles Santa Monica Beverly Hills Seattle Austin Toronto Berlin Sunnyvale LIMITED PARTNERS Australia Bahrain UAE Egypt UK FranceUSA Canada HK India KSA Kuwait Tanzania Thailand Lithuania
  • 7. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 7 HOF is backed by leadership of complementary global conglomerates Real Estate & Hospitality Telecom & Internet Media Infrastructure Financial Services Egypt's largest tourism conglomerate with $600m+ in revenue; 1.3m tourist customers annually Multifamily office for founders of WIND Mobile ($1.6bn exit) and Globalive Communications ($120m revenue) Indian conglomerate with current annual revenues of $4.1bn+ Global $18bn conglomerate employing over 60,000 people in over 20 countries UK / EMEA CANADA INDIA EGYPT In addition, we are supported by limited partners from 14 different countries, including Australia, France, Thailand, UK, Lithuania, Tanzania, and USA Over 15,000 employees in 8 countries across 40+ companies, and affiliations with 200+ international brands and companiesKUWAIT
  • 8. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 8 Current active portfolio * Not included on the following Portfolio History slides as we are not on the cap table Note: Does not include Uber as it is not representative of our usual strategy LiDAR sensors and smart sensing solutions (SPV)* Mobile finance platform for emerging markets Call center AI for automating call campaigns AI-enabled and always-on personal retail concierge Global content-driven music e-commerce and online education platform Building the brain of self- driving vehicles (SPV) Vertically integrated design platform for custom furniture and brand promotion Autonomous robot- powered local delivery services platform Mobile-first intelligent rewards platform for millennials End-to-end digital payments infrastructure for Africa On-demand content marketplace powered by freelancers Smart IoT travel platform combining the world's best materials, design, and technology Cross-border bill payments API revolutionizing remittances First low-cost, intuitive, and scalable portfolio hedging SaaS platform for investors Global e-commerce platform connecting designers, producers, and consumers On-demand mobile education platform utilizing an intelligent chat interface Audience management platform bypassing social platforms Mobile and data-driven event ticketing and management platform Hospitality AI for automated housekeeping management Communication enhancement platform transforming the nature of mobile conversations Web application firewall using neural networks for banks
  • 9. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 9 World-Class Leadership Team Starship Technologies Ahti Heinla and Janus Friis also co-founded Skype  Visionary founders  Mission driven  Untrustworthy, uninspiring  Lack of focus and obsession Platform Potential Flutterwave Infrastructure used by banks for seamless digital integration  Creates platform for other businesses  Changes the operations of an industry  Offers features, not platforms  Point solution with limited growth Realistic Path to Profitability Tixr Intuitive pricing and fees that lead to company profits  Realistic economics  Long term sustainability  Unsupported revenue assumptions  Consistently unprofitable Solving a Challenging High-Value Problem VOIQ Opportunity validated by HubSpot’s former VP of Sales  Validated pain point  Paying customers  Low frequency and AOV  Low demand or demand creation Big Improvement over Incumbent Solution OPTii Solutions Hospitality software extremely effective at reducing costs  Better, faster, cheaper  Clients leave incumbent firms  Insignificant improvement over legacy product Significant Competitive Edge Social Native Team includes the AdSense and Buddy Media co-founders  10x better product/team  Strong network effects  No proprietary resources  Easy to imitate and replicate Existing Market Validation Yup Confirmed edge in the digital tutoring industry  Customer references  Competitor benchmarking  High customer churn  Stagnant POCs Clear Commercialization Strategy Raden  Path to monetization  Scalable unit economics  Weak sales funnel  Pre-product Large Revenue Potential Superphone Audience management platform bypassing social platforms  New market creation  Revolutionary product  Targeting shrinking market  Clone business or copycat product Reasonable Valuation Showroom  Value results, not promises  Potentially return the fund  Excessive structuring  No co-investors Investment screening criteria We have an internal scoring method to quickly screen opportunities & ensure they align with our thesis: Positive Signaling Negative SignalingHOF Portfolio Company PeopleProductMarket Criteria * At time of investment
  • 10. 10  Next Steps  Growing Your “Network 2.0”  Signals of Potential Customers  Tool of the Trade  Introduction http://www.flickr.com/photos/marieswartz/4 228616284/sizes/z/in/photostream/© 2018 David Teten. More at teten.com
  • 11. 11 Angel groups using Gust [i] HOF Capital [ii] Typical entrepreneur Profiled initially 20,850 NA ~3-6 Target Selected 1,315 1,800 ~3 Met 1,047 340 NA Due diligence 577 75 2 Invested/launched 541 7 1 Deals as % targeted companies 41.1% (2.6% of submissions) 0.4% ! # Companies Analyzed Annually by Investors vs. Founders [i] Available at http://angelsoft.net/a/venture-valuation , as of twelve months ending March 17, 2010. [ii] Annualized over 21 months ended 3/2017. Investors Typically Are Far More Selective Than Founders…but Have Less Risk
