Startup: Top 5 Dos & Don’ts Dr. Fengmin Gong Co-Founder & CTO/CSO Target the threats that target you. To Be… Not To Be… o Company: Terralliance, Founder Erlend Olson o Select VC Investors: Kleiner Perkins Caufield & Byers, Goldman Sachs, DAG Ventures o Secret sauce for “oil exploration” from the plane in the air o “All told, the investors had sunk nearly half-abillion dollars into Terralliance, an astounding sum given the audacity of the company’s aspirations — and the paucity of its accomplishments.” o via Fortune VALUE: Important Founders’ Traits o o o o o Technical competence and business acumen Self-aware Open-minded Hardworking Team builder AVOID: Common Founders’ Traps o Product, not technology o “I have the best technology since the sliced bread!” o Focus, not to boil the ocean o “I can build a portfolio of products to solve the ill of the world.” o Customer’s opinion counts o “It is very easy to use, for me!” TAKE: Desirable Funding Path o Delay taking external money if you can 1. 2. 3. 4. Your savings, friends and family Experienced angel investors Institutional VCs Strategic corporate investors PROMOTE: Desirable Startup Culture o o o o o Innovative & proactive Open communication Best idea wins Flat functional organization Meritocracy FOLLOW: Important Execution Principles o My C3 o Clarity: what are you doing, why? o Clear Thinking: why this way, not that way? o Commitment: do whatever it takes to deliver on time with quality Target the threats that target you. May The Force Be With You! @FengminGong fgong@cyphort.com CYPHORT Confidential