so you wanna do a
startup, eh? bwahahahahahahahahahahahaha...sucka... http://www.flickr.com/photos/rhinoneal/3907394091

startups are hard.

startups are really hard.

startups are really fucking hard.

startups are heartbreaking.

startups are soul crushing.

startups are life shortening.

fact:
this is not reality.

5 myths about startups 1.
Startups cost nothing to build 2. The average tech startup founder is a 25 year old male ivy league dropout 3. Startups get funded on a napkin sketch and passion 4. A good idea wins every time 5. Location doesn’t matter*

myth #1: startups are cheap
to build

reality: lean or not, it
costs money to build something significant. and savings run out.

stuff that costs $$ as
if you didn’t already know this • hiring amazing people - and you need A level amazing people in startups (they like to be paid even if they believe in you) • infrastructure - yes. It’s cheaper than it was, but those EC2 bills are still a bitch. • marketing - you can do a LOT for free in the beginning, but there is a bunch of noise to cut through today.

fact: 4 out 5 people
who use the phrase “it’s cheap to build a startup” have never built a startup (and probably never will)...the remainder are independently wealthy.

myth #2: the average tech
co-founder is a 25 yr old male ivy league dropout

Average founder: 40 yrs old
Married With Children 6-10 yrs work experience Male = yes (4% of tech startups funded have female founders - while 40% of small businesses are owned by women) White = yes (6% of tech startups funded have non- white founders) Ivy League? Meh. Dropout? Not at all. Educated - bachelors or higher - but not necessarily Stanford, Harvard, etc.

fact: startup founders look a
LOT like themselves (and can come from ANY background). looking for patterns is the antithesis of innovative thinking.

myth #3: all you need
is a napkin plan and a bunch of passion and you’ll get money

reality: the examples that are
told around startup campfires (i.e. techcrunch) are the outliers...and there is way more than passion + napkins involved.

a week in the life
of a startup founder

monday

tuesday

wednesday

thursday

friday

saturday
http://www.flickr.com/photos/milkyworld/3128291642/sizes/l/in/photostream/

sunday

fact: you will wake up
in a puddle of your own sweat several nights a week because you realize you are completely fucked.

how to deal: 1. know
that you will be rejected. 2. understand that you will underestimate the number of times you will be rejected and how long it will take you to raise $$. (insert completely fucked night sweats here) 3. ask rejectors for feedback (REAL feedback) 4. ignore most of said feedback* 5. seek mentors and allies (note: this is the most important point I make this entire presentation) * knowing what to ignore is not easy

the worst advice EVAR: ppl
that tell you to do this are idiots. 1. when you are rejected, ask for a referral dude! IF they do this, they will explain to their contact why they passed...BAD intro. 2. when you are rejected, don’t take no for an answer this is just awkward. move on. 3. when you are rejected too often, rethink your business (i.e. pivot) it’s not you, it’s them (mostly)

conviction
http://www.businessinsider.com/pandora-vc-2010-7

three freakin
hundred!!!!

common vc rejections aka. “we’re
just not that into you.” • “we think you are too early for us.” • “we have too many deals in our pipeline.” • “we don’t understand the market.” • “we’d like to see some local investment.” • “we’d like to see some interest from a US firm.” • “you are raising too much.” • “you are raising too little.” • “if only you did a + b, we’d be a better fit...”

what they tell us they
know...

the reality...

fact: YOU build the goddamned
future. “The best way to predict the future is to invent it.” Alan Kay 1989

myth #4: a good idea
wins every time

closer to the truth: a
good idea, good execution, good timing, perseverance and balls of steel* will win. * I hate these masculine metaphors, but boobs of steel just didn’t sound right.

desire to delusional A change
the status quo D C B audacity A. those that go postal B. dictators C. serial killers D. startup entrepreneurs

the key to #winning: find
your product/market fit before you run out of money. T. IS. ALL. THA

really freakin awesome creative ways
to not go broke • take the bus (Greyhound has wifi!) • use microfunding (Indiegogo/ Kickstarter) creatively • use AirBnB - AND - rent your place out on it while you travel • speaking of AirBnB...

“Paul Graham only invested in
us, when he heard about the Obama O's story. And he figured, well these guys are like really creative, smart entrepreneurs; they'll probably change their idea.” AirBnB Founder, Brian Chesky

Hey CEO’s! Your ONLY job
is to keep the company going until you find product/market fit. ONLY job.* Your * Okay, that AND 10 gabillion other things. But this is the most important.

more funding ideas • Friends
& Family - your network is stronger than you know (we raised $192,000) • Go lean - how can you pare down your operations and personal lifestyle? Do it early. Lower the burn. • Hold a fundraiser - make it awesome. What are your Obama-O’s? • Sell your stuff on eBay - It’s a short term sacrifice. • Make $$ in your free time - Pixazza, TaskRabbit, TaskHire, deliver pizza (Alfred from Zappos did this), etc. (make it simple, mindless tasks) • Million Dollar Homepage? What else could you do that is simple but could bring in good $$. • Hire a Grant Application specialist - they often work off of commission and there are small biz grants.

Are you ready to make
the ultimate sacrifice? nly one ther e is o a nswer

myth #5: where you build
your startup doesn’t matter

WARNING: this is the part
where I get seriously unpopular.

why Canada sux4 startuping 1.
barrier for valley funds (especially at seed stage) 2. local funds are miniscule compared to valley funds 3. most of the ‘successful’ startups move to the valley, so aren’t seen as shining Canadian examples 4. most of the amazing A level talent we want to hire move to the valley (or US in general) + we compete for those few left 5. Canadians are more risk averse in general 6. Population density is an issue for markets

why Canada is PERFECT for
startuping 1. there is nothing to do here during our long winter but work 2. we have a high tolerance to pain 3. it is cost-effective to develop here 4. free health care, small biz benefits, etc make for lower burn rates 5. our dollar is strong + economy solid (yes, I know it’s because we aren’t reckless cowboys like those yanks)

what we need to change
1. encourage/educate more investment firms to invest in web startups 2. support one another better. Share intros. Work together. CROSS country (not just city) 3. invest REAL money into Canadian startups. Where is the series A? 4. recruit the talent up HERE. KEEP the talent that we have by appreciating them BEFORE they freakin leave! 5. create entrepreneurial programs for our universities + catch boys and girls at a young age to encourage 6. host more events in Canada, showcasing our startup scene - attract investors from the US to see what we have locally 7. get the press doing more pieces on Canadians state side and Canadian startups 8. reward for risk more. celebrate entrepreneurship in general.

bonus myth: the startup world
is a meritocracy

it’s not just about working
hard. (though there is hard work involved)

there is nothing fair about
this path.

both brilliant + both contributed
SO much to science tesla died broke edison died rich

and what of those with
better ideas but without resources who weren’t heard at all?

1880s or 2010s, this hasn’t
really changed.

you can do EVERYTHING right
and still die broke.

I know. I’m a real
downer.

but true entrepreneurs aren’t in
it for the fame and fortune, are we? hope fo r both) (th ough we

q: so why are we
doing this again?

a: fuck if I know.

but here I am. and
I can’t imagine doing ANYTHING else. it’s an unhealthy, but beautifully necessary obsession.

because without us crazy, delusional
people who do this the world would be a boring, stagnant place.

“Crazy Ones” Apple Think Different
Campaign, 1997 Agency: TBWAChiatDay

thank you for being crazy.
xo

Tara (@missrogue) Hunt ceo/co-founder, Buyosphere
tara@buyosphere.com 514-679-2951 www.buyosphere.com www.horsepigcow.com