  • 12. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 12  Market Research is the systematic, objective collection and analysis of data about a particular target market, competition, and/or environment.  Always incorporates some form of data collection, whether it be primary or secondary research. Definition of Market Research http://www.marketresearchworld.net/index.php?Itemid=38 &id=14&option=com_content&task=view . http://www.flickr.com/photos/niosh/2492013803/
  • 13. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 13 Brainstorm/Source Research Filter/Judge Execute Lean Refine/Pivot today’s focus teten.com/pitch leanstartup.com Idea Search Process
  • 14. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 14 1: Define Marketing Problems and Opportunities 2: Set Objectives, Budget, and Timetables 3: Select Research Types, Methods, and Techniques 4: Design Research Instruments 5: Collect Data 6: Organize and Analyze the Data 7: Present and Use Market Research Findings Market Research Process
  • 15. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 15  A survey of small business managers in Texas revealed that 84% of those who conducted formal marketing research projects in the past three years felt that the information obtained was worth the money spent.  Overall, 58% said that they were able to incorporate the research findings into their decisionmaking process.  Only 6% reported that they were not able to implement the results. Why Do Market Research http://extn.msu.montana.edu/communitydevelop ment/pubs/mt9013.pdf
  • 16. Intro Tools Signals Network Next Steps © 2018 David Teten. More at teten.com 16Inspired by Robert Bruner, Applied Mergers & Acquisitions, page 186 Info is private Info is public Sweet spot of highest returns Customers pay high prices Customers pay low prices Few competitors Many competitors Why Private Information About Opportunities Is More Valuable
  • 17. 17 *http://innovation.utdallas.edu/documents/Opportunity Evaluation.pdf . Photo: http:/www.flickr.com/photos/nasonurb/3372990703/ Sources of Entrepreneurial Ideas: It Is Far Easier to Identify Entrepreneurial Opportunities In Areas Where You Have Expertise  Prior knowledge  >70% of founder’s businesses have roots in their last job  Alertness  Pattern recognition  Active search © 2018 David Teten. More at teten.com
  • 18. 18 Peter Drucker’s Sources of Innovation Opportunity (1 of 7) Peter Drucker, Innovation and Entrepreneurship. http://500px.com/photo/24975643 First four are within the enterprise --- essentially symptoms: Unexpected success, failure or outside event © 2018 David Teten. More at teten.com
  • 19. 19 Peter Drucker, Innovation and Entrepreneurship. http://500px.com/photo/3568550 The incongruity between reality as it actually is and reality as it is assumed to be, or as it “ought to be” © 2018 David Teten. More at teten.com Peter Drucker’s Sources of Innovation Opportunity (2 of 7)
  • 20. 20 Peter Drucker, Innovation and Entrepreneurship. http://500px.com/photo/2750064 Innovation based on process need © 2018 David Teten. More at teten.com Peter Drucker’s Sources of Innovation Opportunity (3 of 7)
  • 21. 21 Peter Drucker, Innovation and Entrepreneurship. http://500px.com/photo/19113541 Changes in industry structure or market structure that catch others unaware © 2018 David Teten. More at teten.com Peter Drucker’s Sources of Innovation Opportunity (4 of 7)
  • 22. 22 Peter Drucker, Innovation and Entrepreneurship. http://500px.com/photo/2399314 Demographics (population changes) © 2018 David Teten. More at teten.com Peter Drucker’s Sources of Innovation Opportunity (5 of 7)
  • 23. 23 Peter Drucker, Innovation and Entrepreneurship. http://500px.com/photo/2480850 Changes in perception, mood and meaning © 2018 David Teten. More at teten.com Peter Drucker’s Sources of Innovation Opportunity (6 of 7)
  • 24. 24 Peter Drucker, Innovation and Entrepreneurship. http://500px.com/photo/26552303 New knowledge, both scientific and nonscientific © 2018 David Teten. More at teten.com Peter Drucker’s Sources of Innovation Opportunity (7 of 7)
  • 25. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 25 http://www.flickr.com/photos/marieswartz/4 228616284/sizes/z/in/photostream/  Next Steps  Growing Your “Network 2.0”  Signals of Potential Customers  Tool of the Trade  Introduction © 2018 David Teten. More at teten.com
  • 26. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 26 Identify Opportunities With Four Major Techniques: Based on Bruner, Robert F., Applied Mergers and Acquisitions. New York: John Wiley & Sons, 2004. Page 90. Listen to markets (“top down”) Listen to firms (“bottom up”) Start with Data (“inside out”) Observe a pattern of attractive performance in a certain sector, e.g., past successful investments by your competitors. Analyze performance results for sectors of the market, then drill down to the most attractive companies. Analyze performance of individual companies, and seek to identify common causal patterns. Start with ideas (“outside in”) Start with a theme you believe in, e.g., the aging of Western populations. Investigate the implications of your theme on your industries of interest. Investigate the implications of your theme on your companies of interest.
  • 27. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 27 Market Mapping Is a Powerful Way to Identify White Space Sample Market Mapping Approach # Stage Example from Klout (ffVC company) 1 Choose industries and geographies of initial interest. Lean entrepreneur in US. 2 Define your proprietary point of view. Thesis: People will care about their influence on social media networks, just as they care about their dress/appearance in face-to-face networks. 3 Translate into investment theme for specific industries and/or geographies of interest. Expect growth of analytics companies analyzing social media influence. 4 List major players in target industries/geographies, and how each will be impacted by investment themes. Recruiters and marketers will use social media influence as a filter for identifying candidates with whom they want to work. 5 Iteratively improve market map based on feedback from industry. Discuss elements of the market map with key sector players through industry forums and mass media. 6 Determine which activities along the value chain offer the highest return (typically the proprietary ones). A large database of information about social media influence is difficult to build and can be branded. 7 Identify areas of future growth. People will care about their influence in niche markets, e.g., who are the influencers in the fashion industry. 8 Assess fit with your strategy. Examine how people are using the product. 9 Regularly update the market map based on market feedback and lessons from investment prospects. Get smarter.
  • 28. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 28 Chinese Entrepreneurs’ Social Networking Market Map (with Founding Year) This chart is purely illustrative and is not intended to be exhaustive. Business Social Dating North America Western Europe China LinkedIn (2002) Facebook (2004) Tinder (2012) VZ Netwerke (2005) Badoo (2006) WeChat (2010) MoMo (2011) LinkedIn (2002) LinkedIn (2002) MaiMai (2012)
  • 29. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 29 Other Sample Market Maps Contextual info about each company to Include  Management strength  Product strength  Client desirability  Financial returns Quality Products Customer Segment Distribution Channel
  • 30. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 30http://flickr.com/photos/neilt/2517652/sizes/o/ Google Search Hacks  Filetype:pdf  Filetype:ppt  Filetype:doc  Books.Google.com  Site: [proven site] eDonkey—search hard drives © 2018 David Teten. More at teten.com
  • 31. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 31  Often available free for students  Public libraries also often offer free access  D&B  Hoovers  Factiva  LexisNexis Major Research Databases http://www.flickr.com/photos/kodomut/3728718035/sizes/l/
  • 32. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 32http://www.flickr.com/photos/kodomut/3728718035/sizes/l/ Wall Street Research  Charles Schwab account
  • 33. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 33  Slideshare – presentation slides from conferences/events  Scribd, Docstoc – general  Archive.org – Web archives  BaiduYun - Chinese http://www.flickr.com/photos/sookie/94778946/ Online Document Repositories/Marketplace for Files, Publications, Presentations, and Whitepapers © 2018 David Teten. More at teten.com
  • 34. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 34  Attaain  Compete  Rivalmap  SpyFu Tools for Tracking Competitors
  • 35. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 35  Prestige  Open doors  Education  Substantive experience  Target marketing http://www.flickr.com/photos/uaein credible/3333223048/sizes/o/ How to Woo Interns
  • 36. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 36http://flickr.com/photos/foundphotoslj/1134148114/ Student Consulting Free Resources  Columbia Business School Small Business Consulting Program  Insite Fellows  InternMatch.com  Colleges  Student Special Interest Groups  Offshore: IIM Ahmedabad Forum for Industry Interaction  Riipen.com © 2018 David Teten. More at teten.com
  • 37. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 37http://www.flickr.com/photos/extraketchup/748452643/sizes/o/  Adword buys  Google Forms  Surveymonkey  Polldaddy Polling © 2018 David Teten. More at teten.com
  • 38. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 38 http://www.flickr.com/photos/marieswartz/4 228616284/sizes/z/in/photostream/© 2018 David Teten. More at teten.com  Next Steps  Growing Your “Network 2.0”  Signals of Potential Customers  Tool of the Trade  Introduction
  • 39. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 39  Observe customers in action  In-depth interviews  Snowball sampling  Ask for referrals to potential buyers to build a sample  Online surveys  Bleeding-edge users` Customers http://www.flickr.com/photos/superrabbit/319538167/© 2018 David Teten. More at teten.com
  • 40. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 40Source: Jeff Stewart Ship Early
  • 41. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 41Source: Jeff Stewart Questions Signal Need  Quora  ZhiHu  36Kr
  • 42. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 42 Analyze Search Engine Traffic Source: Jeff Stewart http://500px.com/photo/6878052  What phrasing do people use to describe their problem?  Use Google Adwords Keyword Tool © 2018 David Teten. More at teten.com
  • 43. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 43 Vary Your Launch Pages, and Always Collect Emails
  • 44. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 44 Source: Jeff Stewart. Interaxon and Indiegogo are both ff Venture Capital portfolio companies. Cash Is a Market Signal
  • 45. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 45  CB Insights  Crunchbase  Techcrunch  Mashable  Mercurynews.com/vc  Venturebeat  China: LiaoYuan.io Identify (and Probably Avoid) the Sectors Attracting VC Funding https://www.cbinsights.com/blog/micro-vcs-to-watch/#ffvc
  • 46. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 46 http://www.flickr.com/photos/marieswartz/ 4228616284/sizes/z/in/photostream/  Next Steps  Growing Your “Network 2.0”  Signals of Potential Customers  Tool of the Trade  Introduction © 2018 David Teten. More at teten.com
  • 47. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 47 http://www.flickr.com/photos/2343976 1@N03/3258313816/sizes/l/ Social Media Allows You to Convert Cold Calls to Warm Calls
  • 48. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 48 Network Valuation Formula Ch = Character Co = Your Firm’s Competence R = Relevance of the contact S = Strength of your relationship I = Information N= Number of people D= Diversity = D * ∑ (Chn*Con *Rn* Sn*In) N n=1
  • 49. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 49 Biography analysis software allows you to search by common affinity and more effective subsequent outreach  Boardex  Klout*  LinkedIn  Saleforce Data.com  Pipl  ZoomInfo Leading Providers of Biography Analysis Data * ff Venture Capital portfolio company
  • 50. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 50http://flickr.com/photos/h-k-d/2898797929/sizes/o/ Learn from People Who’ve Been There  Ex-employees  Customers who’ve analyzed market vendors © 2018 David Teten. More at teten.com
  • 51. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 51 http://www.flickr.com/photos/progra mmerman/2315566040/sizes/l/ © 2018 David Teten. More at teten.com Organizing / Speaking at Events
  • 52. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 52 http://www.flickr.com/photos/progra mmerman/2315566040/sizes/l/ © 2018 David Teten. More at teten.com Organizing / Speaking at Events  Alumni organizations
  • 53. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 53 How to Get People to Return Your Calls  WIIFM (“What’s In It For Me?”)  Affinity  Information  Others' Credibility  Ego Boost http://www.nus.edu.sg/oam/studentprofiles.html
  • 54. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 54 Meet People Face-to-Face
  • 55. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 55 Effective Analysts Are Data Hounds Tools for assimilating data into your Contact Relationship Management (CRM) system Data source Selected technology for inserting data into CRM Cards FullContact Data Enrichment Avention, ClearBit, Cloze, Data.com, Discover.ly, Evercontact, Introhive, LeadIQ, Plaxo, Ringlead, Salestools.io, SalesOps, VibeApp, DiscoverOrg Other LinkedIn Full CRM Microsoft Dynamics, Salesforce, SalesforceIQ, Act, Base, many others
  • 56. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 56  IERG Online  Executive Forum  Sermo  ChinaCEOT.com Platforms  LinkedIn  Xing  Google Groups  Yahoo Groups  Zintro Sample Gated Communities for Executives
  • 57. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 57 Sample Gated Communities for Investors Angel Group Platforms Angel Communitie s Loans Private Equity Public Gust AngelList LendingClub Association for Corporate Growth Albourne Village Proseeder CircleUp Prosper Axial FT Alphaville Long Room LiaoYuan.io FundersClub AliLoan Intralinks Deal Nexus Sum Zero AngelClub OurCrowd MergerMarket Value Investors Club SeedInvest AngelClub LiaoYuan.io
  • 58. Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Intro Tools © 2018 David Teten. More at teten.com 58© 2018 David Teten. More at teten.com http://flickr.com/photos/extranoise/169187125/sizes/l/ Diversity your network by identifying logically adjacent networks  By technology  By industry  By geography  By personal characteristics  By market
  • 59. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 59 http://www.flickr.com/photos/marieswartz/4 228616284/sizes/z/in/photostream/© 2018 David Teten. More at teten.com  Next Steps  Growing Your “Network 2.0”  Signals of Potential Customers  Tool of the Trade  Introduction
  • 60. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 60http://innovation.utdallas.edu/documents/OpportunityEvaluation.pdf Further Resources  Baron, R.A. Opportunity Recognition as Pattern Recognition. Academy of Management Perspectives. Feb 2006  Drucker, P.F. 1993. Innovation & Entrepreneurship. HarperBusiness. New York.  Bhide, A. 1996. The Questions Every Entrepreneur Must Answer. Harvard Business Review. Nov-Dec 1996.  Gourville, J.T. 2006. Eager Sellers, Stony Buyers: Understanding the Psychology of New Product Adoption. HBR June 2006  Graham, Paul, "How to Get Startup Ideas”  Teten, David, and Allen, Scott 2005. The Virtual Handshake: Opening Doors and Closing Deals Online. AMACOM, 2005. Free copy at TheVirtualHandshake.com  The Institute for Innovation & Entrepreneurship at UT Dallas: innovation.utdallas.edu  Checklist for pitching a VC: teten.com/pitch  Relevant blogs: Corporate-innovation.co , Startuplessonslearned.com, Teten.com
  • 61. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 61 Any questions ? slides at teten.com/mr HOF.capital @HOFCapital teten.com @dteten
  • 62. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 62 A representative of an asset management firm (“Firm”) is providing this presentation for informational purposes to the intended audience. Nothing in this presentation shall constitute an offer or solicitation with respect to the purchase or sale of any security in any jurisdiction nor should anything in this presentation form the basis of, or be relied upon for, making any investment decision. Nothing in this presentation constitutes professional and/or financial advice of any kind (including business, employment, investment advisory, accounting, tax, and/or legal advice), nor does any information in this presentation constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. This presentation and the information contained herein are provided “AS IS”. The Firm and the presenter make no representation or warranty (express or implied) with respect to the information contained herein (including, without limitation, information obtained from third parties) and expressly disclaims any liability based on or relating to the information contained in, or errors or omissions from, these materials; or based on or relating to the recipient’s use (or the use by any of its affiliates or representatives or any other person) of these materials; or based on any other written or oral communications transmitted to the recipient or any of its affiliates or representatives. The Firm and the presenter undertake no duty or obligation to update or revise the information contained in this presentation. Disclaimer
  • 63. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 63 4 of our 19 companies have female CEOs/cofounders; 2 of our 9 employees are women Umaimah Mendhro Founder & CEO Carol Reiley Co-Founder & President Jessica Taggart Co-Founder & COO Tianyue Yu Co-founder & VP of Products
  • 64. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 64 HOF Capital has backed 11 founding teams from underrepresented backgrounds: Africa, Latin America, MENA, Turkey, and African-American Robert Davari Co-Founder & CEO Iranian-American Edrizio De La Cruz Co-Founder & CEO Dominican immigrant Orkun Atik Founder & CEO Turkish immigrant David Shadpour Co-Founder & CEO Iranian-American Naguib Samih Sawiris Founder & CEO Egyptian immigrant Umaimah Mendhro Founder & CEO Pakistani immigrant Ryan Leslie Founder & CEO African-American Iyinoluwa Aboyeji Co-Founder & CEO Nigerian immigrant Louay Eldada Co-Founder & CEO Lebanese immigrant Ricardo Garcia-Amaya Founder & CEO Colombian immigrant Kaivan Sattar Co-Founder & CEO Bangladeshi immigrant
  • 65. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 65 Additionally, HOF Capital has backed 10 founding teams from Canada, China, Europe, India, and Russia Ahti Heinla Co-Founder & CEO Estonian immigrant Derrick Fung Founder & CEO Chinese-Canadian Paul Kats Co-Founder & CEO Russian-American Akhil Lodha Co-Founder & CEO Indian-American Andrew Ng Board member of Drive.ai Chinese-American Sameep Tandon Co-Founder & CEO Indian-American Soenke Weiss Founder and Executive Director German immigrant Joshua Udashkin Founder & CEO Canadian immigrant Vijaykumar Krishnaswamy CTO Indian-American Janus Friis Co-Founder Danish immigrant Ti Zhang Founder Chinese immigrant Dishant Shah Founder Indian immigrant
  • 66. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 66 Appendix: Additional Slides from Presentation to Chinese-American Conference
  • 67. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 67 MaiMai • Founded in 2012 • Market White Space identified: Unlike in Western countries, communication in Chinese business community was not based on emailing culture, and cold emailing doesn’t work very well in China. Therefore, LinkedIn hasn’t achieved the place of being the most effective business social media platform in China. MaiMai identified this Market White Space and formed the business social network model that’s based on mutual friends or connections, which is a more acceptable way of building connections in China.
  • 68. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 68 WeChat • Founded in 2010, by Xiaolong Zhang • Before WeChat came out, there are RenRen and QQ. RenRen was the Chinese Equivalent of Facebook and QQ is the Chinese equivalent of Whatsapp. However, there wasn’t a platform that people could do both on it. That’s the market white space the founder of WeChat and Tencent identified. With multi-functionalities of private/group messaging, photo sharing and microblogging, and later on e-wallet, WeChat took the absolute position of early-enterer of this whitespace in Chinese social platform market, and attracted 1.1 billion users so far.
  • 69. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 69 Weibo • Founded in 2009, by Charles Chao (SINA founder) • First microblogging site in China, model based on Twitter
  • 70. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 70 MoMo • Founded by Tang Yan, in 2011 • The first location-based online dating app in China, identified the market white space in Chinese online dating market, which at that time, there wasn’t an app available for people to meet nearby people, and users could be selective on who they want to see based on common-interests, communities, jobs, and different age groups.
  • 71. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 71 HOF Capital works with students  Jobs and internships: HOF.capital/jobs  Research: HOF.capital/jobs/researcher
  • 72. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 72 Appendix: Additional Slides for Singapore http://www.flickr.com/photos/90664717@N00/38 0336885/sizes/z/in/photostream/
  • 73. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 73 Darren Luo (NUS), http://flickr.com/photos/found photoslj/1134148114/ Intern Sources in Singapore Universities:  NUS Business School Career Services: http://bit.ly/9GOqAb  NUS Career Services Center: www.nus.edu.sg/osa/career/employer/index.html  NUS Overseas Colleges (NOC) www.overseas.nus.edu.sg/  The ilead Program: www.nus.edu.sg/nec/ee/ilead/index.html  NOC Alumni: www.nocalumni.org/site/index.php  NTU Business School: www.nbs.ntu.edu.sg/careerservices/index.asp  NTU Career Services Center: www.nbs.ntu.edu.sg/careerservices/index.asp  SMU: www.smu.edu.sg/students/career_services/for_employer/recruit.asp  Singapore Institute of Management: www.sim.edu.sg Polytechnics  Singapore Polytechnic: http://bit.ly/aPGxwu  Entrepreneurship IAP: www.sp.edu.sg/wps/portal/vp- spws/spws.i.entrepreneurshipinsp.itp  Temasek Polytechnic: www.tp.edu.sg/home/global/glo_sip.htm  Ngee Ann Polytechnic: www.np.edu.sg/ss/internship/Pages/local.aspx  Nanyang Polytechnic: www.nyp.edu.sg/aboutNYP/job_opportunities_for_employers.html  Republic Polytechnic: www.rp.sg/iep/employer/
  • 74. Signals Network Next StepsIntro Tools © 2018 David Teten. More at teten.com 74 Intern Sources in Singapore  jobs.triplepoint.asia/jobs  www.singapore-interns.com  singaporeinternship.com  originsingapore.com  internsg.com  IIM Ahmedabad Forum for Industry Interaction Darren Luo (NUS), http://flickr.com/photos/found photoslj/1134148114/